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Asset management and asset management system

Asset management: advantages and practical implementation

In today's business world Assets play a decisive role. They can be of a physical, financial, intangible or operational nature and are invaluable for the long-term success of a company. This is exactly where asset management comes into play.

The introduction of a Asset management and asset management systemorganisations can identify, evaluate and manage assets in a structured manner. This comprehensive approach helps companies to use their resources efficiently, minimise risks and achieve long-term goals.

Key information on asset management

  • The Term "asset" can be used in different contexts, e.g. in the areas of finance and investment, company valuation, information security, asset management, IT and technology or property. Depending on the context, it is also referred to as Enterprise value, asset value, assets or Object.
  • The Objective of asset management is to efficiently manage and optimise certain assets of an organisation in order to achieve specific financial or business objectives.
  • Assets are in various ISO norms and standards relevant, particularly with regard to information security and asset management. The ISO 55000 series deals with asset management in organisations.
  • Key components of asset management are the Structural analysis and protection needs assessment of assets. These serve as preparation for the risk management.
  • We recommend asset management in accordance with the PDCA cycle in one Asset management system. It can make sense to use a Asset management software to manage and monitor assets digitally and therefore more efficiently.

Content on asset management and asset management systems:

Asset management: definition, objectives and tasks

The effective management and protection of Assets is crucial to ensuring the financial health and long-term success of a company. Therefore, the Asset Management (asset management) is an important aspect of corporate governance, ensuring that assets are utilised, maintained and protected efficiently. This can help to minimise risks and maximise opportunities.

Definition of assets

The Term "asset" can be used in different contexts, e.g. in the areas of finance and investment, company valuation, information security, asset management, IT and technology or property. Depending on the context, it is also referred to as Enterprise value, asset value, assets or Object .

Using the example of an organisation, the term "Assets" to assets or assets. These assets are all the financial resources that the organisation owns and that are used to achieve its objectives and carry out its business activities. There are different types of assets in an organisation, including:

  • Tangible assets (physical assets): This includes buildings, machinery, vehicles, office equipment, inventories and other tangible assets used for the production of goods or the provision of services.
  • Financial assets: These include cash, bank accounts, securities, investments and other financial assets held by the company. These assets often serve as a liquidity reserve or for long-term investment.
  • Intangible assets: These include intangible assets such as patents, brands, copyrights, software licences and intellectual property. These assets have no physical value, but can contribute significantly to the company's competitiveness and success.
  • Receivables: These are amounts that the company has yet to receive from customers or other parties. Receivables can be trade receivables (from sales of goods or services) or other types of debt.
  • Operating assets: These include assets that are used specifically for the operation of the company, such as office furniture, computers, software and communication devices.

Definition and objective of asset management

The Asset ManagementAsset management refers to the process of strategically planning, organising, monitoring and controlling all the assets of a company or organisation. These assets can be physical, financial, intangible or operational in nature. The main objective of asset management is to use assets efficiently and economically, minimise risks and achieve long-term goals.

Asset management is relevant in various industries and sectors, including financial services, property, manufacturing, IT and many others. It is an essential part of corporate governance that helps to ensure the financial stability, efficiency and competitiveness of an organisation.

Definition of asset management system

A Asset Management System (AMS)An asset management system is a structured and integrated combination of organisational, human and technological resources used to effectively identify, record, value, track and manage assets. These assets can be physical, financial, intangible or operational in nature and are critical to an organisation's business operations and long-term success.

An asset management system can also include technological tools and software solutions that assist in collecting, tracking and analysing asset data. It serves to promote the financial stability, efficiency and competitiveness of an organisation by protecting assets, optimising their use and supporting strategic decisions.

An asset management system usually comprises

  1. Asset identificationThe clear recording and documentation of all assets of a company or organisation, regardless of their type or value.
  2. Asset valuationThe valuation and classification of assets based on their significance, value and role in the company.
  3. Asset tracking: The continuous monitoring and tracking of assets to ensure that they are utilised efficiently and remain in good condition.
  4. Risk ManagementThe identification and assessment of risks that could affect the assets and the implementation of measures to minimise risks.
  5. Maintenance and servicingThe planning and implementation of maintenance and servicing activities to preserve the service life and value of assets.
  6. Reporting and complianceThe preparation of reports on the condition of assets and compliance with legal and regulatory requirements.
  7. Optimisation and value retentionThe implementation of strategies to maintain and increase the long-term value of assets.
  8. Continuous improvementOngoing analysis and adjustment of the asset management system to ensure efficiency and effectiveness.

