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IAM The Institute of Asset Management Certificate Sample Questions (Q19-Q24):
NEW QUESTION # 19
Asset Management is important because it can help organisations to, except .....?
- A. Increase the potential health impacts of operating the assets
- B. Minimize the environmental impact of operating the assets
- C. Improve the regulatory performance of the organisation
- D. Reduce the capital costs of investing in the asset base
Answer: A
NEW QUESTION # 20
The concept of 'line of sight' means .....
- A. Top Management involved in asset management
- B. Asset Manager involved in asset management
- C. Everyone who touches or influences what happens to an asset is involved in asset management
- D. Stakeholders involved in asset management
Answer: C
Explanation:
'Line of sight' is a key concept in IAM, referring to how all actions-regardless of position or role-are visibly and logically aligned to the organization's asset management objectives.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 1.5 - Line of Sight:
"Line of sight is achieved when everyone in the organization understands how their activities contribute to delivering value from assets."
NEW QUESTION # 21
What Is the Asset Life Cycle?
- A. a substitute for quality management
- B. a strategic and analytical approach to the management of a business's assets.
- C. a project management system
- D. All False
Answer: B
NEW QUESTION # 22
Risk is best described as:
- A. The effect of meeting an organisation's objectives
- B. An organisation's tolerance to uncertainty
- C. An organisation's appetite to uncertainty
- D. The effect of uncertainty on an organisation's objectives
- E. The impact of uncertainty
Answer: D
Explanation:
This is the ISO 31000 and ISO 55000 definition of risk . Risk encompasses both 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 # 23
According to ISO 55000, assets is .....
- A. Item, thing or entity that has potential or actual value to an organization.
- B. Refers to all the materials available in our environment
- C. Processed, organized and structured data
- D. A type of investment that represents an ownership share in a company
Answer: A
NEW QUESTION # 24
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