To maximize their physical assets, and to ensure they provide the highest ROI, companies must have a clear grasp on their assets and the risks involved. Without a strong understanding of the risk environment businesses can make rash choices that will ultimately hurt https://expertalmanagement.de/2021/12/29/the-importance-of-asset-management/ their bottom line. Lack of a solid process for managing risk and assets could leave companies vulnerable to fines from regulators or lose profits due to inadequate planning.
The management of risk and assets is confronted by a range of issues.
Unawareness of what an organization’s assets can do – For example employees may not be aware that a certain piece of equipment is able to perform a function beyond the scope of its design or to make it operate at its maximum efficiency. This can lead the asset to be underutilized and have lower ROI over its lifetime. This can be minimized by ensuring employees are properly educated to know the capabilities of an asset and how to utilize them in a way that is appropriate.
Lack of a robust risk management processes – Since the financial crisis, a lot of companies have not had the time to think about strategic risk. This has resulted in inadequate risk management strategies, ineffective risk assessments and missed opportunities to optimize the value of an organization’s assets.
Third-party risk – From cyber security to integrity of data, and reputational damage could have huge implications for an organization. To minimize the risks associated with this type of threat an effective vendor vetting procedure should be established with failsafe procedures in place to ensure each vendor is properly vetted.