Understanding And Complying With ISO 55001: Part 1 in a 3 Part Series

Context of the Organization (Part one of three) by Darrin Wikoff

Asset Management provides assurance that assets will fulfill their required purpose relative to the stated value defined by the business’ stakeholders.  Therefore, asset management can be defined as the coordinated activity of an organization to protect, optimize or realize value from assets during the period of accountability. Methods of assuring value include:
-    Balancing cost,
-    Controlling risk, and
-    Monitoring performance of both assets and the asset management system.

The first set of asset management system requirements communicated by ISO 55001 deals with the manner in which Asset Managers have defined the “stated value” of assets and the relationship of the system architecture to other decision making, governance and management systems utilized by the business’ stakeholders. These requirements are defined in Section 4 – Context of the Organization.
Demonstrate that your organization has considered internal and external risk factors that have the potential to influence business outcomes when determining the objectives of your asset management system.  Internal risk refers to gaps in internal processes, and external risk refers to political, economic, regulatory or other factors beyond the local organization's control.
Demonstrate that your organization has identified both the stakeholder and their requirements when determining asset management objectives, and provide evidence that the stakeholder is integrated in decision making processes.  Stakeholders may be external to the organization, including government agencies, shareholders and customers.
Demonstrate that the identification of "Assets" within the asset management system is consistent with the Asset Management Policy and other management systems, if applicable. “Assets” exist within an organization to provide value to the organization and its stakeholders. Assets, by this definition are:
-    Any item that has a potential value within an organization,
-    Any item that has an actual value to an organization,
-    A group of items that has a potential or actual value, regardless of the individual item value (e.g. Asset System),
-    A group of items that have a common characteristic that translates into value, regardless of the individual item value (e.g. Asset Type).

Value is defined by the organization that has accountability for the asset during a specific period within the asset life cycle. Value can be:
-    Tangible or intangible,
-    Financial or non-financial,
-    Equity or liability (gains or losses), and
-    Risk or benefit.

Both value and the period of asset accountability may change throughout the asset life cycle, which begins at asset creation and ends when the asset no longer has value to any single organization.
Document within the Strategic Asset Management Plan those assets that are or will be governed by the asset management system, and the rational for determining applicability and scope relative to stakeholder expectations.  Demonstrate the link between asset management decisions and other management systems, if applicable.