RISK-BASED ASSET MANAGEMENT

In many organizations, there is a lack of transparent decision-making processes. This makes it difficult to explain choices, resulting in insufficient internal support for decisions and frustration. Organizations create insufficiently transparent value, which is a missed opportunity.

DECISION-MAKING needs to be well-founded and TRANSPARENt

The greater the value of assets, the greater the impact on the environment and stakeholders. In modern society, the influence of stakeholders on the policy and strategy of organizations, particularly on asset portfolios, is growing. Citizens are becoming more vocal, and transparency in governance and the ability to explain the decisions made is becoming increasingly important for organizations in both the public and private sectors. The performance of assets, the associated safety and environmental impact, and plans for modifications or expansions can no longer be autonomously determined by organizations. Decision-making must be transparent to make the value of assets visible to stakeholders so that this value can be better compared to other values, especially when resources become scarce and there are more projects than means.

Decisions about adjustments, expansions, or divestments of assets in the asset portfolio must be well-founded with regard to performance, costs, and risks, naturally in multiple scenarios and over the full lifecycle. It must be clearer what the impact of the decision is on the value delivered with the assets. This requires asset management decision-making that is based on a risk assessment of the company values within a clear structure and linked asset management roles (governance).

Tools such as a risk framework, decision-making criteria used to assess proposals, scenario models, and their calculation, and a setup for a business case or multi-criteria analysis are then indispensable. But they must be placed in a structure that everyone understands, is workable, and actively directed by the management. This way, the (new) approach is also embedded in the organization.

Need help shaping risk-based decision-making in a clear process? We can help you.

THIS resulTS IN:

• Top management has insight into both risks and value and can use this in determining strategy and in decision-making.
• A clear governance structure linked to roles and functions that contribute to good and transparent risk-based decision-making.
• Demonstrable value creation for stakeholders.
• Fewer surprises in operational and financial performance due to asset risks and process risks coming together in integrated decision-making.
• More opportunities to delegate asset management decision-making to tactical and operational levels, rewarding and valuing the expertise of employees at those levels.
   

IES ENGINEERS HELP YOU GAIN INSIGHT

A collaboration with IES? We work with you to establish a common goal based on your requirements, and our approach is always tailored to your unique situation. Our philosophy emphasizes the importance of the people behind the technology, and we aim to achieve lasting change within your organization by prioritizing the human element.

TO PROVIDE THIS SERVICE, WE USE:

• Business values-risk matrix
• Risk framework
• Establishing decision-making criteria
• Business case / Multi-criteria analysis
• Criticality analysis
• Asset Health indicators
• Long-term investment and maintenance plans

Want to know more? Feel free to contact Randolph Smit for further information.
Contact us today.