IAM Updated IAM-Certificate Exam Questions and Answers by lloyd

Thepolicydefines the guiding principles, while thestrategytranslates these into organizational objectives and the approach to achieve them.

Exact Extract from ISO 55001:2014, Clause 5.2 and Clause 6.2:

“The policy provides the framework for objectives. The strategy identifies how to achieve them through organizational planning and resource alignment.”

Option D covers all key elements described in ISO 55001: compliance, alignment, clarity of roles, continuous improvement, and a basis for strategic and tactical planning.

Exact Extract from ISO 55001:2014, Clause 5.2:

“The policy should include: appropriateness, commitment to compliance and improvement, framework for setting objectives, and alignment with strategy.”

IAM-compliant practices help generate organizational savings by improving efficiency, reducing unnecessary costs, and enabling cost-effective decision-making. These outcomes are typically derived from structured planning and lifecycle optimization.

Efficiency Gains: Streamlining processes to use fewer resources.

Cost Avoidance: Proactively preventing unnecessary expenditure through better decisions.

Cost Effectiveness: Choosing actions that yield the best return on investment.

Compliment Assetis not a relevant financial or asset management term—it appears to be a typographical or conceptual error and is therefore the correct answer to identify as invalid.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 2.2 – The Benefits of Asset Management:

“Benefits include cost reduction, efficiency gains, increased asset performance, and risk-informed cost avoidance.”

An asset management system, especially when aligned with ISO 55000, delivers comprehensive business benefits, including structured role clarity, procedural discipline, and the integration of industry best practices. This leads to more transparent governance, accountability, and performance management across the asset lifecycle.

Ais true: It transforms informal practices into formal procedures.

Bis true: Clearly defines roles and governance responsibilities.

Cis true: Embeds global best practices via systematic frameworks.

Exact Extract from ISO 55000:2014, Clause 3.4:

"An asset management system enables an organization to achieve its asset management objectives and derive value from its assets... It formalizes roles and responsibilities and incorporates recognized practices."