Advantages of asset management

Asset management offers companies a wide range of benefits and can help to increase efficiency, minimise risk and increase long-term success.

Through effective asset management, companies can ensure that their assets are optimally utilised. This leads to a Optimising the use of resources and thus to a better return on investment and to maximising the value of the company.

Asset management helps with the identification and Coping with risksthat could affect the company's assets. This can help to minimise financial losses and ensure business continuity.

By managing assets efficiently, companies can minimise Reduce operating costs. This can be achieved through better maintenance, servicing and utilisation of assets.

Asset management provides companies with data and insights into their assets that can be used for strategic planning and Decision making are helpful. It enables well-founded decisions on investments, maintenance and replacement of assets.

Compliance with regulations and legal requirements is crucial for the realisation of Compliance and legal conformity. Asset management helps to ensure that companies fulfil all relevant legal requirements and standards.

Asset management systems offer a Better transparency on the condition and utilisation of assets. This facilitates reporting and communication with stakeholders.

Effective asset management can be a competitive advantage The new system will be a key factor in the future, as it increases efficiency, improves the quality of services and strengthens risk management.

Overall, asset management can help to promote the long-term stability and success of a company by protecting assets, optimising their use and supporting strategic decisions.

Assets in standards and norms

Assets are relevant in various ISO norms and standards, particularly in relation to information security and the management of assets. These norms and standards are relevant in various industries and organisations and serve to protect and manage assets and minimise risks. Here are some ISO norms and standards in which assets play an important role:

This standard specifies requirements for the management of information security systems (ISMS). It deals with the identification of assets and the implementation of security measures to protect them.

This standard defines the principles and requirements for the management of assets, including financial assets, physical assets and intangible assets.

This standard provides guidance on business continuity management, including the identification of critical business processes and assets that are essential to business continuity.

This standard deals with the principles and guidelines for risk management, including the identification, assessment and monitoring of risks that may affect assets.

Although this standard is primarily aimed at quality management, it also requires the identification and control of assets that influence the quality of products or services.

This standard deals with the identification and management of environmental assets and their impact on the environment.

In BSI baseline protection, assets are divided into different categories, including information, systems, applications, buildings and personnel. This categorisation helps to identify and assess risks and define protective measures.

In its framework, the National Institute of Standards and Technology (NIST) defines assets as "information and technical assets". This framework emphasises the importance of identifying, protecting, detecting, responding to and recovering assets in the context of cyber security.

COBIT identifies assets as one of seven IT resource types. This helps to align IT management and IT governance to support business objectives.

ITIL deals with the management of IT services and treats assets as part of Service Asset and Configuration Management (SACM). SACM focuses on understanding and managing the relationships and dependencies between assets and IT services.

Whitepaper Managing assets effectively: advantages and practical implementation

Whitepaper Asset Management

In the white paper Managing assets effectively: advantages and
practical implementation:

  • Information on asset management as Prerequisite for an effective risk management
  • Notes on the Structural analysis as a top-down and bottom-up approach
  • Step-by-step explanation of the Protection needs assessment

Unfortunately this content is currently only available in German. Please feel free to contact us for more information.

Asset management as a prerequisite for effective risk management

Asset management is a Essential component of risk management in many organisations. In the context of risk management Assets as one of the main sources of risks and opportunities be considered. Integrating asset management into risk management helps to identify, quantify and manage the risks posed by assets. In this way, organisations can respond more effectively to potential threats and at the same time take advantage of the opportunities that can arise from their assets.

If asset management is regarded as a prerequisite for efficient risk management, then certain rules also apply to asset management. Legal framework:

The following paragraphs relate to risk management in Germany, particularly in the context of the German Administrative Offences Act (OWiG), the German Stock Corporation Act (AktG) and the German Limited Liability Companies Act (GmbHG). In summary, these paragraphs set out legal requirements for companies in Germany to ensure that they appropriate measures for risk assessment, control and management and thus also for the implementation of asset management as the basis for risk management implement. Failure to fulfil these requirements can lead to legal consequences, including fines and personal liability for the representatives of the executive bodies.

§ 30 OWiG (Administrative Offences Act):

§ Section 30 OWiG concerns the organisational obligations of companies, in particular corporations such as public limited companies (AG) and limited liability companies (GmbH). It states that the management of a company must take all necessary organisational measures to ensure that employees comply with the applicable laws and regulations.

