When it comes to risk management, businesses may consider incorporating an Enterprise Risk Management software solution. Many categorise risk management into five key areas, including market and liquidity risk and counterparty, model, operational, and technology risks. The central purpose of such a solution is to help decision-makers form informed decisions. However, instead of investing in a software solution that exclusively deals with asset risk management, a company would find it much more feasible to purchase a more compact solution that wholly deals with enterprise assets. In this regard, including an asset risk management module in an Enterprise Asset Management (EAM) is a popular option. Keep reading to know why.
Four Reasons Why You Should Include an Asset Risk Management Tool Into Your Eam Solution
An EAM solution’s primary role is to monitor and prevent anomalies in assets used in a company to eliminate downtime and reduce overall finances and waste generated. Risk management focuses on a business identifying, analysing and curtailing any forms of threats towards a company’s finances. Such risks could be due to various factors, including legal, technical and managerial issues that had resulted in the organisation having to incur exorbitant expenses. Here are seven ways how an asset risk management tool can help you if it is in your EAM solution:
Eliminating Risks Associated With Maintenance
Considering that the entire point of an EAM is to monitor the health condition of each asset, having a risk management module helps managers to know how to budget their finances. For instance, all assets require routine maintenance. However, no two assets will ever be the same. Despite this, in a traditional setting, a manager would schedule maintenance on a set a date for a group of assets believing that it is done to keep them in their best condition. In reality, however, every time an asset is put for maintenance unnecessarily, it decreases its lifecycle. Thus, by allowing the EAM software solution to assess which date it needs maintenance, a company can simply budget their finances for each month based on such factors. This will enable factories the flexibility to prepare and collect finances for maintenance and ensure it is done in the correct period. Equipping a risk management tool to an EAM allows managers to prioritise maintenance and schedule them for the right time.
Preventing Risks
A powerful EAM solution will include asset failure predictive analytical tools for companies to make intelligent decisions. EAM solutions made by reputed vendors will incorporate artificial intelligence (AI) and machine learning (ML) tools in their solution, making it easy to process large chunks of data in an organisation. Thus, the software will be able to forecast possible asset anomalies. Repairing a broken asset can be extremely costly and lead to a business suffering other disadvantages, such as increased downtime and incurring losses in sales. However, the asset failure predictive analytical tool infused into the EAM solution can detect issues in assets at their most initial stages. Hence, the moment there is a change, it will be recorded and warned. Thus, organisations will be able to understand what factors have led to and could in the future lead to the deterioration of the asset. This way, measures can be taken to curtail and remove the risk. As a result, asset risk management helps to remove future risks from ever forming.
Eliminating Risks Associated Regularity Compliances
Asset-centric companies have specific legal requirements and regulatory compliances to ensure the assets meet industry standards. These standards have been implemented not only to help a company guarantee the quality standards of its products but also to safeguard the working environment. This could be ISO 31000, COSO ERM Framework or other country-specific standards. EAM solutions are generally equipped with certain inbuilt functions that take note to assess whether each asset meets such standards. A typical software solution will regularly check the asset condition against the regulatory standards and report to you effectively so that repairs or maintenance can be carried out.
Asset Insurance Policy Management
When an organisation invest in assets and purchases them in bulk, it is essential to have a record of the insurance policy for each asset. This allows corporations to claim money when repairs or maintenance is done or to replace an asset for a lower cost when an asset completely breaks down. The nature of the insurance policy differs according to the asset and could also be subject to a specific expiration period. By incorporating all such information in an EAM solution, all documentation relating to assets can be organised. When the asset risk management module is operated, and there happens to be an issue with the lifecycle of one asset, an EAM solution would allow you to instantly access the respective insurance policy for that asset.
A Must-Have Feature For Asset-Centric Companies
If you are an asset-centric company implementing an EAM solution will be very beneficial. In choosing which solution is best for you, one of the most critical factors you will have to consider is whether it includes an asset risk management module. From monitoring the condition of your assets to scheduling maintenance and preventing risks, the risk management module keeps you on your toes whenever a malfunction or potentially could happen. Increase yield, decrease downtown, and save overall finances, all with a compact EAM solution.
