The first step in this process of governance is to determine the level of asset risk the organization is exposed to.  If assets are over-maintained, excessive materials, labor, and energy could be needlessly consumed and unnecessary waste is produced.  If assets are under-maintained, failures can occur, put people in harm’s way, exceed the organization’s budgeted impact on the environment and erode financial performance.  Asset Performance Management (APM) is the set of defined processes that produce a lucid and objective view of asset risk.  As the demand for climate-related financial disclosure increases, organizations will become increasingly dependent on APM to enable this critical part of their asset management system.

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