What does the term "asset management" refer to?

The term "asset management" refers to a systematic approach to managing assets to maximize their value and lifespan. This encompasses a wide range of activities aimed at optimizing the performance of an organization's tangible and intangible assets over time. In this context, the focus is on the entire lifecycle of the assets, from acquisition through operation, maintenance, and ultimately disposal or renewal. This approach not only looks at the financial aspects but also involves ensuring that the assets are maintained effectively so they can deliver their expected performance, reliability, and safety while minimizing costs.

A comprehensive asset management strategy considers factors such as preventive maintenance, condition monitoring, and the strategic planning of asset replacements, ensuring that the organization can sustain its operations efficiently and effectively over the long term. This is particularly important in sectors like utilities, where assets can be critical in providing services to the public.