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International Journal of Research in Finance and Management
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E-ISSN: 2617-5762|P-ISSN: 2617-5754
Peer Reviewed Journal

2025, Vol. 8, Issue 2

Operations-finance governance frameworks optimizing asset utilization to prevent impairment and enhance long-term productivity

Tolulope Jagun

Modern organizations increasingly rely on integrated operations-finance governance frameworks to ensure that capital-intensive assets remain productive, resilient, and financially sustainable throughout their lifecycle. As global competition, technological change, and regulatory pressures intensify, traditional siloed management approaches are no longer sufficient to safeguard asset value or prevent impairment. Instead, firms require unified governance structures that connect operational decision-making with real-time financial oversight, enabling proactive resource allocation, improved risk visibility, and long-term value preservation. At a strategic level, operations-finance governance combines asset performance management, budgeting, capital planning, and risk controls to ensure that utilization decisions align with enterprise financial objectives. Predictive analytics and performance dashboards play a critical role by identifying emerging inefficiencies, underutilized capacity, and early signs of operational stress that could lead to asset write-downs or costly downtime. By integrating these insights into financial planning, organizations can optimize maintenance schedules, redirect capital toward high-yield activities, and avoid impairment losses stemming from prolonged underperformance. From a tactical perspective, cross-functional governance committees enable coordinated decision-making between operations, finance, and strategy teams. These structures support continuous monitoring of asset health, variance analysis, and scenario modeling to evaluate the financial implications of operational adjustments. Furthermore, digital tools such as digital twins, IoT monitoring, and lifecycle-costing platforms strengthen accountability by linking operational behaviors with measurable financial outcomes. Ultimately, effective operations-finance governance frameworks extend asset longevity, stabilize cash flows, and enhance organizational resilience. By preventing impairment and improving utilization, organizations can unlock long-term productivity gains while ensuring that capital investments generate consistent returns in a rapidly evolving economic landscape.
Pages : 850-862 | 80 Views | 43 Downloads


International Journal of Research in Finance and Management
How to cite this article:
Tolulope Jagun. Operations-finance governance frameworks optimizing asset utilization to prevent impairment and enhance long-term productivity. Int J Res Finance Manage 2025;8(2):850-862. DOI: 10.33545/26175754.2025.v8.i2i.619
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