Which term describes a formal plan that outlines how assets will be managed, including priorities and objectives, over the long term?

• A. Asset management policy
• B. Asset management planning
• C. Asset management strategy
• D. Asset lifecycle management

Answer: (C)

In asset management, the long-term, formal plan that defines how assets will be managed, including priorities and objectives, is the asset management strategy. It sets the direction for decisions about investments, maintenance, risk, and performance targets over multiple years, answering how service levels will be achieved within given resources and risk tolerance. This differs from an asset management policy, which is a broad statement of intent and principles rather than a plan with specific priorities; from asset management planning, which develops concrete programs and budgets (often for shorter horizons); and from asset lifecycle management, which focuses on managing assets through their entire life cycle rather than establishing long-term direction.