A Short Guide to Asset Management Compliance

Complying with asset management regulations is easier said than done. With so many moving parts, things can slip through the tracks. Even the smallest mistakes and oversights can lead to a failed compliance audit. 

So, how do you ensure your asset management system can handle compliance rules and regulations? There’s no one simple answer, but we hope to provide you with some framework you can tailor to your specific business needs. Join us as we dive into how and why asset management compliance is vital across different industries. We’ll also discuss common obstacles with asset management compliance and how to handle them. 

What is asset management compliance?

The global fixed asset management software industry is growing rapidly and is expected to hit $5.87 billion in 2027. This is largely due to more demand than ever to meet regulatory compliance requirements such as the Generally Accepted Accounting Principle (GAAP), International Financial Reporting Standards (IFRS), and industry-specific regulations. Many industries, including government, healthcare, and education, are subject to strict regulatory compliance requirements. 

Internal vs. external asset management compliance standards

Internal compliance standards are policies and procedures developed by an organization. These standards are specific to every organization and are crafted to align with values, culture, goals, and operational requirements. Examples of internal compliance standards include asset management protocols, security measures, and internal controls. Internal compliance standards are more easily modified or updated to adapt to a changing organization. It is a proactive approach that helps avoid compliance issues down the road. 

Meeting external compliance standards is what we will be focusing on more in this article. These are regulations and guidelines imposed by government agencies, industry regulators, or accrediting bodies. These standards are mandatory for organizations operating within a particular industry/jurisdiction and are designed to ensure consistency, fairness, and ethical conduct. External asset management compliance standards are non-negotiable and must be followed to meet legal requirements and industry benchmarks. 

Consequences of failing to meet asset management compliance standards

Many consequences come with failing to meet asset management compliance standards. Organizations must prioritize compliance and stay informed about regulatory changes to avoid these consequences.

  1. Financial penalties and legal consequences: The penalties for non-compliance can be very steep. In addition to paying fines, you may also need to deal with legal actions or lawsuits against you. 
  2. Reputational damage and loss of credibility: You risk losing the trust of customers, investors, and other stakeholders by not meeting compliance standards. Negative publicity has a ripple effect and can also cost you future business opportunities and contracts. 
  3. Operations disruptions and inefficiencies: Non-compliance issues can restrict or sanction your operations. This disruption can lead to increased operational inefficiency and waste. 
  4. Loss of licenses and permits: Regulatory authorities can revoke or suspend licenses or permits you need to run your business. This can prevent you from legally operating in your industry. 
  5. Increased regulatory scrutiny: If you fail to meet compliance standards, regulatory bodies will be more inclined to keep a closer eye on you. You may need more frequent audits and investigations to hold you accountable. This added pressure can add administrative burdens and slow down operations. 
  6. Loss of employee morale and productivity: Non-compliance creates an unsafe and uncertain working environment for employees. Employees can grow concerned about their job security, which results in decreased morale and productivity. 

Case study: KPMG 

KPMG had to pay $6.2 million in fines due to their overvaluation of fixed assets. In their audit of an oil company, they failed to report that fixed assets were counted twice in the company’s valuation. This major oversight cost them millions of dollars, credibility, and trust. 

Many companies invest in asset management systems that can help provide transparency and accountability. Automated tracking of fixed assets can ensure accurate inventory records. Automated auditing features can help auditors catch errors proactively, while comprehensive reporting can cross-verify asset values and identify discrepancies. 

Asset management compliance examples

Asset management compliance is relevant across many industries where fixed assets play a big operational role. Asset management compliance is especially crucial in industries like the ones listed in the image below, but we will focus on education, government, healthcare, and IT in this section. 


Because public or private sources fund most educational institutions, they must comply with financial regulations and accounting standards to ensure proper management of assets. Examples of fixed assets in education include laptops, furniture, library books, sports equipment, musical instruments, and more. By aligning with standards such as GAAP, educational institutions can secure funding and maintain credibility.

Government and public sector

Government agencies and the public sector often deal with large inventories of assets, including vehicles, infrastructure, and IT systems. Various regulations, such as the Government Performance and Results Modernization Act (GPRAMA), require agencies to manage their assets transparently and efficiently. Asset tracking software helps prevent fraud, waste, and corruption while ensuring public funds are being used properly. 


