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IAM The Institute of Asset Management Certificate Sample Questions (Q15-Q20):

NEW QUESTION # 15
Which of the following phrases describes best the key advantage of asset management over traditional approaches?

A. Asset management ensures all asset interventions (for example maintenance or renewal intervals) are optimised with respect to risk
B. 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
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: B

NEW QUESTION # 16
According to ISO 55000, assets are .....

A. A type of investment that represents an ownership share in a company
B. Processed, organized and structured data
C. Refers to all the materials available in our environment
D. Item, thing or entity that has potential or actual value to an organization

Answer: D

Explanation:
ISO 55000 provides a clear and inclusive definition of anassetthat moves beyond the traditional financial concept. It includesanything that can deliver valueto an organization, either now or in the future. This may be physical, intangible, or financial.
* Arefers to equity investments-not the scope of ISO 55000.
* BandDare unrelated to asset management as defined in this standard.
* Cmatches the ISO definition verbatim.
Exact Extract from ISO 55000:2014, Clause 3.2.1 - Definition of Asset:
"An asset is an item, thing or entity that has potential or actual value to an organization."

NEW QUESTION # 17
The benefits of an asset management system are...

A. A-B-C are true
B. Formalizes asset management
C. Bring best practices into the organization
D. Establish roles and responsiblities

Answer: A

NEW QUESTION # 18
When assessing risks, which of the following is a valid statement?

A. Risks can be assessed by calculating the product of their consequences and occurrence
B. Risks can be assessed by calculating the product of their probability and consequences
C. Risks can be assessed by calculating the product of their probability and frequency
D. Risks can be assessed by calculating the product of their Mean Time Between Failure and Mean Time To Repair
E. Risks can be assessed by calculating the product of their possibility and Mean Time Between Failure

Answer: B

Explanation:
Again, the recognized method for risk evaluation aligns with ISO 31000 and ISO 55000:
Risk = Probability × Consequence
This is used across risk matrices, risk registers, and decision frameworks.
Exact Extract from IAM - Risk Management in Asset Management:
"The basic formula for quantifying risk is: Risk = Likelihood × Consequence."

NEW QUESTION # 19
How many roles are there in the IAM Competences Framework?

A. Six
B. Seven
C. Five
D. Three

Answer: B

NEW QUESTION # 20
......

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