Free Practice Questions for IAM IAM-Certificate Exam

TheCompany Profileis a static representation and not a performance or risk-based metric. Asset management aims to deliver value through:

Meeting service expectations

Managing risk profiles

Achieving financial performance measures

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 2.1 – Value:

“The value delivered by asset management is measured through outcomes such as levels of service, risk exposure, and financial returns.”

Organizations often use theValue StreamandValue Chainmodels to understand and maximize how value is created and delivered across asset-related activities:

TheValue Chainfocuses on high-level stages in business processes.

TheValue Streamprovides a more detailed view of flow through specific processes, identifying non-value-adding steps.

These models support performance optimization, resource allocation, and investment planning in asset-intensive environments.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 2.1 – Value in Asset Management:

“Value Stream and Value Chain models are common frameworks to analyze how value is created, delivered, and sustained in asset management systems.”

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.”

This statement reflects the foundational objective of ISO 55000: to offer asystematic approachto asset management. This includes the integration of leadership, planning, support, operation, performance evaluation, and continual improvement—all contributing to the achievement of organizational objectives through optimized asset performance.

Exact Extract from ISO 55000:2014, Clause 0.2:

"An asset management system provides a structured approach for developing and implementing asset management activities that deliver the organizational objectives."

WhileOption Cis also valid practice,Option Ais more fundamental. Without complete and accurate data, whole-life cost models may lead to flawed conclusions, undermining decision-making.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 4.5.2 – Cost Modelling:

“Accuracy and completeness of input data are critical to ensuring reliability in whole-life cost analysis.”

AnAsset Management Strategyshould link strategic goals to asset activities, addressing risks, constraints, future demands, and organizational improvements. Manuals and drawings belong more appropriately in asset management plans.

Exact Extract from ISO 55002:2018, Annex A – Asset Management Strategy Guidance:

“Should include: strategic objectives, long-term risks and opportunities, compliance constraints, demand forecasts.”

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.”