Asset management compliance is crucial for patient safety and operations running smoothly in the healthcare industry. Healthcare organizations must comply with the Health Insurance Portability and Accountability Act (HIPAA), which protects patient information. Asset management systems can help track assets containing sensitive patient data, such as computers and storage devices. They also accurately track and manage medical equipment and pharmaceuticals. 

Information Technology (IT)

Asset management compliance in IT revolves around safeguarding data, software licensing compliance, and IT infrastructure security. Organizations must comply with industry standards and regulations like ISO 27001 for information security. Asset management systems help keep track of software licenses and hardware assets and monitor configurations. This is particularly critical in preventing unauthorized access, data breaches, and legal consequences of unlicensed software usage.

Best practices for asset management compliance

We hope you have a solid grasp of the importance of asset management compliance and the consequences of what could happen if you don’t adhere to regulations. So, how do you put asset management compliance into action? 

  1. Invest in up-to-date asset tracking software: Asset tracking tools help you provide accurate reports of your assets. Use these features to aid your compliance efforts. Regularly updating these tools will help you access the latest features and security measures. 
  2. Accurate documentation and record keeping: This is one of the most important elements of asset management compliance. To facilitate audits, keep detailed records of asset transactions, maintenance activities, and usage patterns. 
  3. Legal and ethical considerations: Practicing transparency at each stage of the asset lifecycle will save you a future headache. From acquisition to disposal, keep track of your assets and communicate with your stakeholders. 
  4. Stay informed about industry-specific asset management regulations and standards: Each industry must have unique standards and regulations. Get informed about ever-evolving standards — participate in relevant forums or associations to stay in the know. 
  5. Develop clear and comprehensive asset management policies and procedures: This type of documentation should outline the entire lifecycle of assets and include guidelines on usage, maintenance, and where to find more information. Clarity in policy helps reduce compliance risks.  
  6. Implement access controls to increase asset security: Safeguard against unauthorized access to sensitive assets with access controls. Role-based access amps up your security and can prevent potential breaches. 
  7. Training and policy awareness: Ensure your team is trained on asset management policies. Regular training sessions and awareness programs will reinforce a culture of responsibility, proper asset handling, and reporting. 
  8. Risk management: Don’t deal with data breaches, equipment failures, etc., after the fact. Regular risk assessments can help you identify vulnerabilities in your systems so you are prepared to handle potential compliance challenges. 
  9. Third-party vendor compliance and management: If you often rely on third-party vendors, ensure they comply with asset management compliance standards. You can do this by incorporating vendor compliance checks and due diligence processes. 
  10. Incident response plan: This can help you address unforeseen events as they arrive. A comprehensive incident response plan should outline the steps to be taken if non-compliance, security breaches, or other issues occur. 
  11. Up-to-date asset inventory and classification: Regularly classify assets based on their importance, usage, and sensitivity. Classification helps you prioritize security measures and focus your compliance efforts.

Overcoming asset management compliance hurdles

Asset management compliance isn’t always smooth sailing, even if you’ve done everything right. You can overcome these hurdles with the right tools and preparation. Let’s explore some of the most common asset management compliance challenges businesses face and how to address them.

Challenge: Evolving regulatory standards

Solution: Establish a dedicated compliance team to stay on top of compliance changes and conduct regular audits. Invest in an agile compliance management system and technology that tracks real-time compliance.

Challenge: Complex global operations

Solution: Utilize a centralized asset management system that considers global compliance standards. Develop clear documentation and train your employees to make them aware of global compliance. 

Challenge: Rapid technological innovation 

Solution: Invest in cutting-edge asset management tools. Encourage employees to adapt to new technologies to inspire a culture of innovation. Regular technology assessments can help your tech align with compliance requirements as well. 

Challenge: Human error

Solution: Comprehensive training programs and user-friendly asset management systems can help your employees reduce the risk of human error. Develop a culture of accountability with your employees. 

Challenge: Inefficient asset lifecycle management 

Solution: Integrated asset management systems that automate lifecycle management tasks can help with asset visibility and control. Regular assessments of your asset management processes can identify and address inefficiencies. 

Learn more

We hope this article gave you an idea of how important asset management compliance is so you can avoid penalties for failing to meet regulatory standards. These strategies are a general framework and should be tailored to your organization’s industry-specific needs. 

Despite the hurdles, you still have plenty of room to thrive. With the right asset tracking and asset management tools, you can stay prepared for any audits that come your way. Stay informed and adopt a proactive mindset to reduce the consequences of compliance issues. 

See how RedBeam can help you meet asset management compliance standards. Schedule a demo or try it for free today.