To optimize their physical assets and to ensure they yield the highest ROI, companies must have a firm understanding of their assets and the risks they pose. Businesses can make poor choices when they don’t have a good understanding of the risks. This can end up affecting their bottom line. A lack of a robust process for managing risk and assets can expose businesses to costly regulatory fines or lose profits because of insufficient plan for the unpredictable.

The most frequent and significant problems with the management of risk and assets are:

Unawareness of the capabilities of the assets of an organization – For instance, employees might not be aware that an item is able to perform a function that is not within its intended range or how to operate it at its highest efficiency. This could result in under-utilization of the asset and reduced ROI throughout its lifespan. This can be mitigated by ensuring that employees receive adequate training to comprehend the capabilities of the asset and how to use it appropriately.

Insufficiently developed processes to manage risk – The constant stream of compliance requirements that have flooded into the industry since the financial crisis has left many companies with a lack of time to consider strategic risk factors. This has led to inadequate risk strategies, inaccurate risk assessment methodologies and missed opportunities to improve the performance of an organization’s assets.

Third-party Risk – From cyber-security to integrity of data, and reputational damage can have serious consequences for an organization. To reduce the risk of this kind the need for a robust vendor vetting process must be implemented with failsafe procedures in place to ensure every vendor is properly vetted.

https://expertalmanagement.de/2021/12/29/the-importance-of-asset-management/