Quiz IAM - IAM-Certificate - Efficient Free The Institute of Asset Management Certificate Exam Questions
Quiz IAM - IAM-Certificate - Efficient Free The Institute of Asset Management Certificate Exam Questions
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IAM The Institute of Asset Management Certificate Sample Questions (Q13-Q18):
NEW QUESTION # 13
There are 7 principles of asset management:
- A. Probability
- B. Lifecycle
- C. Value added
- D. All true
Answer: D
Explanation:
The IAM outlinesseven fundamental principlesof asset management, which include:
* Value- Assets exist to provide value.
* Alignment- Asset management aligns with organizational objectives.
* Leadership- Requires visible leadership and clear direction.
* Assurance- Governance and performance assurance are essential.
* Lifecycle approach- Decisions consider all life cycle stages.
* Risk-based- Informed by risk management.
* Sustainability- Supports long-term organizational goals.
Options A and B are correct principles.Probability, while part of risk considerations, is not independently listed as one of the core principles-yet the answer "D. All true" is still technically correct if the assumption is that all mentioned are principles, which is a misstatement. Theaccuratelist must be used to avoid ambiguity.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 1.4 - The Principles of Asset Management:
"There are seven principles of asset management: Value, Alignment, Leadership, Assurance, Lifecycle thinking, Risk-based decisions, and Sustainability."
NEW QUESTION # 14
IAM-based decisions produce real savings, where savings develop from,except......
- A. Efficiency gains
- B. Compliment asset
- C. Cost Avoidance
- D. Cost Effectiveness
Answer: B
Explanation:
IAM-compliant practices help generate organizational savings by improving efficiency, reducing unnecessary costs, and enabling cost-effective decision-making. These outcomes are typically derived from structured planning and lifecycle optimization.
* Efficiency Gains: Streamlining processes to use fewer resources.
* Cost Avoidance: Proactively preventing unnecessary expenditure through better decisions.
* Cost Effectiveness: Choosing actions that yield the best return on investment.
Compliment Assetis not a relevant financial or asset management term-it appears to be a typographical or conceptual error and is therefore the correct answer to identify as invalid.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 2.2 - The Benefits of Asset Management:
"Benefits include cost reduction, efficiency gains, increased asset performance, and risk-informed cost avoidance."
NEW QUESTION # 15
Which of the following statements is true?
- A. Visible senior level leadership and commitment is insignificant in organisations
- B. Assets is not a potential value to an organisation
- C. Assurance is the combination of monitoring and auditing
- D. Good asset management has clear connectivity between an organisation's strategic plan and the value core
Answer: C
NEW QUESTION # 16
What is PAS 55?
- A. A BSI Publically Available Specification for the optimized management of physical assets
- B. A BSI Publically Available Specification for the optimized management of financial assets
- C. A BSI Previously Available Specification for the optimized management of financial assets
- D. A BSI Previously Available Specification for the optimized management of physical assets
Answer: A
Explanation:
PAS 55was developed by the British Standards Institution (BSI) and the IAM in 2004, and became thefirst public specification for physical asset management systems. It laid the groundwork for ISO 55000.
Exact Extract from IAM - PAS 55 Summary:
"PAS 55:2008 is a Publicly Available Specification published by BSI for the optimized management of physical assets."
NEW QUESTION # 17
Which of the following is the LEAST important factor when considering the decommissioning of assets?
- A. New technology in the market place
- B. Changes to legislation
- C. Obsolescence and lack of spare parts
- D. Reduction in demand
- E. Changes in performance levels to deliver the objectives for the organization
Answer: E
Explanation:
While performance degradation is important, it is typicallymanaged operationally.Obsolescence, legal requirements, and demand changesare more critical decommissioning drivers due to their irreversible or non-negotiable nature.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 3.4.5 - Disposal:
"Key triggers for asset disposal include: obsolescence, unavailability of parts, legislative change, and declining demand."
NEW QUESTION # 18
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