A multinational corporation is implementing a comprehensive asset management program. Which of the following approaches would BEST ensure the program's effectiveness across the enterprise?
Outsourcing asset management to specialized third-party vendors
A centralized asset management program with distributed responsibility
A centralized program managed by headquarters with limited regional input
A decentralized approach where each business unit manages assets independently
A centralized asset management program with distributed responsibility is the BEST approach because it combines centralized oversight with localized control. This approach maintains consistency through standardized policies, procedures, and systems while acknowledging that different regions or business units may have unique requirements or regulatory considerations that need local expertise. The centralized component ensures unified governance, consistent risk management, and enterprise-wide visibility, while the distributed responsibility enables practical implementation that accounts for regional variations. This balance addresses both strategic and tactical needs of effective asset management.
The other options are less effective: A purely centralized approach would lack flexibility for regional requirements; a decentralized approach would create inconsistencies and gaps in protection; and outsourcing asset management transfers control to a third party, potentially increasing risk and reducing visibility into asset handling practices.
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