What is the definition of asset management in ISO 55001?

Asset management is the systematic process of coordinating a company’s financial, risk, operational, and other asset-related entities to increase the value of its assets. 

Assets are considered as anything that has potential value to an organisation. These include physical assets (equipment, machinery, and buildings) and non-physical assets (financial assets, intellectual property, and human capital). 

What does ISO 55001 asset management entail? 

ISO 55001 is a structure that defines the guidelines for effective asset management. It helps businesses proactively control their potential risks and asset management costs most effectively to encourage continuous value creation.

If you need help with your ISO 55001 certification, at Citation Certification we can help. We offer numerous in-house support systems and training to help your business manage and grow its assets effectively. 

Common standards that define asset management 

Asset management is a continuous process that spans the entire life cycle of an asset. It involves establishing strategies, evaluation, planning, and execution of plans. However, it’s worth noting that effective management of assets requires extensive interpretations. Also, different organisations have different levels of success. So, you need concrete documents that outline your process of asset management. 

Some of these documents include the PAS 55 2008, which the Institute of Asset Management launched. The British Standards Institution (BSI)’s publicly available specification was first initiated in 2004 to integrate specifications that objectively define asset management activities. 

Another document is the AMBoK – the Asset Management Body of Knowledge, provided by the Asset Management Council of Australia. AMBoK provides the principles that affect a company’s asset systems, including capabilities, learning, level assurance, and output focus of an organisation. 

The last document is ISO 55000, a series of international standards that define the principles and requirements for managing all types of assets.

• ISO 55000 2014 focuses on the overview, terminology, and principles
• ISO 55001 2014 deals with asset management systems requirements
• ISO 55002 2018 provides guidelines for the application and implementation of ISO 55001

What is the importance of ISO 55001? 

Complying with ISO 55001 is essential and can benefit your business in many ways. 

• This certification can support your organisation if it’s striving for constant improvement and a proactive culture. It also reflects best practices and advanced thinking in asset management. Thus, it can enhance your business’s effectiveness to realise more value from its assets.
• Encouraging international business growth – compliance with this standard also shows that your organisation meets the requirements of an internationally approved asset management system, hence supporting global business growth.
• Risk management – the continuous review of asset performance, procedures, and processes ensures informed decisions that balance performance data, risk, and cost to enhance effectiveness and efficiency.
• Implementing and following the ISO 55001 asset management framework is a great way to demonstrate to stakeholders that your organisation manages its operations, costs, performance, and risks, effectively. Creating confidence in stakeholders can help attract new business acquisitions and investment opportunities.
• A sound Asset Management System can improve your return on investment and facilitate cost reduction without compromising your organisation’s ultimate performance.