Intangible asset risk mitigation…i.e., at the right time, right place, and right way, can benefit company leadership and stakeholders anytime and in any circumstance in which valuable, revenue generating, and competitive advantage intangible assets are in play.
Effective and timely deployment of intangible asset specific risk mitigation provide, among other things, critical segues to…
- develop ‘best practices’ for managing and mitigating risk to intangible assets in intangible asset intensive and dependent businesses, which are rapidly becoming the norm.
- alignment with (new – under consideration) regulatory (legal, accounting, taxation, and auditing) standards and practices.
- managerial (fiduciary) responsibilities related the stewardship and safeguarding of key business intangibles.
- executing effective strategies for at will monitoring – sustaining the control,
use, ownership, competitive advantages, and contributory role and value of businesses key intangible assets. - assess company’s exposure (vulnerability, probability, criticality) to the materialization of costly, momentum stifling, and potentially irreversible risks to intangibles.
- recognize that sustaining intangible assets contributory role and value are not mere operational electives that should not be dismissed, nor delayed.
- sustaining un-compromised control, use, and ownership of a businesses intangible assets which differentiate a company within its sector, i.e., its competitiveness, value, revenue generation, and sustainability, etc.
As consistently conveyed since the ‘Business Intangible Asset Blog’ published its initial post in May, 2006…whenever, however, and wherever valuable, revenue generating, and competitive advantage intangible assets are in play…
- company-business leadership teams are obliged to consider there will be various types, levels, and motives for risks to intangible assets to materialize.
- the initiative – act of identifying – assessing intangible asset risks and the most effective mitigation techniques and strategies, i.e., to serve as (risk) offsets and/or neutralizers,
- does not require leadership to reach beyond-outside their professional domains of expertise.
Perhaps the most important-relevant component to recognizing, assessing, and mitigating intangible asset specific risk(s) is to exercise prudence to…
- …avoid making purely subjective and/or arbitrary assumptions regarding which – how – when – why particular intangible assets are in play relative to…
- their vulnerability to and criticality of risk, ala fragility, stability, defensibility, and liquidity, etc., should it materialize, and
- how materialized risk can-may adversely affect asset value, competitiveness, exploitation, and further utilization, etc.
A common denominator to intangible asset specific risk is the…persistent presence of (global) legacy free players, ultra-sophisticated data mining operations, and economic and competitive advantage adversaries, who, by their actions and capabilities, consistently impose risk.
Michael D. Moberly St. Louis March 20, 2019 m.moberly@kpstrat.com 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’! (This post was originally published February 16, 2017, I made significant revisions – updates for republication.)
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