How does the normal asset management process function? Normally begins by first identifying and documenting any assets that the company possesses or has control over. The firm can now determine how to get, use, manage, monitor, replace or retire the asset. This is the “how” part of asset management. It's crucial that firms understand what is asset management in order to appreciate the importance of having proper record keeping and constant monitoring of their assets. The systematic approach to asset management will reduce wastage, optimize resources and facilitate financial planning.