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IAM The Institute of Asset Management Certificate Sample Questions (Q65-Q70):
NEW QUESTION # 65
Which of the following phrases describes best the key advantage of asset management over traditional approaches?
- A. Asset management is primarily concerned with ensuring that resources are optimally used by putting into place effective planning regimes and processes to continually improve staff competence
- B. Asset management ensures all asset interventions (e.g., maintenance or renewal intervals) are optimised with respect to risk
- C. Asset management takes an optimised whole-life view of the work required on the asset portfolio to ensure current and future required levels of service are delivered
Answer: C
Explanation:
OptionBaccurately reflects thewhole-life, value-driven perspectivethat distinguishes asset management. A and C are important aspects but do not encompass the full scope and philosophy of asset management as well as B does.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 1.1 - What Is Asset Management:
"Asset management differs from traditional operations and maintenance by adopting a whole-life view to optimize asset-related activities and value realization."
NEW QUESTION # 66
Asset Management should deliver:
- A. All false
- B. The maximum dividends for the organisation's shareholders
- C. The organisation's strategic objectives
- D. The maximum level of service for the organisation's customers
Answer: C
Explanation:
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."
NEW QUESTION # 67
Which of the following is best described as an Asset Management Objective?
- A. A risk-based approach to renewal and maintenance will be adopted
- B. Risk-based maintenance will deliver an improvement in the failure rate of assets of 10% for no increase in cost by September 2011
- C. Risk based provide direction for Asset and Non-Asset Class Plannin
- D. Risk-based maintenance will be introduced at Depot A in September 2011 with the following work volumes
Answer: A
NEW QUESTION # 68
Which of the following statements is true?
- A. Assurance is the combination of monitoring and auditing
- B. Visible senior level leadership and commitment is insignificant in organisations
- C. Good asset management has clear connectivity between an organisation's strategic plan and the value core
- D. Assets is not a potential value to an organisation
Answer: A
NEW QUESTION # 69
(Exposure to) the possibility of loss, injury, or other adverse or unwelcome circumstance; a chance or situation involving such a possibility, is the definition of .......
- A. Risk
- B. Value
- C. Cost
- D. Asset
Answer: A
Explanation:
This definition corresponds to the formal definition ofriskused in ISO 31000 and ISO 55000. It highlights the potential 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."
NEW QUESTION # 70
......
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