IAM IAM-Certificate - The Institute of Asset Management Certificate

Capital investmentrefers to spending on assets that will deliver value over the long term, typically involvingcreation, acquisition, renewal, or enhancementof assets.Safety inspections, however, are anoperational expense (Opex)and part of regular maintenance and compliance activities.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 4.3.3 – Capital Investment Decision-Making:

“Capital investment includes asset creation, acquisition, or major renewal. Routine inspections and maintenance activities are operational expenditures.”

Thepolicydefines the guiding principles, while thestrategytranslates these into organizational objectives and the approach to achieve them.

Exact Extract from ISO 55001:2014, Clause 5.2 and Clause 6.2:

“The policy provides the framework for objectives. The strategy identifies how to achieve them through organizational planning and resource alignment.”

ISO 55001 requires top managementto regularly evaluate the asset management system’s effectiveness. Leadership and review responsibilitiescannot 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.”

Information collection must bepurpose-driven, not exhaustive or IT-defined. IAM emphasizes the“fitness-for-purpose”principle: collect only the data required to inform decision-making.

Exact Extract from IAM – Asset Information: Strategy, Management and Governance:

“Information requirements must be defined based on decision-making needs, not system capability or departmental standards.”

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

Option Bis incorrect as assetsdorepresent potential or actual value.

Option Cis accurate—assuranceinvolves ongoing monitoring and evaluation to verify systems, processes, and asset behavior meet expectations.

Option Dcontradicts 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."

All investment decisions in asset management shouldclearly support strategic objectivesto ensure value alignment, budget justification, and long-term relevance.

Exact Extract from ISO 55001:2014, Clause 6.2 – AM Objectives and Planning:

“Asset management objectives and investment plans must align with the organization’s strategic objectives.”

Organizationalculturesignificantly impacts how asset management systems are implemented and sustained. Engagement, collaboration, and shared values influence decision-making, risk tolerance, and accountability.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 5.2 – Organizational Culture:

“Organizational culture defines how people behave within asset management systems. It is essential for effective delivery of policy and strategic intent.”

Reducing investment cost is atactical financial objective, not aprincipleof asset management. IAM's seven principles include value, alignment, leadership, assurance, lifecycle thinking, risk-based decision-making, and sustainability.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 1.4 – Principles of Asset Management:

“Key principles include alignment with business objectives and applying whole-life costing—not cost reduction as a goal in itself.”

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.”