Are you protecting what’s most important?
Article | February 28, 2022
Are you protecting what’s most important?
Are you protecting what’s most important?
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Introduction
Did you know that intangible assets typically account for more than 80% of the value of most businesses? Despite this fact, they remain hidden for many companies because they are not identified and managed properly.
A failure to identify and manage intangible assets often flows from two situations. Firstly, it can arise from a lack of understanding of how these assets form and their associated value. Secondly, the lack of awareness around intangible assets may come down to the cost of identifying and managing intangible assets relative to their perceived value. In these two situations, intangible assets tend to have a more fluid construct, making misappropriation easier by employees or third parties. Even if an entity makes efforts to identify and securely manage its intangible assets, they can still be lost.
Irrespective of why intangible assets are not identified and managed, the identification process for intangible assets, such as confidential information, tend to occur once these assets are lost. A common example of this occurring is unauthorised access by former employees.
Generally speaking, intangible assets can be protected in two steps:
- Proper management, including personnel access controls and security systems.
- Contractual obligations for employees and third parties.