The Energy & Resources industry is highly asset-intensive, and the companies who manage them are frequently confronted with compliance issues in the form of environmental, safety and safety concerns as well as older assets, maintenance issues and budget constraints. Each of die vorteile der nutzung eines datenraums fur due diligence these aspects could have an impact on the operational, external and strategic success of an organization.
A comprehensive risk management plan is crucial to protect against these risks and ensuring that a business can continue to meet the needs of its customers. This article will highlight the key areas of asset and risk management:
Counterparty risk management is a technique that focuses on ensuring key relationships, like prime brokers and counterparties to derivatives clearing banks, and custodians are creditworthy. It also has failsafe procedures that are designed to guard against reputational and financial damage if the partners fail. This is accomplished by vetting vendors and ensuring that the approval process does not only apply to the vendor, but also the service they provide.
Market risk is a possibility of loss in the value of portfolios. Both asset managers and risk management are concerned about this, but from different perspectives. Portfolio managers manage their exposure to markets to reduce unintentional betting on markets and other elements, while risk management focuses on regulating crowded trades leverage, liquidity, expected volatility and cash flow.
A sound asset and risk management program will aid an organization in avoiding unexpected problems and maximize the use of its assets. The three lines of defense governance framework is an effective method of identifying and reducing the risks that can affect the performance of an organization.