What is the definition of asset management in ISO 55001?

Every business has assets – whether they’re physical assets like equipment, machinery, and buildings, or intangible resources like financial investments, and intellectual property. But just having assets isn’t enough to drive value – you need to manage them effectively. Asset management, at its core, is the strategic coordination of these resources to maximise their contribution to a company’s success. How does this drive success? Keep reading to find out. In this article, we dive into the comprehensive definition of asset management as outlined in the ISO 55001 certification and discuss how this standard can boost your organisation’s performance.

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 growth in value.

Common standards that define asset management

Asset management is an ongoing process that covers an asset’s entire life cycle. It involves developing strategies, evaluating options, planning, and executing those plans effectively. To achieve success, organisations must rely on clear documentation that outlines their approach. While results can vary between organisations, effective asset management requires careful analysis and informed decision-making to maximise value.

There are several documents that support effective Asset Management Systems. One of these documents is PAS 55, launched in 2008 by the Institute of Asset Management. Another is the Asset Management Body of Knowledge (AMBoK), developed by the Asset Management Council of Australia. This document outlines key principles influencing an organisation’s asset systems, including capabilities, learning, assurance levels, and output focus.

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 deals with Asset Management Systems requirements, and ISO 55002 2018 provides guidelines for the application and implementation of ISO 55001.

What are the benefits of ISO 55001?

An ISO 55001 certification can benefit your business in many ways:

• Constant improvement: this certification helps your organisation foster continuous improvement and a proactive culture. It promotes best practices in asset management, boosting efficiency and unlocking more value from your assets.
• Encouraging international business growth: compliance with this standard also shows that your organisation meets the requirements of an internationally approved Asset Management System, which can support 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.
• Attract new business: demonstrates to stakeholders that your organisation manages its operations, costs, performance, and risks, effectively – which creates confidence and can help attract new business acquisitions and investment opportunities.
• Return on investment: a sound Asset Management System can improve your return on investment and facilitate cost reduction without compromising your organisation’s ultimate performance.

Driving success with ISO 55001

Adopting ISO 55001 is a game-changer for any organisation looking to maximise the value of its assets. By implementing the principles and frameworks outlined in this standard, businesses can strategically manage their resources, mitigate risks, and enhance their overall performance. ISO 55001 isn’t just about compliance; it’s about building a strong foundation for long-term success. If your goal is to unlock the full potential of your assets, ISO 55001 provides the roadmap to achieve it.

Citation Certification can help

If you need help with your ISO 55001 certification, we’ve got you covered. We offer numerous in-house support systems and training to help your business manage and grow its assets effectively. Contact us here to learn more.