What role does risk assessment play in asset management?

Risk assessment is a crucial component of asset management as it helps identify vulnerabilities associated with various assets. By systematically analyzing potential threats and the likelihood of their occurrence, organizations can understand where their assets might be at risk. This process provides insights into how to secure these assets effectively, ensuring that appropriate measures are in place to mitigate identified risks.

In the context of managing assets, risk assessment is not about eliminating all risks; rather, it is about understanding and managing them appropriately. It does not specifically dictate asset ownership or oversee legal compliance, which are separate considerations in asset management. Therefore, its primary value lies in the identification of vulnerabilities and the establishment of security practices that protect the organization's assets from potential threats.