New: ISO/TS 55010 just released!
Guidance on the alignment of financial and non-financial functions in asset management
This Technical Specification is a guideline enabling organizations to better understand why and how alignment between financial and non-financial functions is important in realizing value from assets.
Multi-functional and multidisciplinary
Asset Management is a function not exclusive to any one part of the organization but should be seen as multi-functional and multidisciplinary. Aligned financial planning, accounting, decision making and reporting are crucial aspects of effective asset management. Conversely asset management has major impacts on financial planning, decision making and reporting. Successful achievement of organizational objectives requires close coordination and alignment between the asset management, finance and accounting functions.
Effective and efficient interactions
This Technical Specification provides advice on how organizations can achieve effective and efficient interaction between asset management, finance and accounting functions, which will generally result in improved internal controls, more transparent and complete and timely reporting, commonly agreed taxonomy relating to assets, a more efficient measurement of key performance indicators and enhanced availability and accuracy of information for decision makers. These improvements will without a doubt contribute to the achievement of the organization’s strategic objectives.
The new ISO/TS 55010 presented by our experts:
ISO experts of TC251 explain the benefits of the new ISO/TS 55010, and how it addresses the alignment of financial and non-financial functions in asset management. Watch the videos by clicking here.
Learn more about ISO/TS 55010 here.
Assets are fundamental to your organization
Managing them in a controlled manner optimizes cost and risk, allowing timely and fact based decisions and delivers value in meeting your objectives.
What is Asset Management?
Asset management coordinates the financial, operational, maintenance, risk, and other asset-related activities of an organization to realize more value from its assets. This international standard suite focuses on managing physical and intangible assets.
What is ISO 55001?
ISO 55001 defines the requirements for a management system for asset management.
The ISO 55001 management system provides a framework to establish asset management policies, objectives, processes and governance, and facilitates an organization's achievement of its strategic goals. ISO 55001 utilizes a structured, effective, and efficient process that drives continual improvement and ongoing value creation by managing asset-related cost, performance and risk. ISO 55000 and ISO 55002 complement ISO 55001 by providing the overview, principles, and terminology (ISO 55000) and guidance for its application (ISO 55002).
This standard focuses on the need for a management system, and thus does not specify financial, accounting, or technical requirements for managing specific asset types.
Why is ISO 55001 important?
Compliance with the ISO 55001 standard can support organizations that are striving for a culture of proactive, continual improvement, and can drive an organization's effectiveness and efficiency in the realization of increased value from its assets. It reflects the latest thinking and best practices in asset management.
Developing and implementing an asset management framework based on the ISO 55001 standard demonstrates to internal and external stakeholders (e.g. regulators, customers, insurers) that the organization manages its performance, risks, and costs in a very effective and efficient manner.
Recognized globally, the ISO 55001 management standard offers organizations a common language and a trustworthy decision making framework enabling consistency in asset management practices. It aligns with other ISO management standards such as ISO 9001, ISO 14001 and ISO 31000, and can contribute to an organization's development of a coherent set of management practices across all facets of its operation.
Key benefits of adopting ISO 55001
- Performance improvements: Effective and efficient management of short and long term opportunities improves sustainability, allowing the organization to consistently meet or exceed the performance and social responsibility expectations of stakeholders.
- Cost improvements: An asset management system facilitates improved return on investment and cost reduction metrics without sacrificing short or long term organizational performance. Additionally, it improves the asset value to advance the bottom line.
- Management of risk: The ongoing review of processes, procedures, and asset performance enables informed management decisions that balance cost, risk, and performance data to improve organizational efficiency and effectiveness.
- Assurance of business growth and improvement: A robust asset management system aids improvements with formal, collaborative, prioritized, and coordinated implementation plans that enable the entire organization to communicate and understand the goals and commitments.
- Reliable decision making: Implementing an asset management system drives reliable decision making for the development, coordination, and control of asset related activities. It also aligns these activities with core organizational objectives.
