The Energy & Resources industry is asset-intensive, and the organizations who manage them are frequently confronted by regulatory compliance, safety and environmental threats, ageing assets, maintenance issues and budgetary restrictions. All of these factors can potentially have a large impact on an organization’s internal successful external, strategic and internal success.
A comprehensive strategy for risk management is essential to guard against these risks and ensure that a business will remain in a position to meet the needs of its customers. This article will highlight the key areas http://www.expertalmanagement.de/2023/06/26/positive-effects-based-on-data-room-providers/ of asset and risk management:
Counterparty risk management is focused on ensuring that the relationships with key players (such as prime brokers derivative counterparties, clearing banks and custodians) are creditworthy, and includes the implementation of failsafe procedures that protect against financial loss or reputational damage from the failure of these partners. This is done by vetting the vendors and ensuring that the process of approval extends not only to the vendor, but also to the specific service they provide.
Market risk is a potential decline in the value of a portfolio. Asset managers as well as risk management are concerned about it, however from different perspectives. Portfolio managers manage their exposure to markets in order to minimize unintended bets on market conditions and other variables and risk management focuses on managing crowded markets, liquidity, leverage, volatility, and cash flow.
A solid asset and risk management plan is essential for avoiding unexpected challenges and maximizing the value of an organization’s assets. The three-line governance framework is an effective instrument for identifying and minimizing the risks that could impact the performance of an organization.