Asset and Risk Management for Energy and Resources Companies

In every industry, it’s critical to have an effective asset and risk management process in place. This is particularly true in the financial sector, as insurers utilize the premiums received from policyholders to invest in assets in order to generate revenue and maintain their solvency. Assets can be volatile, which is why it’s essential for investors to be able to manage their investments effectively and know when to take on more risk or risk less to achieve their objectives.

A well-designed asset and risk management program is essential for energy and resource companies to protect assets and increase ROI over the course of their lifespan. This includes finding, assessing, and addressing the risks associated with assets owned by an organization, including tangibles like equipment and buildings as well as intangibles, such as intellectual property and data.

A business should first identify and name all its assets. In the ideal scenario, each asset would be assigned a named owner who is accountable and has authority over the asset. These individuals are aware of the risks associated with their assets and are able to reduce those risks effectively. The risk management department should collaborate with these stakeholders to identify potential threats and vulnerabilities.

The company can then decide on the most risky risks to be a priority. This is usually based on the likelihood of the risk arising and its impact on the business. The highest priority risks need the greatest security implementation, attention and investment. Other risks must be addressed in accordance with the company’s operational requirements and compliance with regulatory requirements.

asset and risk management