HELPFUL FEATURES OF IAM IAM-CERTIFICATE PDF QUESTIONS

Helpful Features of IAM IAM-Certificate PDF Questions

Helpful Features of IAM IAM-Certificate PDF Questions

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IAM The Institute of Asset Management Certificate Sample Questions (Q71-Q76):

NEW QUESTION # 71
When assessing risks, which of the following is a valid statement?

  • A. Risks can be assessed by calculating the product of their probability and consequences
  • B. Risks can be assessed by calculating the product of their Mean Time Between Failure and Mean Time To Repair
  • C. Risks can be assessed by calculating the product of their possibility and Mean Time Between Failure
  • D. Risks can be assessed by calculating the product of their probability and frequency
  • E. Risks can be assessed by calculating the product of their consequences and occurrence

Answer: A

Explanation:
Again, the recognized method for risk evaluation aligns with ISO 31000 and ISO 55000:
Risk = Probability × Consequence
This is used across risk matrices, risk registers, and decision frameworks.
Exact Extract from IAM - Risk Management in Asset Management:
"The basic formula for quantifying risk is: Risk = Likelihood × Consequence."


NEW QUESTION # 72
The term optimizing describes:

  • A. The process of review the best value compromise between a set of competing factors, in order to support asset management decision-making
  • B. The process of control the best value compromise between a set of competing factors, in order to support asset management decision-making
  • C. The process of establishing the best value compromise between a set of competing factors, in order to support asset management decision-making
  • D. The process of Maintenance the best value compromise between a set of competing factors, in order to support asset management decision-making

Answer: C

Explanation:
Optimizingis a core concept in asset management. It refers to establishing a compromise between performance, cost, and risk-across the asset lifecycle. This balancing act is based on data-informed decision- making and scenario analysis.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 4.5 - Decision-Making:
"Optimization is the process of determining the best value compromise between conflicting priorities such as cost, risk, and performance."


NEW QUESTION # 73
There are 7 principles of asset management :

  • A. Lifecycle
  • B. Value added
  • C. Probability
  • D. All true

Answer: D


NEW QUESTION # 74
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.

  • A. False
  • B. True

Answer: B

Explanation:
Leadership and commitmentfrom all tiers of the organization are foundational to the success of any asset management system. ISO 55001 places special emphasis onvisible support from top management, which sets the tone for engagement, resource allocation, and continuous improvement.
* Without this leadership, asset management initiatives often fail to embed within the culture or gain strategic relevance.
Exact Extract from ISO 55001:2014, Clause 5.1 - Leadership and Commitment:
"Top management shall demonstrate leadership and commitment with respect to the asset management system by ensuring the integration of asset management requirements into the organization's business processes."


NEW QUESTION # 75
Which of the following is most likely to reduce a company's income?

  • A. Capital investment in new assets
  • B. Interest rates
  • C. Increased number of asset failures that affect service levels
  • D. Ageing assets
  • E. Poor asset condition

Answer: C

Explanation:
Frequent asset failures result indisruption, penalties, customer dissatisfaction, andlost revenue. This has a direct impact on incomemore than long-term financial or condition-based issues.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 2.2 - Business Impact of AM:
"Poor reliability or failure of assets directly affects service levels and revenues, leading to reputational and financial consequences."


NEW QUESTION # 76
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