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IAM The Institute of Asset Management Certificate Sample Questions (Q24-Q29):

NEW QUESTION # 24
Risk is best described as:

A. The effect of uncertainty on an organisation's objectives
B. An organisation's appetite to uncertainty
C. The effect of meeting an organisation's objectives
D. The impact of uncertainty
E. An organisation's tolerance to uncertainty

Answer: A

Explanation:
This is theISO 31000 and ISO 55000 definition of risk. Risk encompassesboth threats and opportunities- any uncertainty that may affect objectives.
Exact Extract from ISO 55000:2014, Clause 3.2.21 - Risk:
"Risk: Effect of uncertainty on objectives."

NEW QUESTION # 25
Which of the following is NOT a key requirement with regard to an asset management policy?

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

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 # 26
Which of these statements is true:

A. Asset information should be guided by the relevance of the information to the asset management decisions that need to be made about the asset
B. Asset information requirements should be derived according to the requirements set out in the IT department's procurement specification
C. Asset information should be collected on all measurable aspects of an asset's function and performance

Answer: B

NEW QUESTION # 27
This covers everything that goes into planning, designing, and procuring an asset.

A. Operate
B. Commission
C. Dispose
D. Acquire

Answer: D

Explanation:
Comprehensive and Detailed in Depth Explanation along with Exact Extract from IAM's five subject areas:
TheAcquirestage encompasses feasibility studies, planning, specification, design, procurement, and funding- the preparatory activities before an asset is commissioned.
Extract from IAM Document - Asset Management: An Anatomy (v4):
"The acquisition phase includes the activities required to define, justify, plan, design, and procure the asset." (Section 3.4.1 - Life Cycle Stage: Acquire)

NEW QUESTION # 28
What is the correct top-down hierarchy order for the following PAS 55 defined documents?

A. Asset Management Strategy, Policy, Objectives and Plans
B. Asset Management Policy, Strategy, Objectives and Plans
C. Asset Management Policy, Plans, Strategy and Objectives
D. Asset Management Policy, Objectives, Strategy and Plans

Answer: B

Explanation:
According toPAS 55 and ISO 55001, the hierarchy flows fromhigh-level principles and intent (policy)to detailed tactical execution (plans):
* Policy- Organizational intent and principles
* Strategy- Long-term approach for achieving objectives
* Objectives- Specific performance and capability targets
* Plans- Scheduled actions to meet objectives
Exact Extract from PAS 55-1:2008, Section 4.2.1:
"The asset management policy leads into the asset management strategy, from which objectives and corresponding plans are derived."

NEW QUESTION # 29
......

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