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What is ISO 55070:2014?

ISO 55070:2014, also known as "Guidelines for the Alignment of Asset Management, Finance and Procurement," is an international standard that provides organizations with best practices for integrating their asset management systems with finance and procurement processes. This standard aims to ensure that financial and procurement decisions take into account the full life cycle costs and risks associated with managing assets.

Key Features of ISO 55070:2014

ISO 55070:2014 outlines several key features that organizations can follow to effectively align asset management, finance, and procurement:

Strategic Alignment: The standard emphasizes the need for organizations to align their asset management strategies with their overall business objectives. By doing so, organizations can optimize financial investments and better manage risks associated with assets throughout their life cycle.

Integration of Processes: ISO 55070:2014 encourages organizations to integrate their asset management, finance, and procurement processes. This integration ensures that financial and procurement decisions are based on accurate and up-to-date information about the assets' condition, performance, and expected future costs.

Whole Life Cycle Cost Approach: The standard highlights the importance of considering the full life cycle costs of assets. This includes not only the initial purchase price but also costs associated with maintenance, operation, renewal, and disposal. By adopting a whole-life cycle cost approach, organizations can make informed decisions about asset management and allocate resources more effectively.

Risk Management: ISO 55070:2014 offers guidelines for organizations to identify, assess, and manage risks associated with their assets. By incorporating risk management practices into decision-making processes, organizations can proactively address potential risks and mitigate their impact on asset performance and financial outcomes.

Benefits of Implementing ISO 55070:2014

Implementing ISO 55070:2014 brings several benefits to organizations:

Optimized Asset Management: By aligning asset management, finance, and procurement, organizations can optimize their assets' performance and maximize their value to the business.

Informed Financial Decisions: The integration of financial and asset management processes enables organizations to make well-informed financial decisions based on accurate data about assets' costs, risks, and performance.

Improved Risk Management: ISO 55070:2014 helps organizations identify and manage risks associated with assets more effectively, reducing the likelihood of unexpected failures and costly disruptions.

Enhanced Compliance: Implementing this standard helps organizations ensure compliance with applicable regulations and industry guidelines related to asset management, finance, and procurement.

Conclusion

ISO 55070:2014 provides organizations with a framework to align asset management, finance, and procurement for improved decision-making and optimized use of resources. By integrating these processes, organizations can achieve better performance from their assets, make informed financial decisions, manage risks efficiently, and ensure compliance with relevant standards and regulations.

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