What does safeguarding assets involve?

Safeguarding assets primarily involves protecting an organization's resources from loss, theft, or misuse. This encompasses a range of practices aimed at ensuring that both physical (like inventory and equipment) and digital assets (such as data and software) are secure from unauthorized access or damage. By implementing effective safeguards, businesses can mitigate risks that could lead to financial loss or operational disruptions.

While financial audits, insurance, and documentation play important roles in the overall financial management and accountability of an organization, they are not specifically focused on the proactive measures and controls that are inherent to safeguarding assets. Audits assess compliance and accuracy, insurance provides a financial safety net against loss, and documentation establishes legal ownership and can assist in recovery efforts, but the core of safeguarding is directly related to active protection and prevention measures.