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IAM The Institute of Asset Management Certificate Sample Questions (Q58-Q63):

NEW QUESTION # 58
How is risk best quantified within an ISO 55001 compliant Asset Management System?

A. Risk is quantified by multiplying event probability by event consequences
B. Risk is quantified as a product of asset criticality and unavailability
C. Risk identification processes quantify risk
D. Risk is quantified by defining boundaries of acceptable risk
E. It is not possible to quantify risk

Answer: A

Explanation:
Thestandard risk formulain ISO-based frameworks is:
Risk = Probability × Consequence
This approach allows comparison and prioritization of risks based on both likelihood and impact.
Exact Extract from ISO 55002:2018, Clause 8.2.2 - Risk Management:
"Risk is typically evaluated by considering the probability of occurrence and the consequences of such events."

NEW QUESTION # 59
Which of the following is NOT a key requirement with regard to an asset management policy?

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

Answer: D

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 # 60
There are many factors that can drive the decommissioning of assets, expect:

A. obsolete technology
B. excess of service capacity
C. compliance with changes in legislation
D. cost of retaining in service

Answer: C

NEW QUESTION # 61
The comparison between Lean and Asset Management, are ......

A. All about Purpose, Process, People
B. All about Value, Risk, Maintenance
C. All about Security System
D. All about Asset, People, System

Answer: A

Explanation:
The philosophical alignment betweenLean ThinkingandAsset Managementis grounded in their mutual emphasis onpurpose, process, and people.
* Purpose: Both aim to achieve strategic goals and deliver value.
* Process: They emphasize efficient, repeatable, value-driven processes.
* People: Success in both depends on cultural engagement and workforce empowerment.
This concept is reinforced in IAM guidance where asset management is described as a holistic discipline that integrates strategy, execution, and people involvement.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 5.2 - Organisational Context and Culture:
"Asset management is not only about systems and procedures but requires the active engagement of people at all levels. It shares with Lean a focus on aligning Purpose, Process, and People."

NEW QUESTION # 62
What is an Asset Management System as defined by PAS 55?

A. The management system which organises and drives all asset management activities
B. The system by which organisations can manage and influence stakeholder requirements
C. The asset information technology system used for collating and analysing asset data
D. The asset system which organises all data management activities

Answer: A

Explanation:
TheAsset Management Systemrefers to themanagement frameworkof policies, processes, and tools that collectively enable the achievement of asset-related objectives-not just IT or data systems.
Exact Extract from PAS 55-1:2008, Clause 3.3.1:
"Asset management system: The integrated set of processes, plans, and tools that collectively define and drive the asset management activities within the organization."

NEW QUESTION # 63
......

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