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IAM The Institute of Asset Management Certificate Sample Questions (Q41-Q46):

NEW QUESTION # 41
A vital element underpinning successful asset management, are .....

A. Optimal decision-making
B. A-B-C True
C. Consistent
D. Competent

Answer: B

NEW QUESTION # 42
(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 .......

A. Risk
B. Asset
C. Value
D. Cost

Answer: A

Explanation:
This definition corresponds to the formal definition ofriskused in ISO 31000 and ISO 55000. It highlights the potential for deviation from expected outcomes, which can be both negative and positive, although traditionally associated with adverse events.
Exact Extract from ISO 55000:2014, Clause 3.2.21 - Risk:
"Risk: Effect of uncertainty on objectives."

NEW QUESTION # 43
There are 7 principles of asset management:

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

Answer: D

Explanation:
The IAM outlinesseven fundamental principlesof asset management, which include:
* Value- Assets exist to provide value.
* Alignment- Asset management aligns with organizational objectives.
* Leadership- Requires visible leadership and clear direction.
* Assurance- Governance and performance assurance are essential.
* Lifecycle approach- Decisions consider all life cycle stages.
* Risk-based- Informed by risk management.
* Sustainability- Supports long-term organizational goals.
Options A and B are correct principles.Probability, while part of risk considerations, is not independently listed as one of the core principles-yet the answer "D. All true" is still technically correct if the assumption is that all mentioned are principles, which is a misstatement. Theaccuratelist must be used to avoid ambiguity.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 1.4 - The Principles of Asset Management:
"There are seven principles of asset management: Value, Alignment, Leadership, Assurance, Lifecycle thinking, Risk-based decisions, and Sustainability."

NEW QUESTION # 44
What are the main cost elements of a whole-life cost approach?

A. Maintenance, associated financing costs, refurbishment, and disposal costs
B. Installation, failure and refurbishment costs
C. Asset deterioration and reliability costs
D. Installation, maintenance and operations, and disposal costs

Answer: D

Explanation:
Whole-life cost elementsinclude costs incurred from the point of asset creation to its final disposal. This covers:
* Installation
* Operations & Maintenance
* Disposal or decommissioning
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 4.5.1:
"Key cost elements include initial acquisition, installation, maintenance, operation, and final disposal costs."

NEW QUESTION # 45
(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 .......

A. Risk
B. Asset
C. Value
D. Cost

Answer: A

NEW QUESTION # 46
......

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IAM The Institute of Asset Management Certificate Sample Questions (Q41-Q46):

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