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

While legislative compliance typically drives asset upgrades or operational adjustments, it does 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.”

The asset lifecycle includes stages from planning and procurement (acquire), initial setup (commission), use (operate), and eventual retirement (dispose).

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

"Asset life cycle stages typically include: Acquire, Commission, Operate, Maintain, and Dispose."

(Section 3.4 – The Asset Life Cycle)

ISO 55001 requires top management to regularly evaluate the asset management system’s effectiveness. Leadership and review responsibilities cannot be delegated externally .

Exact Extract from ISO 55001:2014, Clause 9.3 – Management Review:

“Top management shall review the organization’s asset management system at planned intervals to ensure its continuing suitability, adequacy and effectiveness.”

Option A is poorly phrased; it is partially correct but vague in structure.

Option B is incorrect as assets do represent potential or actual value.

Option C is accurate— assurance involves ongoing monitoring and evaluation to verify systems, processes, and asset behavior meet expectations.

Option D contradicts ISO 55001, which mandates top-level leadership commitment.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 1.4.4 – Assurance:

"Assurance is achieved through the combination of monitoring, review, and auditing processes that ensure assets, systems, and outcomes are operating as intended."

Lifecycle cost analysis provides 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.”

The correct answer is E . Event Tree Analysis (ETA) is the commonly used technique for identifying the possible outcomes that can follow from a hazardous or initiating event. In contrast, Fault Tree Analysis (FTA) works backward from an undesired top event to identify causes , while root cause analysis , causal analysis , and five whys are primarily used after an event or problem to understand why it happened. A concise ISO 31010 summary describes ETA as modelling the possible outcomes from a given initiating event and the status of controls.

So, in exam terms, if the question asks for the approach used to identify potential outcomes from a hazard , the best match is Event Tree Analysis .

There is no universally standardized risk matrix in 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.”

The Asset Information Strategy defines how asset data is governed, managed, and utilized across its lifecycle. It supports quality, accessibility, and traceability of information.

Exact Extract from IAM – Asset Information Strategy:

“The strategy provides the plan and framework that supports the effective management and use of asset information aligned to asset management objectives.”

The Asset Management Policy is not derived from other policies—it is aligned with them. 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.”

The correct answer is B . There is no single standard risk matrix prescribed by the ISO 55000 series for all organizations. ISO 55002 guidance indicates that when addressing risk in asset management, the organization should determine its risk assessment criteria and decision-making criteria in light of stakeholder input, policy, and the organization’s own risk attitude. That means the matrix, scales, and thresholds are organization-specific, not universal.

This is fully consistent with IAM/GFMAM practice, because asset management decisions are made within the organization’s own context, objectives, risk tolerability, asset portfolio, and stakeholder requirements. A generic matrix found online may be useful as an example, but it is not an ISO 55000 standard matrix. Neither ISO 55002 nor the GFMAM Landscape provides a single mandatory matrix for all asset-management systems.