Fixed Asset Management: Risks & Remedies
Safeguarding Infrastructure • Securing Funding • Driving Accountability
Fixed Asset Management: Risks & Remedies
Safeguarding Infrastructure • Securing Funding • Driving Accountability
Consequences of Inferior Fixed Asset Management
Poor asset management leads to operational inefficiencies, financial exposure, and reputational damage. Without proper oversight, organizations face:
- Unplanned downtime and service disruptions
- Inaccurate financial reporting and audit risks
- Increased maintenance costs and reactive repairs
- Loss of asset value and premature replacements
- Non-compliance with regulatory and safety standards
“Neglecting fixed assets undermines service delivery, erodes public trust, and escalates long-term costs.”
Prioritize Projects & Secure Adequate Funding
Strategic asset management requires a structured approach to project prioritization and funding:
- Conduct condition assessments and risk profiling
- Rank projects by urgency, impact, and lifecycle cost
- Develop multi-year investment plans aligned with strategic goals
- Engage stakeholders and justify funding through data-driven insights
- Explore blended funding models (grants, PPPs, internal reserves)
“Funding follows strategy—organizations must demonstrate value, urgency, and accountability to unlock resources.”
Proper Identification of Fixed Assets
Accurate asset identification is the foundation of effective management. Key steps include:
Asset Discovery
Locate and catalog all physical assets across departments and facilities.
Attribute Verification
Confirm asset type, location, condition, and ownership.
Field Validation
Conduct physical inspections and reconcile with digital records.
Register Updates
Ensure asset registers reflect verified and current data.
“Proper identification enables lifecycle planning, risk mitigation, and financial transparency.”