Asset management is the management of assets of a company or individuals in a sustainable yet cost-effective manner.
The job is performed by a group of professionals from the field of finance. Asset management is a systematic process that follows a set of principles to achieve the desired results.
It involves the identification and management of risks associated with the assets that may arise from the utilization and ownership of the assets.
This allows the owners to be prepared to counter any risk that could occur in the future.These principles are deployed in the management of assets of all types by professionals of the field.
Given its wide range of benefits, many project stakeholders seek asset management companies to look after their assets. These companies must be experts in the field to perform this challenging task.
They work by deploying a well-planned working schedule to meet the set deadlines. Besides, appropriate action plans are devised to prevent possible risks that may severely affect asset lifetime.
Although there are several types of asset management, seven of the most important ones are:
Financial Asset Management.
Financial asset management is the primary most type of asset management that deals with the management of clients’ investments, funds, and accounts.
The asset managers act by managing all these assets in a way that ensures profitability as well as client satisfaction.
Professional asset managers keenly look into every aspect before taking any step. They study the asset details, including the count and value of each asset and their expected life cycle.
Enterprise Asset Management
The word enterprise refers to large scale businesses or companies. These include large scale manufacturing units involving machinery and expensive equipment.
Therefore, asset management enables asset stakeholders to enhance these assets’ performance, reducing their operational cost.
Besides, proper asset management of such enterprises also allows asset owners to have a higher return of profit. Enterprise asset management involves planning and tracking of the required asset maintenance activities.
Infrastructure Asset Management
Infrastructure asset management is all about planning and designing, as well as maintenance of infrastructural assets.
It includes new buildings and renovation of the older ones to make sure their resilience and sustainability.
The asset managers perform the job by formulating a systematic work plan. The action plan is devised, keeping in view all aspects and factors affecting the infrastructure asset.
The strategies help stakeholders sustain their infrastructural assets such as water treatment facilities, sewer lines, roads, utility grids, bridges,
Public Asset Management.
Public asset management is similar to infrastructure asset management. It is the discipline of asset management that looks after building and maintaining public infrastructure.
The public support structures include infrastructures such as schools, public spaces, railways, roads, bridges, waterways, electric grids, parks, and storage ports.
IT Asset Management
An IT asset is a system or hardware that helps support business activities. The IT asset management process, on the other hand, involves the gathering of relevant information and statistics that could assist in making business decisions.
The decisions may include analysis of a business’s profits, the purchases made, and other significant aspects.
To aid the entire process of IT management, asset management companies have brought about the software application.
These apps record business-related analytical data, recording vital information of the organization.
Besides, Information technology asset management also supports the lifecycle management and IT service management (ITSM) process.
Fixed Assets Management
Fixed assets are classified as everlasting assets. These assets increase in value over time, and stakeholders plan not to sell or trade anytime soon.
Thus, fixed asset management is needed to manage them in a sustainable yet profitable way.
The process involves the tracking and monitoring of assets like vehicles, computers, and machinery. Moreover, it oversees the assets at different locations, arranging the necessary steps for its proper maintenance.
Apart from this, fixed asset management maintains a record of all retired, sold, stolen, or lost assets.
This allows organizations to keep track of their assets, hence assisting the process of auditing.
It also enables asset stakeholders to have complete control over the assets under possession and make intelligent choices for new business ventures.
Digital Asset Management.
Digital assets are files like music, photos, videos, and other media with rights over their usage. It means that it depends entirely on the owner of the digital asset, whether he allows others to use the asset.
With the advent of social media, digital assets grew exponentially as more people got attracted to the field.
Given the rapid rise, Digital asset management became essential as never before. The efficient process allowed stakeholders to manage and organize large amounts of digital assets in a centralized location.
It not only increases the security, organization, and but also the searchability of digital assets. The system expands the content storage while maintaining quality standards too.
Most importantly, digital asset management empowers the asset owners by letting them focus on what really would bear profitability.