Changed IAM-Certificate Exam Questions

Theprimary function of asset managementis to ensure that assets contribute to theachievement of strategic objectives, not solely customer service or shareholder return.

Exact Extract from ISO 55000:2014, Clause 2.3 – Purpose of Asset Management:

“Asset management enables an organization to realize value from assets in the achievement of its organizational objectives.”

Thecorrect and widely accepted definition of asset management—particularly as defined by ISO 55000—is thecoordinated activityto realizevalue from assetsthroughlifecycle managementaligned with strategic goals.

Exact Extract from ISO 55000:2014, Clause 3.3.1 – Asset Management:

“The coordinated activity of an organization to realize value from assets.”

TheAsset Management Systemrefers to themanagement frameworkof policies, processes, and tools that collectively enable the achievement of asset-related objectives—not just IT or data systems.

Exact Extract from PAS 55-1:2008, Clause 3.3.1:

“Asset management system: The integrated set of processes, plans, and tools that collectively define and drive the asset management activities within the organization.”

Lifecycle cost analysisprovides a complete financial picture of both options (repair vs. replace). It considers capital, operating, maintenance, and disposal costs—enabling informed decisions.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 4.5.1 – Lifecycle Costing:

“Lifecycle cost analysis enables decision-making based on total cost of ownership rather than isolated capital or operational expenditure.”