- Enhanced stakeholder confidence through compliance and improved reputation: Using the ISO 55001 standard, based on the guidance of ISO 55002, supports a clear policy and strategy that maintain and continuously improves the asset management system and demonstrates alignment with other management systems.
Follow this link for case studies highlighting the benefits of adopting ISO 55001.
Is ISO 55001 for me?
All asset-intensive organizations, public or private, with either tangible or intangible assets, can benefit from the use of ISO 55001. In particular, organizations aiming to improve the value of their assets, or organizations managing assets owned by a client, can leverage an asset management system that complies with International Standards. Examples of such organizations include:
- Infrastructure and industrial sectors (energy - production, transmission and distribution, water and wastewater services, telecommunications, railways, urban transit...)
- Infrastructure-oriented "public services" (airports, hospitals, roads…)
- All economic sectors where production or services are regulated by government agencies
- Capital-intensive industries and high value-added companies (mining, petrochemical, manufacturing…)
- Real estate sector (residential, commercial, cultural...)
- Service organizations (software, consulting, professional services…)
Who needs to be involved?
Asset management is everyone’s business and encompasses design and development, contract management, procurement, supply chain, operations, maintenance, marketing, public relations, customer services, human resources, risk, document and data control, health, safety and environmental, legal, finance, intellectual property, and more. An asset management system develops a collaborative and engaging relationship between these disciplines.
Auditing to ISO 55001
Do you need advice about auditing to ISO 55001?
A key standard you should refer to is ISO 19011:2011 Guidelines for auditing management systems. Also note that ISO 17021-5 Conformity assessment -- Requirements for bodies providing audit and certification of management systems highlights the competence requirements for auditing and certification of asset management systems.
Achieving the UN Sustainable Development Goals
Good asset management is a key enabler for organizations seeking to contribute to the achievement of the United Nations' Sustainable Development Goals (SDG). Find out how asset management contributes directly to seven of the SDG in this article.
Who are we?
We are the ISO Technical Committee for Asset Management Systems responsible for the development of the ISO 55000 family of standards. These standards define good practices in Asset Management and requirements for a management system. The standards apply to all types of assets and to all organizations.
- Promote the benefits of Asset Management externally and internally
- Receive feedback and advance the discipline of Asset Management
- Align and develop new products to improve and expand the understanding of Asset Management
Asset Management Tidbits #7
Asset Management Plan - documented information that specifies the activities, resources and timescales required for an individual asset, or a grouping of assets, to achieve the organization’s asset management objectives.
The asset management plans themselves should define the activities to be undertaken on assets, and should have specific and measurable objectives (e.g. timeframes and the resources to be used). These objectives can provide the opportunity for alignment of operating plans with the organizational plan and any unit level business plans.
Find out more about ISO 55001
We strive to expand the large body of knowledge that already exists related to Asset Management. Please click here for more information.
Asset management – Overview, principles and terminology
Asset management – Management Systems – Requirements
Asset Management – Guidelines for the application of ISO 55001
NEW: ISO/TS 55010:2019
Asset Management – Guidance on the alignment of financial and non-financial functions in asset management
ISO 55000 and ISO 55001 are currently available in English, French, Chinese, Dutch, Farsi, Finnish, Japanese, Portuguese, Russian, Serbian, Spanish and Swedish. ISO 55002 and ISO 55010 are gradually being translated into most of these languages.
Buying the ISO 55000 series
Related ISO pages
Who is developing ISO 55001?
An international cross-sector expert technical committee called ISO/TC 251 created the current standards and works today to continue improvements for the future. Delegations from more than 35 national standardization bodies contributed to the standards and many stakeholders from various asset management institutes, councils, and associations continue to participate today.
What is TC 251 working on?
Asset Management is a fast evolving discipline and TC 251 is collecting feedback, improving and expanding the ISO 5500x series of standards. Find out more here.
Become a member of TC 251
All experts in asset management are welcome to join our group to share their experience and help shape future standards. Contact your national standard body who will guide you through the process.