IAM Certification Practice Exam
Study online at https://quizlet.com/_g6p86g
1. Which statement best describes the concept of 'line of sight'?: Line of sight
is alignment between the organizational strategic plan and the daily activities of
individual departments and employees through all relevant connecting layers within
the asset management system.
2. What is good practice to be included in an asset management policy?: A
statement of commitment to comply with regulations, a commitment to continuous
improvement, and principles guiding the development of the asset management
strategy and objectives.
3. Which of the following is most important as an input to the development
of the organization's strategic asset management plan?: Organizational Objec-
tives
4. An Asset Management Strategy or Strategic Asset Management Plan in-
cludes:: The asset management improvement objectives an organization has de-
fined
5. Which of the following is one of the six main subject areas in the Asset
Management Landscape?: Organization and people
6. Asset management is concerned with achieving an appropriate balance
between which three factors?: Performance, cost and risk
7. Optimum economic life can be defined as:: The lowest lifecycle costs to
provide the required level of service for the duration of time the service is required
8. Which of the following is LEAST likely to be in a cash flow cost model?: De-
preciation costs
9. What best describes organizational objectives?: Overarching objectives that
set the context and direction for an organization's activities
10. Which of the following would you LEAST associate with an ageing infra-
structure?: Increased net cash flow
11. Making changes to the asset maintenance regime is likely to have the
biggest impact on which of the following?: Profit and loss statement, and cash
flow statement
12. When creating or acquiring a new asset that needs to interface with ex-
isting assets, what would be a good approach to developing functional and
technical specifications?: Systems Engineering
13. New Town University - During your review, you find that one probable
cause of asset failure is that some assets have already surpassed their End
of Economic Life. Which of the following phrases best defines an asset's 'End
of Economic Life'?: The average annual lifecycle costs of the existing asset are
greater than those for a replacement asset
14. New Town University - While some of the campus's existing assets have
been identified for major refurbishment and others for maintenance, you have
1/6
, IAM Certification Practice Exam
Study online at https://quizlet.com/_g6p86g
identified in your review that some assets need to be disposed. Which of the
following is NOT considered to be a means of asset disposal?: Decommission
the asset and leave the asset unused in its original location
15. New Town University - You find that the major refurbishment budget for the
next four years will not be enough to refurbish every asset and you need to
be selective in deciding which assets are refurbished. Which of the following
best describes the approach that you should take in identifying assets for
refurbishment that best matches the university's needs and future plans?: A
prioritization approach with a single consistent process for scoring and prioritizing
assets based on a set of agreed criteria
16. New Town University - Which of the following is usually NOT one of the
criteria that you would consider in your refurbishment prioritization?: Annual
Auditing Plan
17. Which of the following best describes what you would expect to be within
scope of a contingency plan?: First response, minimizing the impact of the failure,
keeping the organization running as best as possible, bringing the contingency
situation to an end, restoring to normal operation, learning the lessons
18. Which of the following best describes Asset Information?: Asset Informa-
tion is a combination of data from multiple sources to inform decisions about how
assets are managed
19. Which of the following is an example of an asset stewardship measure?: -
The average condition of an organization's assets
20. You are communicating the asset management policy. Who would you
communicate this to?: Top management, staff working with the assets within the
asset management system, financial and commercial teams
21. According to ISO 55001 an asset management policy should include the
following:: Be consistent; Be appropriate; Show commitment; Be a framework for
objectives; Be a communication instrument
22. The contents of an asset management policy can include...: the mandated
requirements of the organization, the asset management principles for the orga-
nization, high level asset management roles and responsibilities, a framework for
the setting of the asset management strategy and objectives and a commitment to
continuous improvement
23. Which of the following is NOT a key requirement with regard to an asset
management policy?: It is fully detailed on every aspect
24. What is the term commonly given to describe the alignment of the asset
management policy, the asset management strategy and the asset manage-
ment plan with an organization's plan and objectives?: Line of Sight
2/6
Study online at https://quizlet.com/_g6p86g
1. Which statement best describes the concept of 'line of sight'?: Line of sight
is alignment between the organizational strategic plan and the daily activities of
individual departments and employees through all relevant connecting layers within
the asset management system.
