Human Capital Development and Asset Optimization: A Conceptual Framework for Reducing Asset Mismanagement

Abstract

Asset mismanagement has been identified as a critical governance challenge across both public and private institutions worldwide, resulting in significant financial losses, inefficiencies, and reputational damage. This conceptual paper explores the role of human capital development in mitigating asset mismanagement through a framework that integrates capacity building, ethical leadership, and optimization strategies. Drawing upon global evidence, the paper argues that asset mismanagement is not merely a technical issue of systems and procedures but fundamentally a human issue linked to skill gaps, weak accountability, and organisational culture. The proposed conceptual framework emphasizes the integration of human capital strategies, including training, talent management, and governance awareness, with asset optimization approaches such as lifecycle management, digitalization, and performance measurement. By linking these elements, the paper offers a pathway to reducing mismanagement risks and enhancing sustainable institutional performance.