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The Institute of Asset Management Certificate Question and Answers

The Institute of Asset Management Certificate

Last Update Apr 15, 2026
Total Questions : 122

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Questions 1

The asset management strategy will:

Options:

A.  

Consider what customers want and how to limit change

B.  

Consider how to discourage future demand growth

C.  

Consider how to encourage customer demand

D.  

Consider how and why current and future customer requirements are assessed

E.  

Focus on historical customer requirements for forecasting

Discussion 0
Questions 2

What is the purpose of whole-life cost analysis?

Options:

A.  

To determine the option for a particular decision which has the lowest costs over the life of the asset

B.  

To determine the most important costs associated with an asset

C.  

To determine the renewal costs at the end of an asset’s life

Discussion 0
Questions 3

What is good practice to be included in an asset management policy?

Options:

A.  

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.

B.  

A statement of commitment to comply with regulations, a commitment to continuous improvement, a detailed plan of the work for the following year.

C.  

A statement of commitment to comply with regulations, a list of the top risks to the organisation, principles guiding the development of the asset management strategy and objectives.

D.  

A statement of commitment to comply with regulations, budget for the next five years, a commitment to continuous improvement, principles guiding the development of the asset management strategy and objectives.

E.  

A statement of commitment to comply with regulations, a commitment to continuous improvement, and the asset management strategy.

Discussion 0
Questions 4

There are 7 principles of asset management:

Options:

A.  

Value added

B.  

Lifecycle

C.  

Probability

D.  

All true

Discussion 0
Questions 5

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

Options:

A.  

Asset Management Policy, Strategy, Objectives and Plans

B.  

Asset Management Strategy, Policy, Objectives and Plans

C.  

Asset Management Policy, Plans, Strategy and Objectives

D.  

Asset Management Policy, Objectives, Strategy and Plans

Discussion 0
Questions 6

Who should demonstrate leadership in ensuring adequate, periodic review of the suitability, adequacy and effectiveness of the Asset Management System?

Options:

A.  

The Senior Engineer

B.  

The Head of Asset Management

C.  

The Board Audit Committee

D.  

The Top Management Team

E.  

An Independent Auditor

Discussion 0
Questions 7

What is one of the most important elements of asset management?

Options:

A.  

Company profile

B.  

The control of management risk

C.  

The role of organisational culture

D.  

None of above

Discussion 0
Questions 8

An asset management plan specifies...

Options:

A.  

Objectives, stakeholders, strategy alignment, and risk mitigation

B.  

Activities, resources, costs, timeframes, and responsibilities to meet AM objectives

C.  

Capability development, system design, and risk mitigation

D.  

Long-term asset management approach and conversion of organizational goals

E.  

Framework for translating strategy into AM objectives

Discussion 0
Questions 9

Investment proposals should align with the delivery of...

Options:

A.  

Key Performance Indicators

B.  

The CEO's personal objectives

C.  

Strategic Objectives

D.  

Departmental Objectives

E.  

Company Values

Discussion 0
Questions 10

A new set of performance metrics are being developed for part of the asset portfolio. Which of the following documents should be referred to when checking alignment with the Asset Management and Organizational objectives?

Options:

A.  

The Asset Management Strategy

B.  

The Asset Management Policy

C.  

The Asset Maintenance Strategy

D.  

Standard Operating Procedures

E.  

Annual Departmental Objectives

Discussion 0
Questions 11

Asset Management is explicitly focused on helping organisations to achieve their defined objectives and to determine the optimal blend of activities based on these objectives.

Options:

A.  

True

B.  

False

Discussion 0
Questions 12

Based on ISO 55000 regarding asset management system, which of the following statements is false?

Options:

A.  

Is not a software

B.  

Is application agnostic

C.  

Provides a documented foundation for the asset management operation

D.  

Is a regulation to help the organization

Discussion 0
Questions 13

This covers everything that goes into planning, designing, and procuring an asset.

Options:

A.  

Acquire

B.  

Commission

C.  

Operate

D.  

