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.”
