What is Asset Management

asset labelsISO 55000 defines Asset management as the “coordinated activity of an organization to realise 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 organization”. This is deliberately wider than physical assets but these form an important focus for more organizations.
(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 organizational 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.

ISO5500 is complex but at www.sitr.com we can help you through the minefield, help you manage your assets and help your realise the best possible return when you assets reach the end of their useful life”.

Source: The Institute of Asset Management.

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