2. What is good practice to be included in an asset management policy?: A
statement of commitment to comply with regulations, a commitment to continuous
improvement, and principles guiding the development of the asset management
strategy and objectives.
3. Which of the following is most important as an input to the development
of the organization's strategic asset management plan?: Organizational Objec-
tives
4. An Asset Management Strategy or Strategic Asset Management Plan in-
cludes:: The asset management improvement objectives an organization has de-
fined
5. Which of the following is one of the six main subject areas in the Asset
Management Landscape?: Organization and people
6. Asset management is concerned with achieving an appropriate balance
between which three factors?: Performance, cost and risk
7. Optimum economic life can be defined as:: The lowest lifecycle costs to
provide the required level of service for the duration of time the service is required
8. Which of the following is LEAST likely to be in a cash flow cost model?: De-
preciation costs
9. What best describes organizational objectives?: Overarching objectives that
set the context and direction for an organization's activities
10. Which of the following would you LEAST associate with an ageing infra-
structure?: Increased net cash flow
11. Making changes to the asset maintenance regime is likely to have the
biggest impact on which of the following?: Profit and loss statement, and cash
flow statement
12. When creating or acquiring a new asset that needs to interface with ex-
isting assets, what would be a good approach to developing functional and
technical specifications?: Systems Engineering
13. New Town University - During your review, you find that one probable
cause of asset failure is that some assets have already surpassed their End
of Economic Life. Which of the following phrases best defines an asset's 'End
of Economic Life'?: The average annual lifecycle costs of the existing asset are
greater than those for a replacement asset
14. New Town University - While some of the campus's existing assets have
been identified for major refurbishment and others for maintenance, you have
1/6
, IAM Certification Practice Exam
Study online at https://quizlet.com/_g6p86g
identified in your review that some assets need to be disposed. Which of the
following is NOT considered to be a means of asset disposal?: Decommission
the asset and leave the asset unused in its original location
15. New Town University - You find that the major refurbishment budget for the
next four years will not be enough to refurbish every asset and you need to
be selective in deciding which assets are refurbished. Which of the following
best describes the approach that you should take in identifying assets for
refurbishment that best matches the university's needs and future plans?: A
prioritization approach with a single consistent process for scoring and prioritizing
assets based on a set of agreed criteria
16. New Town University - Which of the following is usually NOT one of the
criteria that you would consider in your refurbishment prioritization?: Annual
Auditing Plan
17. Which of the following best describes what you would expect to be within
scope of a contingency plan?: First response, minimizing the impact of the failure,
keeping the organization running as best as possible, bringing the contingency
situation to an end, restoring to normal operation, learning the lessons
18. Which of the following best describes Asset Information?: Asset Informa-
tion is a combination of data from multiple sources to inform decisions about how
assets are managed
19. Which of the following is an example of an asset stewardship measure?: -
The average condition of an organization's assets
20. You are communicating the asset management policy. Who would you
communicate this to?: Top management, staff working with the assets within the
asset management system, financial and commercial teams
21. According to ISO 55001 an asset management policy should include the
following:: Be consistent; Be appropriate; Show commitment; Be a framework for
objectives; Be a communication instrument
22. The contents of an asset management policy can include...: the mandated
requirements of the organization, the asset management principles for the orga-
nization, high level asset management roles and responsibilities, a framework for
the setting of the asset management strategy and objectives and a commitment to
continuous improvement
23. Which of the following is NOT a key requirement with regard to an asset
management policy?: It is fully detailed on every aspect
24. What is the term commonly given to describe the alignment of the asset
management policy, the asset management strategy and the asset manage-
ment plan with an organization's plan and objectives?: Line of Sight
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