Asset management is a branch of management that seeks to safeguard an organization's assets or protect its assets from loss. Assets are those belongings and accounts receivable that have been purchased, secured, financed, or lent by an organization. Assets may include cash, accounts receivable, accounts payable, and intangible assets. Managed asset management is a process of making financial decisions with the aim of protecting assets or minimizing the risk of loss by categorizing assets into types.
The majority of companies today rely on asset management solutions to help them categorize their assets into several categories or to help them evaluate and monitor their risks. The categorization is usually done based on the asset type, for example, fixed assets, information technology assets, investments, and fixed amortization debt obligations. However, sometimes the categorization is done on the basis of the individual asset, such as plant and equipment. The asset manager will then determine what specific actions need to be taken to protect or preserve the asset in question. This might include selling the asset, liquidating it, destroying it, and/or transferring it to an entity that can take over its responsibilities. When an asset is transferred, the responsibility of that asset usually transfers as well, whether or not that transfer is part of the company's asset management solutions process.
While all these options are viable methods of protecting and managing assets, there are times when a company must face the reality of total loss. When assets must be destroyed or transferred, asset management solutions are needed that allow for that possibility. One way in which this can be achieved is through asset administration. In asset administration, the manager will use legal documents and auction sales to aid in the sale or transfer of assets. Legal action is only one form of asset administration; other methods of asset management solutions include estate planning, public record management, asset control, creditor engagements, and bankruptcy.
Another form of asset management solutions includes protection plans. These are typically utilized by companies that do not have knowledge in the area of asset management. A protection plan might involve insurance, banking, or any number of other possible forms of institutionally based security measures. However, no matter what form of security protection is selected, companies seeking asset management solutions will first need to determine what they plan to do with the assets in question.
If a business owns a vast amount of intellectual property, asset management solutions are often required. This type of asset management is known as intellectual property management. For example, a corporation may own a vast array of books, inventions, and technological information that would be invaluable to others. Such information might also make the products and/or services that the corporation sells much more valuable to potential customers. Find out more details here.
Other common types of assets that require management are goodwill. Goodwill is simply the value of the company's future goodwill. For example, if a business owns a manufacturing plant that will create millions of dollars of goods over the next ten years, that company should be concerned with asset management. On a smaller scale, a company might be concerned with the asset that has the potential to provide the owner with income for decades to come. Regardless of what type of asset management system is chosen, the important thing to keep in mind is that the proper asset management solution will ensure the long-term profitability of a company. Get to know more at www.e-wasteonline.com.
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