Asset tracing refers to a legal process rather than a remedy for the asset owner to make a claim against specified property or a general asset. This process will allow the transmission of some legal claims that occurred from the original assets to a substituted asset or the proceeds of its sale. However, people should know that it is not a claim or even a legal remedy for a related dispute. Well, in fact, it is simply a process of determining what has happened to the property and identifying your earnings. Other than that, it can also involve the justification of the person’s claim on the asset.
The advantages of tracing as a process
There are two main benefits of taking advantage of this service from professional service providers. One benefit of this is that it allows the person claiming the asset to get back an amount greater than what they originally lost. Second, the process can also serve as a property remedy rather than just an ordinary personal claim. What this implies is that the plaintiff may take ownership of the property if the defendant is insolvent. This is very different from simply receiving damages. However, there are also some countries where asset tracking may result in the adjudication of a personal resource, as the proprietary resource is unenforceable.
What is asset management?
On the other hand, asset management is another aspect that can also be related to asset tracking. This can refer to the system of monitoring and maintenance of something that has perceived value for a person, entity, institution or group of people. It should be clarified that the asset is not only about tangible assets such as furniture sets, accessories and land. This is because it can also include intangible assets such as intellectual property and goodwill.
It is a systematic practice related to the operation, maintenance, updating and disposal of assets in a profitable manner. Alternatively, this can also be defined as asset management to ensure that the highest potential return can be achieved. However, this is not a general definition of this, as it is only applicable to productive physical assets such as a plantation or equipment. In addition, for assets that are for the service industry, their management may consist of ensuring that the customer can enjoy the best possible service or the highest quality through these assets.
With the above, it just means to say that asset management can vary depending on the focused asset. In other words, the methods for managing infrastructure assets may be different from financial assets and business assets. Specifically, infrastructure asset management focuses more on physical assets, while financial asset is more concerned with investment management. In addition, the management of company assets is also different, as it is more focused on the business process of an organization, as well as the enabling information systems.