What is Asset Management?

ISO 55000 defines Asset management as the "coordinated activity of an organisation to realize value from
assets". In turn, Assets are defined as follows: "An asset is an item, thing or entity that has potential or
actual value to an organisation". This is deliberately wider than physical assets but these form an important
focus for more organisations.

Do you mean Asset Management or Managing Assets? Find out here...

ISO Technical Committiee 251 (TC251) are producing guidance to clarify specific aspects of
ISO 55000. Released in May 2017 "Managing Assets in the context of Asset Management"
is a simple but informative clarification on what Asset Management is and isn't
(NB there are important qualifying Notes to these definitions, which are set out in ISO 55000).
Asset Management involves the balancing of costs, opportunities and risks against the desired performance
of assets, to achieve the organisational objectives. This balancing might need to be considered over
diffrerent timeframes.
Asset management also enables an organzation to examine the need for, and performance of, assets and
asset systems at different levels. Additionally, it enables the application of analytical approaches towards
managing an asset over the different stages of its life cycle (which can start with the conception of the need
for the asset, through to its disposal, and includes the managing of any potential post disposal liabilities).
Asset Management is the art and science of making the right decisions and optimising the delivery of value.
A common objective is to minimise the whole life cost of assets but there may be other critical factors such
as risk or business continuity to be considered objectively in this decision making.

Anatomy of Asset Management

We have produced a very readable (we think!) booklet: "Asset Management - an Anatomy". You and your
colleagues can download this free of charge from our website www.theIAM.org/AMA (please download
your own copies and do not pass them on!).
This introduces the whole discipline of asset management - as distinct from the Management Sustem, as
implemented in an organisation. The focus of thie IAM is the professional development and recognition of
competence and the Anatomy describes 39 'Subjects that form the basis of the Body of Knowledge with
which a professional asset manager should become familiar.
The IAM will be gradually publishing documents that amplify and explain these Subjects in more detail:
see Subject Specific Guidelines.