To maximize the value of their physical assets and make them provide the highest ROI they must have an understanding of both their assets and the risks involved. Without a thorough understanding of the risk environment, businesses may make unfounded decisions that could harm their bottom line. Lack of a solid asset and risk management process can expose businesses to costly fines from regulators or losses due to insufficient plan for the unpredictable.
Management of risk and assets is confronted by a range of challenges.
Unawareness of what the organization’s assets can do – For example employees may not be aware that a certain piece of equipment is able to perform a job beyond its intended range or to operate it with maximum efficiency. This could cause the equipment to be underutilized and have an unsatisfactory ROI over its lifetime. This can be mitigated by ensuring that employees receive sufficient training to be aware of the capabilities of an asset and how to utilize it in a responsible manner.
Lack of a robust process for managing risk – The constant demand for compliance that have flooded into the industry since the financial crisis has https://expertalmanagement.de/2021/09/01/top-horrible-features-to-avoid-when-buying-a-laptop-for-play-or-work caused many companies to have little time to consider strategic risk considerations. This has led to inadequate risk management strategies, incorrect risk assessments, and missed opportunities to maximize the assets of an organization.
Third-party risk – From cyber security to integrity of data and reputational damage can have significant implications for a business. To reduce the risks associated with this type of threat the need for a robust process for vetting vendors should be implemented with failsafe procedures in place to ensure each vendor is properly vetted.