Deploying effective and business-specific (intangible asset) ‘risk mitigators’…at the right time, to the right set of assets, and in the right manner are prudent and necessary actions which deliver obvious benefits…
- insofar as countering, preventing, otherwise reduce the probability materialized risk will cascade throughout a company.
Of course, those are the desired – achievable outcomes…which can be more effective if – when company leadership and (risk) management teams anticipate – recognize intangible asset-specific risks which (a.) are on the horizon, (b.) specifically target a company, and/or (c.) are already in materialization mode.
Intangible asset risk mitigation is applicable – relevant to any…business transaction or circumstance in which valuable – revenue generating – competitive advantage producing intangible assets are…
- being developed for introduction – exploitation to a new transaction, project, or initiative.
- already in play, or
- their contributory role – value to either of the above rises precipitously, thereby making the assets more attractive, and perhaps vulnerable to risk with adverse consequences.
For most businesses, especially intangible asset intensive and dependent one’s…the potential for intangible asset specific risk(s) to materialize and variously jeopardize – undermine an intangible asset (dominant) initiative or transaction, is persistent.
The initial management team ‘risk mitigation’ action…preferably undertaken in advance, should be to do what is necessary to mitigate or prevent particular risks from materializing and/or elevating to the point they will adversely – irreversibly affect (undermine) a current or new initiative or its outcome.
Effectively mitigating-preventing risks directed to any business transaction – initiative dominated by intangible assets…or, myriad other business circumstances, lie with distinguishing the key intangible assets in play. (For specifics about intangible assets, please see posts at this blog, i.e., ‘what are intangible assets’, ‘intangible asset risks’, and ‘conduct pre-post transaction due diligence’.)
In these instances, business leadership is obliged, perhaps fiduciarily responsible, to…recognize that putting risk mitigators in place, at the right time and on the right set of assets and in the right manner, can deliver monetary benefits, i.e., (1,) thwart, counter, and mitigate risk, and (2.) measurably contribute to the projected valuable, sustainable, competitive advantage, and efficiency outcomes.
Business leadership who naively assume…any-all risks to their company’s intangible assets 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 globally predatorial economic and competitive advantage adversaries with advanced data mining technologies coupled with human intelligence, have indeed become the norm, certainly not an anecdotal (one off) exceptions.
The effective and timely deployment of IA-specific risk mitigators… again, at the right time, right place, and right way are businesses’ prelude -segue for ensuring their intangible assets remain as fully intact as possible, i.e., their sustained capability to have substantive value, generate sources of revenue, build competitive advantages, and create efficiencies.
The primary objective for deploying intangible asset specific risk mitigators…are to favorably affect the assets’, and their holders’ receptivity – vulnerability to (asset) compromise and/or undermining throughout the contributory value, materiality, and functionality cycle of the assets.
This is best achieved when companies have coordinated processes – actions in place to recognize and monitor intangible assets…
- exposure to costly and momentum stifling (risk) acts-events.
- contributory role and value to a particular – each transaction, collaborative, or project.
- level of control, use, ownership, value, equity, and organizational resilience.
Deployment of IA-specific risk mitigators…are not mere operational
electives which can be dropped, dismissed, or delayed indefinitely. As consistently conveyed throughout the ‘Business Intangible Asset Blog’ since its initial post in May, 2006…
- whenever, however, and wherever valuable, revenue generating, and competitive advantage delivering intangible assets are in play,
- company-business leadership are obliged to consider there will be various types, levels, and motives for intangible asset specific risks to materialize.
The acts of assessing and monitoring these risks, and…identifying effective techniques and strategies to prevent, mitigate, or neutralize same…
- does not require leadership to reach beyond or outside their professional domains of expertise as a prelude to taking the necessary action.
Perhaps the most important-relevant component to intangible asset specific risk mitigation is to…
- avoid making purely arbitrary – subjective assumptions,
- about the circumstances, i.e., when, where, how, and why
- particular intangible assets are in play, and
- their vulnerability to risk, e.g., their fragility, stability, resiliency, defensibility, and liquidity if-when compromise occurs.
A common denominator to most all intangible asset specific risk 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.
Michael D. Moberly St. Louis March 28, 2019 [email protected] the ‘Business Intangible Asset Blog’ since May 2006, 650+ published posts, read in 137 countries, ‘where one’s attention span, businesses intangible assets, and solutions converge’!
Readers are invited to explore more blog posts, position papers, video, and books at https://kpstrat.com/blog
Reader comments, as always are invited and respectfully welcome!
