The term "asset management" refers to a methodical methodology that, throughout the course of an asset's entire life cycle, governs the things that an organisation or body is responsible for and extracts value from those things. It is possible for it to apply not just to tangible assets, which are tangible items like buildings or equipment, but also to intangible assets (such as human capital, intellectual property, goodwill or financial assets). The systematic process of creating, running, maintaining, upgrading, and disposing of assets in the most cost-effective way possible is what we mean when we talk about asset management (including all costs, risks, and performance attributes).
The phrase "asset manager" is often used in the financial industry to refer to individuals and businesses that are in charge of managing assets on behalf of other people. Investment managers are one example of this kind of professional. They are responsible for overseeing the assets of a pension fund.
It is also increasingly utilised in both the commercial world and the public infrastructure sectors to guarantee a coordinated approach to the optimization of costs, risks, service/performance, and sustainability. This is done in order to reduce the likelihood of a negative impact on the environment.
The International Standard known as ISO 55000 offers an introduction as well as a requirements specification for a management system that deals with asset management.