Asset loss is an event in the operation of a business where the value of an asset has decreased due to mishaps, natural disasters, or other calamities. Unlike other forms of losses that can be relatively easy to identify, asset loss requires an understanding of the physical quantity of the asset and its current market value in order to determine a total dollar amount. When such an event has transpired, it is important for the business or organization to take immediate action.
The first step in responding to asset loss is inventory. It is important to determine the exact quantity of the asset that is either damaged or missing. This comparison of the actual and documented quantities of the asset will also help in determining if system or technological inaccuracies contributed to the loss.
The second step is to assess the value of the affected asset. This can be done by comparing the current market value to the purchase price of the asset. When dealing with physical assets, it is important to consider the age and condition of the asset in any calculations. It is also important to note the actual or estimated costs of repairing the asset, or purchasing a replacement, so that an accurate claim can be made.
Once the inventory and value of the asset has been established, a notification should be sent of the affected asset. Depending on the size of the organization, this notification will be made to various department within the organization as well as to any vendors that may have supplied the asset.
The fourth step is to collect evidence in order to make a formal claim. This includes gathering photographs, repair manuals, purchase documents, and any other pieces of evidence that can confirm the loss. In the case of a natural disaster, it is important to collect meteorological reports and additional supportive evidence.
The fifth step is to compile the claim. The claim should include any and all evidence that has been collected as well as a description of the events surrounding the asset loss. It is important to provide an accurate and timely submission of the claim if the asset is covered by an insurance policy, as some policies require notification within 48 hours of the incident.
Finally, it is important to not only document the event but also the responses that were taken. This helps to establish the importance of asset loss, and the need for organizations to respond in a timely manner. It also helps to ensure that assets are updated and cared for in a manner that mitigates the risk associated with such events.
Asset loss is a situation that requires proactive planning to ensure that the most accurate and up-to-date information is documented and reported. In order to quickly and accurately assess the value of the affected asset, as well as the costs associated with replacement or repair, it is important to use the aforementioned steps to ensure that all the evidence is gathered and the claim is filed in a timely manner.
