Task 2 -- Asset Identification and Valuation

Question 1

What is an asset?

Answer 1

An asset is anything that has tangible or intangible value to an enterprise. Assets should be valued and prioritized in relation to the enterprise’s mission and goals. The maturity and efficiency of the valuation and prioritization process varies based on the availability and capability of resources. Over time, that process can mature and become stable and integral to the organization.

Question 2

Asset Value

Answer 2

Asset value can be established based on one or multiple factors:
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The cost of purchasing or replacing the asset
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The operational impact of unavailability of the asset (commonly identified through a business impact analysis)
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The effects of harm to the asset
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The length of time required to replace the asset
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The reputational impact from unavailability of the asset
Asset valuation may be quantitative (numerical measurements), qualitative (interviews, surveys, and industry publications), or a mixture of both. Valuing assets is complex, because an asset’s direct monetary value may not match its overall value to the organization. In other words, an asset’s direct monetary value may be minimal while its cumulative value to the organization is significant.

An asset may be more critical or less critical. The impact of loss as measured in currency is best described as criticality. Asset criticality depends on the organization’s mission, the resources used to perform that mission, how those resources interface with one another to achieve goals, and how the organization would cope or maintain business continuity if any of the assets were lost. There are different ways of assigning value to assets, depending on what kind of value it is. Economic cost is one. Reputation, information value, and regulatory compliance are other ways of assigning value.

Question 3

Among the factors to consider in determining asset value are immediate response and recovery costs, investigation costs, and replacement costs, as well as indirect costs (which are often overlooked in the overall assessment).

Answer 3

Indirect costs include such items as these:
temporary leased facilities
equipment rental/purchase
alternative suppliers/vendors
alternative shippers/logistics support
temporary warehousing facilities
special employee benefits
counseling/employee assistance
loss of market share (temporary or permanent)
decreased employee productivity
increased insurance premiums
temporary workforce/staffing
recruiting/staffing costs for the permanent workforce
increased security costs (temporary or permanent)
increased communications capabilities
data recovery/IT system restart and/or reconfiguration
administrative support
increased travel
marketing/public relations efforts
emergency/continuity plan revamps