New Release IAM-Certificate IAM Certificate Questions

An asset management system, especially when aligned with ISO 55000, delivers comprehensive business benefits, including structured role clarity, procedural discipline, and the integration of industry best practices. This leads to more transparent governance, accountability, and performance management across the asset lifecycle.

Ais true: It transforms informal practices into formal procedures.

Bis true: Clearly defines roles and governance responsibilities.

Cis true: Embeds global best practices via systematic frameworks.

Exact Extract from ISO 55000:2014, Clause 3.4:

"An asset management system enables an organization to achieve its asset management objectives and derive value from its assets... It formalizes roles and responsibilities and incorporates recognized practices."

Operational Expenditure (Opex)includes recurring costs that directly affect an organization’scash outflows, such as energy, labor, and service delivery costs. Depreciation is non-cash.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 2.3 – Financial Management:

“Operating expenditure (Opex) is a key factor in cash flow planning and often dominates lifecycle cost models.”

This definition corresponds to the formal definition ofriskused in ISO 31000 and ISO 55000. It highlights thepotential for deviation from expected outcomes, which can be both negative and positive, although traditionally associated with adverse events.

Exact Extract from ISO 55000:2014, Clause 3.2.21 – Risk:

“Risk: Effect of uncertainty on objectives.”

Anasset rationalisation studyevaluates all options—life extension, replacement, disposal—based on lifecycle cost, performance, and risk. This is thestrategically prudent stepbefore committing to major capital outlay.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 4.5.3 – Optimisation and Decision-Making:

“Rationalisation studies support investment decisions by examining value-for-money across options, including retention, replacement, or decommissioning.”