§ 130 OWiG (Administrative Offences Act):

§ Section 130 OWiG deals with the personal liability of corporate bodies and representatives (e.g. board members of an AG or managing directors of a GmbH) in the event of administrative offences committed on behalf of the company. It stipulates that those personally responsible can also be punished if they have not prevented the offence or have not taken measures to clear it up.

§ Section 93 AktG (German Stock Corporation Act):

§ Section 93 of the German Stock Corporation Act (AktG) concerns risk management and the internal control of stock corporations. It stipulates that the Management Board of a stock corporation must set up and maintain an appropriate risk management system. This system is intended to ensure that risks within the company are recognised, assessed and managed.

§ Section 43 GmbHG (Limited Liability Companies Act):

§ Section 43 GmbHG relates to the duty of care of the managing directors of GmbHs. It requires managing directors to exercise the diligence of a prudent manager and to safeguard the interests of the company. This also includes the duty to implement a risk management system.

In accordance with Section 93 (1) sentence 1 of the German Stock Corporation Act (AktG) and Section 43 (1) of the German Limited Liability Companies Act (GmbHG), companies in Germany are obliged to set up and maintain an appropriate risk management system. Analysing and evaluating assets is an important prerequisite for identifying risks and opportunities.

§ Section 93 (1) sentence 1 AktG:

This section of the German Stock Corporation Act concerns the early identification of risks and risk management in stock corporations (AGs). It states that the Management Board of a stock corporation is obliged to take appropriate measures for the early identification of risks that could jeopardise the continued existence of the company. These measures must ensure that risks are recognised at an early stage and countermeasures can be taken in good time to ensure the financial stability of the company.

§ Section 43 (1) GmbHG:

This paragraph concerns the duties of managing directors of limited liability companies (GmbHs). According to this paragraph, the managing directors must take appropriate measures for the early identification of risks that could jeopardise the existence of the GmbH. Similar to Section 93 AktG in relation to AGs, appropriate measures must also be taken here to identify risks in good time and take suitable measures to minimise risks.

In both cases, the aim is to ensure the financial stability and continued existence of the company by identifying and effectively managing potential risks. The exact design of the risk management system may vary depending on the size of the company, industry and risk profile, but must comply with legal requirements and the specific needs of the company. Companies must ensure that they meet these legal requirements in order to minimise potential liability risks and protect the interests of their stakeholders.

The Federal Court of Justice (BGH) in Germany has emphasised the importance of an efficient compliance management system (CMS) in various rulings, particularly in the Connection with risk management of companies. An efficient CMS is crucial for preventing legal violations, recognising them at an early stage and responding appropriately. Here too Asset management as the basis for effective risk management.

  • Prevention of legal violations: An efficient CMS helps to identify risks of legal violations and minimise them through clear guidelines and training. This reduces the risk of legal problems that could arise from misconduct by employees or managers.
  • Early detection of risks: Through regular monitoring and reporting, a CMS recognises potential risks at an early stage. This enables the company to take proactive measures to mitigate these risks before they develop into more serious problems.
  • Reaction to legal violations: If, despite all preventive measures, a breach of the law occurs, an efficient CMS can ensure that the company reacts quickly and appropriately. This includes investigating the incident, taking disciplinary action and implementing corrective measures.
  • Liability minimisation: An effective CMS can help to minimise the liability of the company and its managers by demonstrating that appropriate steps have been taken to prevent and respond to breaches of the law.
  • Reputation protection: A well-established CMS helps to protect the company's reputation as it shows that the company acts ethically and complies with applicable laws and regulations.

Introduction of asset management according to PDCA

The realisation of the Asset management according to the PDCA cycle (Plan-Do-Check-Act) is a proven method to ensure that the asset management system is continuously improved and meets the needs of your organisation. It also enables the identification of problems and their timely resolution to ensure efficient asset management.

