The Energy & Resources industry is highly asset-intensive, and the companies who manage them are frequently faced with regulatory compliancy as well as environmental and safety threats, old assets, maintenance issues, and budgetary limitations. Each of these aspects can possibly have a significant impact on the organization's operational as well as https://expertalmanagement.de/ its external and strategic success.
A comprehensive approach to risk management is crucial to safeguard against these risks and to ensure that businesses can keep up with the demands of its customers. This article will highlight the key areas of risk and asset management:
Counterparty risk management is focused on ensuring that key relationships (such as prime brokers derivative counterparties, clearing banks and custodians) are creditworthy and includes the implementation of security measures that guard against reputational and financial damage from the failure of these partners. This is accomplished by vetting suppliers and ensuring that the approval process extends not just to the vendor but also to the specific service they offer.
Market risk is the possibility for a decrease in value of the portfolio and is a problem that asset managers and risk managers deal with, but from slightly different perspectives. Portfolio managers manage their market exposures to limit unintentional bets on markets and factors, while risk management focuses on regulating crowded trades liquidity, leverage, volatility and cash flow.
A robust asset and risk management program is essential to preventing unexpected issues and maximizing the value of the assets of an organization. The three lines of defense governance framework is a successful method of identifying and reducing the risks that can affect the performance of an organization.