New International Standards on Asset Management due in January 2014

27 November 2013

Managing assets means more than just taking care of financial wealth and incorporates measures such as physical assets. The need for guidance in this area on a global level is reflected in the move by ISO (International Organization of Standardization) to develop an asset management standard suite. The new standards which are due to publish in January 2014, will be based on the PAS 55 Asset Management specifications sponsored by the Institute of Asset Management.  

The international standard suite will comprise three documents which can be used by organizations of all sizes and sectors:

ISO 55000 Asset Management – Overview, principles and terminology

ISO 55001 Asset Management –  Requirements

ISO 55002 Asset Management – Guidelines on the application of ISO 55001

Committee members from the global asset management community across 40 countries were involved in the development of the suite. Some of the experts from the UK include the Institution of Mechanical Engineers, Transport for London, Network Rail, Royal Institution of Chartered Surveyors, Department for Transport and the Institute of Asset Management. 

David McKeown, Chief Executive of the Institute of Asset Management and Chairman of the BSI committee responsible for the ISO 55000 series, says “Understanding of asset management has developed significantly over the past decade, facilitated by PAS 55. The publication of these ISO standards is an important step in continuing that progress and we are delighted that the international community wanted to recognise the base document by adopting the ‘55’ designation. The IAM is committed to convergence of thinking and worldwide cooperation and the ISO 55000 suite will help enormously.” 

ISO 55000 suite will follow the new ISO structure for management system standards by adopting common terminology and will be also applicable to all assets from physical to financial. It will particularly benefit businesses such as utilities or transport providers in the private and public sector, facing a regulatory pressure to manage assets.

In general the benefits of asset management include:

  • Improved health, safety and environmental performance
  • Optimized return on investment and/or growth
  • Long-term planning, confidence and performance sustainability
  • The ability to demonstrate best value for money within constrained budgets
  • Evidence to demonstrate legal, regulatory and statutory compliance
  • Improved risk management and corporate governance with a clear audit trail
  • Enhanced customer satisfaction from improved performance and control of product/service delivery to the required standards
  • Demonstrating that sustainable development is actively being considered within the management of the assets over their life cycles

ISO 55000 suite can help businesses to:

  •  Establish an asset management system to optimally and sustainably manage assets
  • Implement, maintain and improve an asset management system
  • Comply with asset management policy and strategy
  • Demonstrate compliance to others
  • Seek certification of their asset management system by an external organization or make a self-determination and self-declaration of compliance

Anne Hayes Head of Market Development for Governance & Risk at BSI says, “The need for improving business reputation and trust is a growing one and now a strong asset management system can help. The ISO 55000 suite will enable businesses to improve corporate reputation and directly influence financial success. This may include enhanced shareholder value, improved marketability of product/service, greater staff satisfaction and more efficient and effective procurement from the supply chain.”