Deploying Risk Mitigators For Intangible Assets

February 20th, 2017. Published under Due Diligence and Risk Assessments, Enterprise risk management., Sustainability of intangible assets.. No Comments.

Michael D. Moberly February 20, 2017 ‘A business intangible asset blog where attention span really matters’!

Deploying IA-specific ‘risk mitigators’, at the right time, to the right set of assets, and in the right manner can deliver obvious benefits, i.e., counter, prevent, and/or mitigate risk. Those are the obvious and desired outcomes. But, also, when company leadership and (risk) management teams recognize IA-specific risk mitigators are applicable-relevant to most any circumstance where valuable – revenue generating – competitive advantage producing IA’s are being developed and/or already in play, their contributory value rises accordingly.

For most business circumstances, the presence of and the potential for significant (IA specific) risk to materialize and variously jeopardize an IA-dominant undertaking or transaction is real and persistent. The initial management team action, in my judgment, preferably undertaken in advance, should be to do what is necessary to try to mitigate or prevent those risks from materializing – elevating to the point they can adversely (irreversibly) affect an outcome.

Effectively mitigating-preventing risks directed to undertakings dominated by IA’s or myriad of other business transaction circumstances, for that matter, lie in recognizing that putting risk mitigators in place, at the right time, focused on the right set of assets, i.e., those in play, and in the right manner, can deliver obvious and necessary benefits. The benefits are two-pronged, i.e., (1,) to thwart, counter, and mitigate risk, and (2.) measurably contribute to more valuable and competitive (desired) outcomes.

Those business leaders and management teams who assume risks to a IA’s can be adequately dealt with via the purchase of conventional business insurance (riders), without deploying risk mitigators, I suggest, have misread – misunderstood the current risk environment. That is, the ‘keystroke speed’ and asset-specific targeting capabilities of ultra-sophisticated and predatorial global economic and competitive advantage adversaries with advanced data mining technologies, have indeed become the norm, certainly not an anecdotal (one off) exception.

The effective and timely deployment of IA-specific risk mitigators (at the right time, right place, and right way) are businesses’ prelude to – segue for ensuring the IA’s in play remain as fully intact as possible in terms of their capability to continue to generate value, produce sources of revenue, and underlie competitive advantages.

The primary objectives to deploying IA-specific risk mitigators are to affect the assets’, and their holders’ receptivity – vulnerability to compromise and/or undermining throughout the contributory value – materiality cycle of the assets. This is best achieved when there are coordinated processes – actions in place to recognize, monitor, sustain, and acknowledge…

• asset’s exposure to costly and momentum stifling (risk) acts-events.
• IA’s contributory role and value will favorably distinguish companies
within their sector.
• necessary levels of control, use, ownership, value, equity, and resilience
for the IA’s.
• deployment of IA-specific risk mitigators are not mere operational
electives that can be dropped, dismissed, or delayed indefinitely.

As consistently conveyed since the ‘Business IP and Intangible Asset Blog’ published its initial post in May, 2006, whenever, however, and wherever valuable, revenue generating, and competitive advantage IA’s are in play, company-business leadership and management teams are obliged to consider there will be various types, levels, and motives for (IA-specific) risks to materialize.

The acts of, assessing and monitoring IA-specific risks and identifying effective techniques – strategies to prevent, mitigate, or neutralize, does not require leaders to reach beyond-outside their professional domains of expertise in order to take the necessary action.

Perhaps the most important-relevant component to IA-specific risk mitigation is to…

avoid making purely arbitrary-subjective assumptions about
circumstances when, where, how, and why particular IA’s are
in play and their vulnerability to risk, e.g., fragility,
stability, defensibility, and liquidity if-when compromised.

A common denominator to most all IA-specific risk (and, management) is the persistent presence of (global) economic and competitive advantage (legacy free) adversaries, ultra-sophisticated data mining technologies and methodologies, anyone-of-which by their actions and capabilities, impose consistent risk.

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