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IAM The Institute of Asset Management Certificate Sample Questions (Q86-Q91):
NEW QUESTION # 86
Within the asset management strategy, the organisation will take account of changes in demand and service levels by:
- A. determining maximum asset ages by portfolios to plan for end of life replacement
- B. undertaking a full asset design review to find strengths and weaknesses in the end to end system
- C. increasing risk profiles in line with rate of supply and demand changes to justify investment
- D. determining if asset functional performance and conditions are sufficient to meet future requirements
- E. reviewing the financial fixed asset register to plan for replacement when assets are fully depreciated
Answer: D
Explanation:
The correct answer is A . IAM guidance on strategic planning and demand analysis shows that the organization should address changes in demand and required service levels by assessing what those future requirements mean for the asset portfolio, including whether current asset capability, performance, and condition will remain sufficient. The IAM Anatomy notes that forecasting demand and required levels of service is a core input to planning, and IAM strategic-planning material states that the organization should address outputs from demand analysis when determining renewal, enhancement, and maintenance needs.
The other options are weaker because they rely on proxies or narrow triggers rather than the actual service requirement. Maximum age, full depreciation, generic design review, or artificially increasing risk profiles do not directly answer the strategic question of whether the assets can continue to meet future functional and service requirements . IAM's approach is capability- and service-led, not age-led or accounting-led.
NEW QUESTION # 87
According to ISO 55000, assets are .....
- A. Processed, organized and structured data
- B. Item, thing or entity that has potential or actual value to an organization
- C. A type of investment that represents an ownership share in a company
- D. Refers to all the materials available in our environment
Answer: B
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 # 88
Which of the following phrases describes best the key advantage of asset management over traditional approaches?
- A. 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
- B. Asset management ensures all asset interventions (for example maintenance or renewal intervals) are optimised with respect to risk
- C. 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
Answer: C
NEW QUESTION # 89
The asset management strategy will:
- A. consider what customers will want and how to limit rate of change to what they need
- B. consider how to encourage customers to increase demand in the future
- C. consider how to discourage customers from increasing demand in the future
- D. consider how previous customer requirements were assessed and what this tells us about the future
- E. consider how and why current and future customer requirements are assessed
Answer: E
Explanation:
The correct answer is D . IAM's strategic planning guidance explains that strategic asset management planning includes how the organization addresses the outputs from demand analysis in order to establish asset management objectives and develop the asset management strategy. IAM's Demand Analysis guidance says organizations should understand, analyze, and forecast demand to support strategic planning activities .
That means the asset management strategy should consider how and why current and future customer requirements are assessed , not try to manipulate demand in a simplistic way or focus only on past requirements. The strategic issue is the method and rationale for assessing customer and demand requirements so that asset strategies can align with service outcomes.
NEW QUESTION # 90
There are many factors that can drive the decommissioning of assets, expect:
- A. excess of service capacity
- B. obsolete technology
- C. compliance with changes in legislation
- D. cost of retaining in service
Answer: C
NEW QUESTION # 91
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