What is ISO 55001?

What is ISO 55001

If you want to learn about the asset management system that ISO 55001 provides, then we advise that you read this article!

All organizations and business establishments have assets. It is impossible to operate any kind of endeavor without the use of assets, thus, the formation of asset management systems has become increasingly valuable to all kinds of organizations. Such asset management practices have increasingly become useful specifically for the following organizations that employ the heavy use of its assets:

  • Construction firms
  • Facilities and property management institutions
  • Manufacturing companies
  • Utility companies
  • Logistics and distribution organizations

The example of organizations stated above employs heavy reliance on its fixed and other assets. If these organizations do not have an effective and efficient asset management system, it will result in an atrocious amount of losses for the company.

This has resulted in the development of ISO 55000 which formalizes the standards needed for asset management systems worldwide. This standard is based on the PAS 55 that was issued by BSI or the British Standards Institution. Having PAS 55 as its basis for asset management practices, the International Organization for Standardization has outlined a framework for the general principles, procedures, processes, documentation, and requirements that are needed to establish the best practices for an asset management system’s implementation.

What does an ISO 55001 do?

Assets are considered as wheels of the organization. Without it, an organization cannot exist. All types of establishments and businesses depend on assets which cause an inflow of economic resources to the organization. Assets include all tangible and intangible properties – from properties, plant, and equipment up to patents and other intellectual properties owned by the organization. The income potentiality of an asset also depends on how the organization manages such an asset.

Therefore, it is critical that an organization establish a formal set of principles for optimizing the maximum potential of such assets and this is exactly what ISO 55001 is. The asset management system which is commonly referred to as AMS provides guidance and structure to manage and minimize all risks of an organization to an appropriate level. It also does benchmark performances in all units of the organization to strengthen its financial position and performance.

AMS also has a proven track record of providing outstanding growth strategies that are in line with an organization’s overall goals and objectives.

What are the Benefits of ISO 55001 to an Organization?

It had already been discussed above how ISO 55001 can manage the risks that are associated with owning assets. To lessen these risks means that the organization is optimizing the profitability and rewards of an asset during its lifecycle.

In this section, we have listed the benefits that an organization can obtain by incorporating ISO 55001’s asset management system:

  • Realization of an asset’s income potential during its lifecycle
  • Having a competitive advantage against organizations that are not ISO 55001 certified
  • Increased accountability and business transparency
  • Reduction in the risks that are associated with owning assets
  • Prioritizing business growth through the efficient and effective use of economic resources

By reaching the end of this article, you now know the importance of having optimum asset management practices and how it can drive any organization to its success!