Below you will find the Steps to implement asset management according to the PDCA model:

  • Define clear goals for asset management in the company. What do you want to achieve? Which assets should be managed and what results are you aiming for?
  • Develop an asset management strategy and clear guidelines for the management of assets. Take into account the long-term goals of the company.
  • Identify the necessary resources, including technologies, training and employees.
  • Implement the asset management strategy and guidelines in the company.
  • Record all relevant assets and carry out a comprehensive inventory.
  • Train employees on the new asset management processes and guidelines.
  • Implement technologies and tools to support asset management, such as asset management software.
  • Set up mechanisms for continuous monitoring and evaluation of assets. This can include regular inspections, maintenance schedules and the collection of asset data.
  • Conduct regular audits to ensure compliance with asset management guidelines.
  • Analyse the performance of the asset management system and compare it with the previously defined targets and KPIs.
  • Based on the results of the review and analysis, you take measures to improve the asset management system.
  • Adapt your strategy and guidelines to eliminate weaknesses and increase efficiency.
  • Implement the identified improvements and ensure that they are realised effectively.
  • Communicate the measures taken to the relevant employees and ensure that they are trained and informed.

Structural analysis of assets

The Structural analysis of assets is an important process for obtaining a comprehensive overview of the assets of a company or organisation. The Aim of the structural analysis is to provide information about all company values, such as processes, applications and IT-systems and prepare them.

The structural analysis of assets can be based on two main approaches: the Top-down approach and the Bottom-up approach. Both methods have their own advantages and disadvantages and can be applied depending on the specific requirements and objectives of a company or organisation.

The choice between top-down and bottom-up depends on the objectives of the structural analysis and the resources available. In practice, companies can use a combination of these approaches to carry out a balanced and comprehensive analysis of their assets.

Top-down approach to structural analysis

In the top-down approach, the structural analysis starts at a higher level and works its way down to the individual company assets. This means that a general classification or categorisation of assets is carried out first, which are grouped at a higher level. Then these groups are further subdivided into subclasses until finally individual assets are identified. Here are some features of the top-down approach:

  • Strategic orientation: This approach often starts with the organisation's strategic objectives and works from there to ensure that assets are valued in line with the business objectives.
  • Efficiency: The top-down approach can be efficient as it deals with assets in larger groups and enables a faster overview assessment.
  • Simplified overview: It provides a simplified overview of the assets, which can be useful when quick identification of the most important assets is required.

Bottom-up approach to structural analysis

With the bottom-up approach, the structural analysis begins at a granular level by identifying and evaluating individual assets. These assessments are then aggregated upwards to create an overall view of the assets.

  • Detail-orientation: This approach is particularly detailed and offers a comprehensive view of each individual asset.
  • Accuracy: The bottom-up approach can provide precise insights into individual assets, which can be important when it comes to defining specific protective measures.
  • Time-consuming: As it is based on a detailed analysis of each asset, this approach can be more time-consuming than the top-down approach.

Assessment of protection requirements for assets

The Protection needs assessment is an important process in the area of information security and asset management, in which companies assess the value and protection requirements of their assets. This includes physical, financial, intangible and operational assets.

The protection needs assessment helps companies and organisations to adequately protect their assets and ensure that the security measures taken cover the actual protection needs of each individual asset. This is crucial to minimise risks, guarantee data protection and ensure business continuity.

Assets are assets that are of value to a company or organisation. This can include a wide range of assets, including physical assets such as buildings, equipment and vehicles, financial assets such as cash and securities, intangible assets such as intellectual property and trade secrets, and operational assets such as data, information systems and supply chains.

The first step in the protection needs assessment is to identify all relevant assets of a company or organisation. This requires a comprehensive inventory and documentation of all assets.

Asset classification refers to the categorisation of assets into different classes based on their common characteristics or properties. This process helps to group assets with similar protection needs or characteristics. Classification enables faster and more efficient management of assets as it allows general protection policies to be applied to a group of assets rather than looking at each individual asset separately.

Examples of asset classes could be: "software", "hardware", "servers", "databases", "rooms", "management processes", "core processes", etc.

The categorisation of assets refers to the merging of assets into a specific category. Categorisation allows companies to determine exactly which protective measures are required for individual assets.

Examples of categorisations could be: "information technology", "processes", "infrastructure", etc.

A protection needs assessment is carried out on the basis of the asset valuation. This determines the protection requirements for each individual asset. This depends on factors such as confidentiality, integrity and availability.

  • Confidentiality: The aim here is to ensure that sensitive information and assets are protected from unauthorised access. This can be relevant for business secrets, personal data and other confidential information.
  • Integrity: Integrity refers to ensuring that assets are protected against unauthorised changes or manipulation. This is particularly important for data and systems.
  • Availability: Availability refers to ensuring that assets are always available when they are needed. This is crucial for business operations and can be extremely important for critical systems and services.