Dispose

Discussion 0
Questions 14

The term optimizing describes:

Options:

A.  

The process of Maintenance the best value compromise between a set of competing factors, in order to support asset management decision-making

B.  

The process of establishing the best value compromise between a set of competing factors, in order to support asset management decision-making

C.  

The process of control the best value compromise between a set of competing factors, in order to support asset management decision-making

D.  

The process of review the best value compromise between a set of competing factors, in order to support asset management decision-making

Discussion 0
Questions 15

Which of the following has the biggest impact on cash flows?

Options:

A.  

Return on capital employed

B.  

Depreciation

C.  

Operational Expenditure (Opex)

D.  

EBITDA

E.  

Balance sheet

Discussion 0
Questions 16

Value based on AM is ......

Options:

A.  

Value creation

B.  

Waste elimination

C.  

Value objective

D.  

The Assets

Discussion 0
Questions 17

Which of the following typically describes an organization's spending plans for new assets?

Options:

A.  

Operational Expenditure (Opex) forecast

B.  

Insurance valuation

C.  

Procurement contract

D.  

Capital Expenditure (Capex) forecast

E.  

Asset valuation

Discussion 0
Questions 18

The Asset Management Policy should be…

Options:

A.  

effectively communicated, never reviewed, supported by top management, consistent with stakeholder requirements and aligned with other organisational policies

B.  

effectively communicated, regularly reviewed, supported by the risk teams, consistent with stakeholder requirements and aligned with other organisational policies

C.  

effectively communicated, regularly reviewed, supported by top management, consistent with stakeholder requirements and not aligned with any other organisational policies

D.  

effectively communicated, regularly reviewed, consistent with stakeholder requirements, supported by top management and kept confidential

E.  

effectively communicated, regularly reviewed, supported by top management, consistent with stakeholder requirements and aligned with other organisational policies

Discussion 0
Questions 19

When assessing risks, which of the following is a valid statement?

Options:

A.  

Risks can be assessed by calculating the product of their probability and frequency

B.  

Risks can be assessed by calculating the product of their consequences and occurrence

C.  

Risks can be assessed by calculating the product of their Mean Time Between Failure and Mean Time To Repair

D.  

Risks can be assessed by calculating the product of their possibility and Mean Time Between Failure

E.  

Risks can be assessed by calculating the product of their probability and consequences

Discussion 0
Questions 20

Which of the following is most likely to reduce a company's income?

Options:

A.  

Ageing assets

B.  

Poor asset condition

C.  

Capital investment in new assets

D.  

Increased number of asset failures that affect service levels

E.  

Interest rates

Discussion 0
Questions 21

The contents of an asset management policy can include:

Options:

A.  

The requirements of key stakeholders, roles and responsibilities, AM principles, framework for strategy and objectives, and review frequency

B.  

The mandated requirements, roles and responsibilities, key departments, framework for strategy, and review frequency

C.  

Mandated requirements, roles and responsibilities, AM principles, strategy framework, and AMP details

D.  

Mandated requirements, AM principles, roles and responsibilities, strategy framework, and commitment to continuous improvement

E.  

Mandated requirements, AM principles, roles and responsibilities, key risks, and review frequency

Discussion 0
Questions 22

Ignoring the time-based value of money, in Whole Life Cost Modelling, annualised costs are:

Options:

A.  

The sum of the maintenance and operating costs divided by the service life of the asset in years

B.  

The sum of the costs in the Create, Operate, Maintain and Disposal phases

C.  

The life cycle costs divided by the service life of the asset in years

D.  

The annual costs to operate and maintain the asset

E.  

The annual capital investment costs in the create and mid-life upgrade phases

Discussion 0
Questions 23

What is the most effective measure when determining the current health of your assets?

Options:

A.  

Condition assessment

B.  

Demand forecast

C.  

Maintenance reports

D.  

Asset age

E.  

Historical maintenance cost

Discussion 0
Questions 24

What is an Asset Management System as defined by PAS 55?

Options:

A.  

The asset information technology system used for collating and analysing asset data

B.  

