Asset Management Risk-Based Asset Management

Question 1

What is the primary goal of risk-based asset management?

Accepted Answer

Prioritize maintenance and investment decisions based on risk and consequence

Answer

Reduce total asset count

Answer

Eliminate all asset failures

Answer

Maximize depreciation tax benefits

Question 2

How is risk typically calculated in a risk matrix?

Accepted Answer

Risk = Probability of failure × Consequence of failure

Answer

Risk = Cost ÷ Age

Answer

Risk = Downtime + Repair cost

Answer

Risk = Asset value − depreciation

Question 3

Which failure analysis method uses a tree diagram to trace how top-level failures can be caused by combinations of lower-level events?

Accepted Answer

Fault Tree Analysis (FTA)

Answer

Failure Mode and Effects Analysis (FMEA)

Answer

Root Cause Analysis (RCA)

Answer

Bow-Tie Analysis

Question 4

What does FMEA stand for in asset risk management?

Accepted Answer

Failure Mode and Effects Analysis

Answer

Financial Maintenance and Evaluation Audit

Answer

Fixed Margin Efficiency Assessment

Answer

Fault Monitoring and Error Audit

Question 5

In risk-based inspection (RBI), inspection intervals are determined primarily by:

Accepted Answer

The assessed probability and consequence of failure

Answer

Asset age alone

Answer

Manufacturer recommendations only

Answer

Regulatory schedules regardless of condition

Question 6

What is a 'critical asset' in the context of risk-based asset management?

Accepted Answer

An asset whose failure would cause significant safety, financial, or operational impact

Answer

An asset older than 20 years

Answer

An asset with the highest replacement cost

Answer

An asset owned by a regulated utility