Definition of Assets from a Business Perspective
An asset (or business asset) is anything that holds positive economic value, usefulness, or importance for an organization, as it is essential for running the business.
- In general, a company’s assets encompass any useful items, resources, or even individuals that possess value.
- These assets are crucial for the business to operate successfully.
- Assets can include finances, products and services, information, specific people, technology, and other tangible or intangible resources.
- It doesn't matter if the asset is tangible or intangible, or if you directly own it.
- Organizations safeguard their assets in proportion to their significance.
- Importantly, assets do not always need to be owned; for instance, people are considered assets because companies rely on them to keep operations running, create products, and provide services
Definitions of Assets in Different Areas
Definitions of assets vary across different areas within an organization. Management perspectives on assets may diverge, leading to distinct viewpoints that do not always align.
Finance and Accounting Perspective
- From a financial accounting standpoint, assets are categorized based on accounting standards. These categories include:
- Long-term Assets: Assets that provide value over an extended period, such as property, plant, and equipment.
- Short-term Assets: Assets that are expected to be converted into cash or used up within a year, such as inventory and receivables.
- Tangible Assets: Physical assets like machinery, buildings, and inventory.
- Intangible Assets: Non-physical assets like patents, trademarks, and goodwill.
Occupational Safety and Risk Management Perspective
- Occupational safety considers assets related to buildings, infrastructure, and other elements that impact employee health and safety. These assets are crucial for maintaining a safe workplace and include:
- Safety Equipment: Items like fire extinguishers, safety harnesses, and protective gear.
- Infrastructure: Buildings, electrical systems, and other physical structures that must be maintained to prevent accidents.
- Environmental Controls: Systems that manage air quality, temperature, and other factors affecting employee well-being2.
Information Security Perspective
- Information security focuses on information and information and IT assets that are crucial for the operation of information systems. These assets are vulnerable to various security risks and therefore require appropriate protection and management. Key assets include:
- Data: Sensitive information that needs to be protected from unauthorized access.
- Hardware: Physical devices like servers, computers, and network equipment.
- Software: Applications and systems that support business operations and need to be secured against cyber threats.
By understanding these different perspectives, organizations can better manage and protect their assets according to their specific needs and risks
Example of Assets
To get a better idea of what business assets are in your organization, try to name anything in your organization about that can say "without this, we won't run". Business assets are therefore.
- Funds, money, finances
- Infrastructure, equipment, buildings and other objects
- Instruments, machines, tools and other movable equipment
- Technology
- Specific people, employees
- Information and data
- Knowledge of people
- Hardware, IT equipment, IT services, data media
- Software
- Outsourced services
- Utilities - energy supply, internet connection, water, gas and the like
How Aptien simplifies Asset Management
Aptien GRC software, allows you to keep an assets inventory in following fields:
Office management
- Office Supplies Management: Manage office furniture, tools, and other supplies, ensuring they are in good condition and properly allocated.
- Vehicle Management: Monitor company vehicles, including their maintenance schedules and usage logs.
HR
- protective equipment
IT
- IT assets management
- IT Equipment Management: Track laptops, mobile phones, and other IT assets, including their maintenance and usage history.
Cyber and information security
- Register of primary assets, Asset Library
- Management of supporting IT assets
- Asset Management: Use Asset Inventory, this feature helps you track, manage, and protect all your organization’s assets, ensuring they are accounted for and secure
GRC and Risk Management
- Asset library overview is part of risk management, GRC solution
- Asset overview is part of risk management