The management system which organises and drives all asset management activities

C.  

The system by which organisations can manage and influence stakeholder requirements

D.  

The asset system which organises all data management activities

Discussion 0
Questions 25

Which are included in the asset life cycle?

Options:

A.  

Acquire - Corporate - Operate - Dispose

B.  

Acquire - Commission - Operate - Diaspora

C.  

Acquire - Commission - Operate - Dispose

D.  

Acquire - Commission - Performance - Dispose

Discussion 0
Questions 26

(Exposure to) the possibility of loss, injury, or other adverse or unwelcome circumstance; a chance or situation involving such a possibility, is the definition of .......

Options:

A.  

Value

B.  

Asset

C.  

Risk

D.  

Cost

Discussion 0
Questions 27

To successfully establish, operate and improve asset management within an organisation, it is essential that leadership, and commitment, is demonstrated by all levels of management – from senior executives to supervisors.

Options:

A.  

False

B.  

True

Discussion 0
Questions 28

How many roles are there in the IAM Competences Framework?

Options:

A.  

Five

B.  

Six

C.  

Seven

D.  

Three

Discussion 0
Questions 29

Holding equipment spare parts can be expensive. What is the best justification for holding spares?

Options:

A.  

When the original equipment manufacturer recommends spares should be held

B.  

When cost of downtime or service losses exceeds cost of holding spares

C.  

When maintenance is outsourced to a maintainer who doesn't hold spares

D.  

The organization has always held spares

E.  

The Maintenance Manager wants to hold spares

Discussion 0
Questions 30

Procurement and delivery of the solution to time, cost and quality targets. What phase is it?

Options:

A.  

Concept phase

B.  

Definition phase

C.  

Implementation phase

D.  

Handover and closeout phase

Discussion 0
Questions 31

IAM-based decisions produce real savings, where savings develop from, except ......

Options:

A.  

Efficiency gains

B.  

Cost Avoidance

C.  

Compliment asset

D.  

Cost Effectiveness

Discussion 0
Questions 32

You have been asked to optimise asset investment planning. What is the best source of information for this?

Options:

A.  

Tendered costs

B.  

Whole-life cost models

C.  

Engineering estimates

D.  

Suppliers' quotations

E.  

Published data

Discussion 0
Questions 33

An ISO 55000 asset management system provides the structure, methodology and mechanism to helping asset-intensive organizations deliver on their objectives.

Options:

A.  

True

B.  

False

Discussion 0
Questions 34

Which of these is NOT a key principle of asset management?

Options:

A.  

Linking decisions to the overall business objectives

B.  

Applying a whole-life perspective

C.  

Reducing the costs of investments

D.  

All of above false

Discussion 0
Questions 35

There are many factors that can drive the decommissioning of assets, except :

Options:

A.  

Obsolete technology

B.  

Compliance with changes in legislation

C.  

Excess of service capacity

D.  

Cost of retaining in service

Discussion 0
Questions 36

During the design phase the predicted life of an asset was determined to be 50 years. This life was applied as the asset’s depreciation life in the Fixed Asset Register. You have just completed an investment post project review and found the benefits have not been fully delivered, and never will be. You now believe asset’s useful life will be 30 years, what will you do with this information?

Options:

A.  

Feedback the new information for future modelling, project design, and build phases. Update the Asset Management Plan. Tell Top Management so they can start an investigation to find who was at fault

B.  

Feedback the new information for future modelling, project design, and build phases. Update the Asset Management Plan. Tell the maintenance team to reduce maintenance to help recover some of the costs

C.  

Feedback the new information for future modelling, project design, and build phases. Update the Asset Management Plan. Inform Finance so they can make any necessary adjustments to the asset’s value

D.  

Feedback the new information for future modelling, project design, and build phases. Update the Asset Management Plan. Inform Asset Management colleagues to start planning for a replacement

E.  

Feedback the new information for future modelling, project design, and build phases. Update the Asset Management Plan. Inform nobody else as this information will have no short to medium term effect

Discussion 0