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IAM The Institute of Asset Management Certificate Sample Questions (Q51-Q56):

NEW QUESTION # 51
Which of the following is NOT a key requirement with regard to an asset management policy?

A. It provides for continual improvement
B. It is fully detailed on every aspect
C. It commits the organization to compliance with relevant laws
D. It is appropriate for the type of organization
E. It is consistent with the organizational strategic plan

Answer: B

Explanation:
Theasset management policyis a high-level document, and thereforenot meant to be fully detailed. It outlines intent and framework, not implementation specifics.
Exact Extract from ISO 55001:2014, Clause 5.2:
"Shall be appropriate to the organization and provide a framework for objectives. It does not include detailed implementation plans."

NEW QUESTION # 52
What is the purpose of the asset management policy?

A. To balance the costs and benefits of different renewal maintenance overhaul and disposal interventions in support of the asset management objectives.
B. To describe the long-term approach to the management of physical assets and how organisational objectives are converted into asset management objectives.
C. To set a framework of principles for translating the organisation's strategic objectives into asset management objectives and guiding development of the asset management strategy.
D. To address the approach of the asset management organisation to realise the (strategic) asset management plans.
E. To determine the asset management objectives including costs, risks and performance, aligned with the organisational objectives.

Answer: C

Explanation:
Theasset management policyis a high-level document that provides direction and a framework for developing asset management strategies and objectives. It does not include specific activities, financials, or operational details.
Exact Extract from ISO 55001:2014, Clause 5.2 - Asset Management Policy:
"The policy provides a framework for the setting of asset management objectives and alignment with the strategic plan."

NEW QUESTION # 53
The term optimizing describes:

A. The process of control the best value compromise between a set of competing factors, in order to support asset management decision-making
B. The process of review the best value compromise between a set of competing factors, in order to support asset management decision-making
C. The process of Maintenance the best value compromise between a set of competing factors, in order to support asset management decision-making
D. The process of establishing the best value compromise between a set of competing factors, in order to support asset management decision-making

Answer: D

Explanation:
Optimizingis a core concept in asset management. It refers to establishing a compromise between performance, cost, and risk-across the asset lifecycle. This balancing act is based on data-informed decision- making and scenario analysis.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 4.5 - Decision-Making:
"Optimization is the process of determining the best value compromise between conflicting priorities such as cost, risk, and performance."

NEW QUESTION # 54
Based on ISO 55000 regarding asset management system, which of the following statements is false?

A. Is a regulation to help the organization
B. Is not a software
C. Is application agnostic
D. Provides a documented foundation for the asset management operation

Answer: A

Explanation:
AnAsset Management Systemunder ISO 55000 is not a software product or regulation; itis amanagement system-a structured framework of policies, processes, and responsibilities used to achieve asset management objectives.
* Ais correct: The standard explicitly states it isnotsoftware.
* Bis correct: ISO 55000 is industry and platform agnostic.
* Cis correct: The standard provides a documented foundation for good asset management practices.
* Dis incorrect: ISO 55000 is a voluntary standard, not a regulation.
Exact Extract from ISO 55000:2014, Clause 2.5:
"An asset management system is a set of interrelated or interacting elements of an organization, to establish asset management policy and objectives, and the processes to achieve those objectives. It is not a software system."

NEW QUESTION # 55
Asset Management is important because it can help organisations to,except.....?

A. Reduce the capital costs of investing in the asset base
B. Improve the regulatory performance of the organisation
C. Increase the potential health impacts of operating the assets
D. Minimize the environmental impact of operating the assets

Answer: C

Explanation:
Comprehensive and Detailed in Depth Explanation along with Exact Extract from IAM's five subject areas:
Asset Management promotes safer, more efficient, and more sustainable operations. Increasing negative health impacts contradicts IAM goals.
* Option Ais valid-effective asset management reduces CAPEX through optimized planning.
* Option Caligns with environmental sustainability principles.
* Option Drefers to compliance, a key governance and risk management objective.
Extract from IAM Document - Asset Management: An Anatomy (v4):
"It enables organizations to manage risk, improve safety and reliability, reduce costs, and enhance environmental and regulatory compliance." (Section 2.2 - The Benefits of Asset Management)

NEW QUESTION # 56
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