What are the principles of asset management?
Asset management principles
These Asset Management Principles are briefly characterized:
“Failure Modes” – not all assets fail in the same way. “Probability” – not all assets of the same age fail at the same time. “Consequence” – not all failures have the same consequences.
Detect, Diagnose, and Prevent: The Three Pillars of Effective Asset Condition Assessment. Efficient asset management is crucial for facility managers—especially those with large portfolios spread over a wide geographical area.
The Key Principles of Asset Management
Look at the big picture of assets. Systematic: methodical approach leading to consistent, repeatable, and auditable decisions. An effective management system that decisions making is done with data considered and decisions could be made again on the same parameters of data.
Strategic asset management (SAM) is a top-down equipment management framework for long-term maintenance and operation planning. This approach prioritizes long-term physical asset investments while balancing capital and operational expenditure from a total expenditure (TOTEX) standpoint.
Here are some of the most common types of asset management: Enterprise asset management: enterprise asset managers work with organisations to maintain their fixed assets. They often work with maintenance and operations. Public asset management: public asset management involves the maintenance of public institutions.
In 2007, when ITIL v3 was released, the process was expanded; and the name was changed to Service Asset and Configuration Management (SACM). With the release of ITIL 4, the SACM process was broken into two separate practices, IT Asset Management (ITAM) and Service Configuration Management.
For something to be considered an asset, a company must possess a right to it as of the date of the company's financial statements. Assets can be broadly categorized into current (or short-term) assets, fixed assets, financial investments, and intangible assets.
Level 1 assets are those that are liquid and easy to value based on publicly quoted market prices. Level 2 assets are harder to value and can only partially be taken from quoted market prices but they can be reasonably extrapolated based on quoted market prices. Level 3 assets are difficult to value.
An asset management plan should clearly show how and when an organisation will maintain, upgrade, and replace assets over time. This helps to avoid costly surprises, such as unexpected maintenance or asset replacement costs.
What is an asset management model?
What is Asset Management Modeling? Asset management modeling is a complete system for managing the lifecycle of controlled assets. Asset management models use various criteria to maximize performance, efficiency, and resources.
An asset management plan outlines your company's strategy to maintain, develop, and operate assets in the most cost-effective way. It includes all the activities and resources required to acquire, employ, maintain, replace and dispose of the vehicles, equipment and machinery necessary for your business operations.
The goal of any Asset Management process is to use a system-wide approach in order to improve operations and make the organization more effective by considering the full investment and life cycle of assets.
- Planning.
- Procurement/Acquisition.
- Operation and Maintenance.
- Disposal/Archive.
The term asset management is synonymous with wealth management. As a financial service provider, an asset manager manages the assets of his or her clients.
Broadly, this process involves “putting money to work” by buying, holding, and selling financial assets with the potential to achieve a client's investment goals. Examples of financial assets include stocks, bonds, commodities, shares in private funds, and more.
| Company | Forbes Advisor Rating | Standout feature |
|---|---|---|
| Asset Panda | 4.2 | Manage both fixed and IT software assets |
| ManageEngine AssetExplorer | 4.0 | Manage hardware and software |
| MMSOFT Pulseway | 3.9 | Remote asset monitoring with a feature-rich mobile app |
| GoCodes | 3.8 | Track tools, equipment and consumables |
Keeping track of assets is one of the most common asset management challenges. The asset is moved from one location to another, increasing the likelihood of theft and misplacement. Since assets like heavy equipment are expensive, losing or misplacing them may hamper daily operations and reduce productivity.
Techopedia defines asset management software as “a dedicated application which is used to record and track an asset throughout its lifecycle, from procurement to disposal.
When we speak about assets in accounting, we're generally referring to six different categories: current assets, fixed assets, tangible assets, intangible assets, operating assets, and non-operating assets.
What are the three best assets?
Your three greatest assets are your time, your mind, and your network. Each day your objective is to protect your time, grow your mind, and nurture your network.
Assets are things you own that have value. Assets can include things like property, cash, investments, jewelry, art and collectibles. Liabilities are things that are owed, like debts. Liabilities can include things like student loans, auto loans, mortgages and credit card debt.
Historically, the three main asset classes have been equities (stocks), fixed income (bonds), and cash equivalent or money market instruments. Currently, most investment professionals include real estate, commodities, futures, other financial derivatives, and even cryptocurrencies in the asset class mix.
Your 401(k), and any other retirement accounts, are financial assets. These are portfolios in which you hold securities and investment products that have either realized or potential value. This makes your 401(k) portfolio an asset in your name as long as you own the account and as long as it has a positive balance.
Largest asset managers worldwide 2023, by value of assets
The ten top asset managers worldwide as of November 2023 all had assets under management worth more than one trillion U.S. dollars. However, the leading firm - New York City-based BlackRock - managed assets much higher than this.
