Free IAM IAM-Certificate Practice Exam with Questions & Answers | Set: 3

TheAsset Management Policyis notderived fromother policies—it isaligned withthem. It expresses high-level intent and governs other plans and strategies, not the reverse.

Exact Extract from ISO 55001:2014, Clause 5.2 – Asset Management Policy:

“The asset management policy shall be consistent with other relevant organizational policies and aligned with the organization’s strategic plan.”

Comprehensive and Detailed in Depth Explanation along with Exact Extract from IAM's five subject areas:

This statement reflects the fundamental definition of asset management. The discipline isgoal-oriented and ensures that activities across the asset lifecycle are aligned to the organization’s objectives.

Extract from IAM Document – Asset Management: An Anatomy (v4):

"Asset management is the coordinated activity of an organization to realize value from assets in support of its organizational objectives."

(Section 1.1 – Definition of Asset Management)

TheCompany Profileis a static representation and not a performance or risk-based metric. Asset management aims to deliver value through:

Meeting service expectations

Managing risk profiles

Achieving financial performance measures

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 2.1 – Value:

“The value delivered by asset management is measured through outcomes such as levels of service, risk exposure, and financial returns.”

Whilelegislative compliancetypically drives asset upgrades or operational adjustments, itdoes not directly trigger decommissioning. Instead, decommissioning is usually influenced by:

Obsolescence(e.g., technology no longer supported)

Overcapacity(asset redundancy)

Operational cost(prohibitive maintenance or energy expense)

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 3.4.5 – Life Cycle Stage: Disposal/Decommissioning:

“Typical drivers include condition, cost of retention, obsolescence, redundancy, and safety concerns.”

There isno universally standardized risk matrixin ISO 55000 or ISO 55002. Risk appetite and operational context vary, so each organization must tailor its own framework.

Exact Extract from ISO 55002:2018, Annex D – Risk Matrix Use:

“There is no universal risk matrix provided. Organizations must develop a matrix that reflects their own risk criteria, tolerances, and operational realities.”

This is theISO 31000 and ISO 55000 definition of risk. Risk encompassesboth threats and opportunities—any uncertainty that may affect objectives.

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

“Risk: Effect of uncertainty on objectives.”

Useful lifeis determined not by age, cost, or accounting rules—but by theeconomic abilityof the asset to deliver required service. This includes operational efficiency, cost-effectiveness, and supportability.

Exact Extract from ISO 55000:2014, Clause 3.2.10 – Useful Life:

“The period over which an asset is expected to be usable for its intended purpose and deliver value economically.”