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Risk: How Asset Management Can Help
Publisher: Asset Management BC
Subject(s):
Collection(s):
Posting Date: March 10, 2020
Year Published: 2020
Abstract:
A major component of municipal service delivery is taking care of the assets that make those services possible. An asset, also known as a tangible capital asset (TCA), is a physical component of a system that enables a service, or services, to be provided. For example, pipes are the assets that deliver water service to homes, roads and traffic lights are the assets that make transportation possible, and recreation centres are assets that allow recreation services to be provided to the community.
Asset management is ultimately about sustainable service delivery: the process of ensuring that municipal services are delivered in a socially, economically, and environmentally responsible way, and that decisions today do not compromise the ability of future generations to meet their own service needs.
Municipalities have been managing assets for a long time. However, asset management is more than just managing assets.
Asset management is a systematic, organized, and integrated approach:
“The process of making decisions about the use and care of infrastructure to deliver services in a way that considers current and future needs, manages risks and opportunities and makes the best use of resources” (Building Community Resilience Through Asset Management: A Handbook & Toolkit for Alberta Municipalities).
The key emphasis here is “making decisions”, as it is through decision-making that asset management is implemented. Asset management is about using systems and processes to balance cost, risk, and level of service to make informed decisions that make sense for your community in the long run. Asset management is not just for large communities. All municipalities make decisions about their assets. The systems and processes don’t need to be extensively detailed or expensive; you can start where you are. Your municipality likely already uses processes for things like planning and budgeting. Asset management is about updating those processes to ensure they systematically consider the right kind of information and take a long-term perspective.
Asset management is ultimately about sustainable service delivery: the process of ensuring that municipal services are delivered in a socially, economically, and environmentally responsible way, and that decisions today do not compromise the ability of future generations to meet their own service needs.
Municipalities have been managing assets for a long time. However, asset management is more than just managing assets.
Asset management is a systematic, organized, and integrated approach:
“The process of making decisions about the use and care of infrastructure to deliver services in a way that considers current and future needs, manages risks and opportunities and makes the best use of resources” (Building Community Resilience Through Asset Management: A Handbook & Toolkit for Alberta Municipalities).
The key emphasis here is “making decisions”, as it is through decision-making that asset management is implemented. Asset management is about using systems and processes to balance cost, risk, and level of service to make informed decisions that make sense for your community in the long run. Asset management is not just for large communities. All municipalities make decisions about their assets. The systems and processes don’t need to be extensively detailed or expensive; you can start where you are. Your municipality likely already uses processes for things like planning and budgeting. Asset management is about updating those processes to ensure they systematically consider the right kind of information and take a long-term perspective.
Full Text Word Count: 6514