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‘Line of sight’ is a key concept in IAM, referring to how all actions—regardless of position or role—are visibly and logically aligned to the organization's asset management objectives.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 1.5 – Line of Sight:

“Line of sight is achieved when everyone in the organization understands how their activities contribute to delivering value from assets.”

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."

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.”

There isno universally standardized risk matrixin ISO 55000 or ISO 55002. Risk appetite and operational context vary, so each organization must tailor its own framework.

Exact Extract from ISO 55002:2018, Annex D – Risk Matrix Use:

“There is no universal risk matrix provided. Organizations must develop a matrix that reflects their own risk criteria, tolerances, and operational realities.”

ISO 55000 provides a clear and inclusive definition of anassetthat moves beyond the traditional financial concept. It includesanything that can deliver valueto an organization, either now or in the future. This may be physical, intangible, or financial.

Arefers to equity investments—not the scope of ISO 55000.

BandDare unrelated to asset management as defined in this standard.

Cmatches the ISO definition verbatim.

Exact Extract from ISO 55000:2014, Clause 3.2.1 – Definition of Asset:

“An asset is an item, thing or entity that has potential or actual value to an organization.”

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.”

Comprehensive and Detailed in Depth Explanation along with Exact Extract from IAM's five subject areas:

Asset Management promotes safer, more efficient, and more sustainable operations. Increasing negative health impacts contradicts IAM goals.

Option Ais valid—effective asset management reduces CAPEX through optimized planning.

Option Caligns with environmental sustainability principles.

Option Drefers to compliance, a key governance and risk management objective.

Extract from IAM Document – Asset Management: An Anatomy (v4):

"It enables organizations to manage risk, improve safety and reliability, reduce costs, and enhance environmental and regulatory compliance."

(Section 2.2 – The Benefits of Asset Management)

TheAsset Management Systemrefers to themanagement frameworkof policies, processes, and tools that collectively enable the achievement of asset-related objectives—not just IT or data systems.

Exact Extract from PAS 55-1:2008, Clause 3.3.1:

“Asset management system: The integrated set of processes, plans, and tools that collectively define and drive the asset management activities within the organization.”

TheImplementation Phaseinvolves translating approved asset plans into physical or system outputs. It encompassesprocurement, execution, and deliveryto specification and budget constraints.

Concept and definition phasesprecede this stage.

Handoverfollows this phase and deals with asset operational readiness.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 3.4.2 – Life Cycle Stage: Implementation:

“This phase includes procurement, construction, installation, testing, and commissioning of the asset or solution. It is where time, cost, and quality performance is most closely monitored.”

Apolicyis a formal statement of intent from senior leadership, expressing organizational direction, intent, and principles.

Exact Extract from ISO 55000:2014, Clause 3.1.7 – Definition of Policy:

“Policy: Intentions and direction of an organization, as formally expressed by its top management.”