Based on the protection needs assessment, protective measures are identified and implemented to ensure that the assets are adequately protected. This may include the introduction of security policies, access controls, encryption, monitoring and other security measures.

Robin Data ComplianceOS® Field Asset Management

Manage your organisation's assets in Robin Data ComplianceOS®. Evaluate assets regularly with regard to their protection needs, confidentiality requirements and potential risks. Take protective measures and organise responsibilities.

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These organisations should introduce asset management

Asset management is relevant in different types of organisations and industries, especially in companies and institutions that own and use assets. Here are some types of organisations that should benefit from asset management:

Companies of all sizes and in all sectors should practise asset management, as they usually own a variety of assets, including physical, financial, intangible and operational assets. Asset management helps to utilise and protect these assets efficiently.

Banks, insurance companies and other financial institutions manage significant financial assets, and asset management is critical to minimising risk and maximising returns.

Companies that operate critical infrastructures such as power grids, water and wastewater systems, telecommunications and transport infrastructures must practise asset management to ensure the reliability and availability of these systems.

Energy supply companies, including electricity and gas suppliers, have extensive physical assets in the form of power plants, transmission lines and distribution networks that need to be managed and maintained.

Companies that invest in real estate or own real estate portfolios need asset management to maximise the value of their properties and minimise vacancies.

Information technology organisations need to perform asset management for their hardware and software assets to ensure they are used efficiently and meet business needs.

Cities, municipalities and public institutions such as schools and hospitals manage a wide range of assets, including buildings, infrastructure and equipment.

Companies in the logistics and transport sector have vehicles, warehouses and stocks that need to be managed efficiently to keep operations running smoothly.

Manufacturers have physical assets such as production facilities, machinery and inventories that need to be managed as part of the production process.

Hospitals and healthcare organisations manage medical equipment, buildings and intangible assets such as patient data that need to be protected and managed efficiently.

Asset management software

You will find an Asset management software is a crucial tool for the efficient management and monitoring of assets in companies and organisations and can help to manage assets efficiently, minimise risks and create long-term value for the company.

It should Real-time tracking and monitoring of assets to ensure that appropriate protective measures are implemented and risks are demonstrably mitigated. The software should provide extensive Reports provide the tools to report on asset health and performance metrics. The asset management software should be able to identify and assess risks associated with assets in order to take proactive measures to minimise them. Risk minimisation to enable the use of the system. It should offer functions to ensure that all relevant legal and regulatory requirements and thus the Compliance must be adhered to. In addition, the allocation of different User authorisations to ensure that only authorised persons can access certain data and functions.

Video asset management and protection needs assessment

Watch the video Assets management and protection needs assessment:

What are the requirements for effective asset management and how can you solve them with Robin Data ComplianceOS?

Every organisation has certain values - so-called assets. These include infrastructure, IT systems, but also value-adding processes and expertise. These assets must be identified by those responsible and regularly subjected to a protection needs assessment in order to be able to take effective protective measures. The resulting asset management is an important prerequisite for effective risk management and an essential component of compliance management.

The video is a recording of the Robin Data Hacks from 9 October 2023. The Robin Data Hacks take place online and participation is free of charge. Further information, dates and the opportunity to register.

Unfortunately this content is currently only available in German. Please feel free to contact us for more information.

Conclusion

Asset Management is essential in today's business world. Companies and organisations, regardless of their size or industry, have assets that need to be protected, optimised and used efficiently. Asset management makes it possible to do just that.

The Structured management of assets helps to increase efficiency, maintain and enhance value, minimise risks and ensure that legal and regulatory requirements are met. An asset management system that enables clear identification, valuation, tracking and management of assets is a valuable tool for achieving these goals.

In a world where assets are critical to a company's success, effective asset management can make all the difference. It creates a solid foundation for financial stability, competitiveness and long-term value creation. Rely on asset management and asset management systems to put your company on the road to success.

Manage your assets with Robin Data ComplianceOS®

The Asset Management compliance field provides you with digital support for the continuous implementation of asset management in your company. We would be happy to show you in a personal online appointment how you can implement the requirements for an effective asset management system with Robin Data ComplianceOS®. Gain an insight into the structure and range of functions and ask your questions from the user's perspective. Book a short introductory meeting with us first.

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Caroline Schwabe
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