Identifying and categorizing an organization's assets according to the value and criticality associated with their possible loss is essential when deciding on the best risk management strategies. Risk probability, likelihood, and consequences can't be determined without first establishing a baseline, which is why an asset evaluation is so important. The evaluation of assets is also crucial to effective risk management. It is also used to do risk analyses, identify potential weak points, and plan appropriate actions. In addition, this method offers top management with rough estimates of the time, effort, and money required to carry out the procedure.