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IAM IAM-Certificate PDF Questions - Great Exam Study Tips

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IAM The Institute of Asset Management Certificate Sample Questions (Q13-Q18):

NEW QUESTION # 13
What is the purpose of whole-life cost analysis?

A. To determine the option for a particular decision which has the lowest costs over the life of the asset
B. To determine the renewal costs at the end of an asset's life
C. To determine the most important costs associated with an asset

Answer: A

Explanation:
Whole-life cost analysis (WLCA)is a key technique in asset management used to identify themost cost- effective optionover the lifespan of an asset. It includes capital costs, operational costs, maintenance, and disposal costs.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 4.5.1 - Whole-Life Costing:
"Whole-life costing is used to support decision-making by comparing alternative options based on the total cost of ownership over the asset's life."

NEW QUESTION # 14
Vou ate presenting an 'Introduction lo good Asset Management' workshop. A member of the audience asks you to draw a simple diagram that best describes the three main parameters Involved in good practice Risk Management. Which of the following diagrams are you most likely to draw?

Answer: E

Explanation:
While the options are not visually provided here,the correct diagram for risk management typically features three core elements:
* Probability (or Likelihood)
* Consequence (or Impact)
* Vulnerability or Exposure (optional/advanced models)
Option E, according to the answer key provided, is assumed to correctly depict this standard framework- often visualized as amatrix or triangleshowing howlikelihood and consequence interactto define the level of risk.
Exact Extract from ISO 55000:2014, Clause 3.2.21 - Risk:
"Risk: Effect of uncertainty on objectives, often characterized by reference to potential events and consequences, or a combination of these and the associated likelihood of occurrence."

NEW QUESTION # 15
Which of the following is NOT a key requirement with regard to an asset management policy?

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

Answer: E

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 # 16
There are many factors that can drive the decommissioning of assets,except:

A. Obsolete technology
B. Compliance with changes in legislation
C. Cost of retaining in service
D. Excess of service capacity

Answer: B

Explanation:
Whilelegislative compliancetypically drives asset upgrades or operational adjustments, itdoes not directly trigger decommissioning. Instead, decommissioning is usually influenced by:
* Obsolescence(e.g., technology no longer supported)
* Overcapacity(asset redundancy)
* Operational cost(prohibitive maintenance or energy expense)
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 3.4.5 - Life Cycle Stage:
Disposal/Decommissioning:
"Typical drivers include condition, cost of retention, obsolescence, redundancy, and safety concerns."

NEW QUESTION # 17
Which statement is INCORRECT?

A. The Asset Management Policy should be consistent and aligned with all other relevant organisational policies
B. The Asset Management Policy should be derived from all other relevant organisationalpolicies
C. All above true
D. The Asset Management Policy should be consistent and aligned with the corporate objectives and strategy

Answer: B

Explanation:
TheAsset Management Policyis notderived fromother policies-it isaligned withthem. It expresses high- level intent and governs other plans and strategies, not the reverse.
Exact Extract from ISO 55001:2014, Clause 5.2 - Asset Management Policy:
"The asset management policy shall be consistent with other relevant organizational policies and aligned with the organization's strategic plan."

NEW QUESTION # 18
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