Asset Management Policy

During its life cycle, every asset goes through five main stages: planning, acquisition, use, maintenance, and disposal.

What is asset management?

Asset management is maintaining, modernizing, and operating physical assets. It is obtaining, labeling, documenting, and ultimately disposing of equipment. The basic principles of asset management are:

• Determining the financial value of the asset and potentially maximizing the possible return;
• assessing the risks associated with asset maintenance;
• calculating the asset's expected life and useful life, and planning for its modernization, replacement, or disposal. 

Definition of asset protection policy

Asset protection is defined as policies and procedures that assure the prevention or timely detection of unauthorized acquisition, use, or disposal of company assets.

Asset management policy is a comprehensive, high-level document that:

• provides a framework for managing and protecting a company's assets;
• helps businesses meet their governance, quality, and strategic needs;
• Defines requirements for maintaining the integrity of assets, as well as their availability for use and ongoing maintenance.

Proper asset management procedures contribute to a company's growth, financial success, and sustainability.