These standards exist for a reason: to regulate the boundaries under which physical assets are managed in order to best prevent failure or mishap. When critical assets fail, the results are catastrophic. Unplanned shutdowns expose companies to financial challenges on several fronts – including repair, replacement, and lost revenue – while simultaneously exposing the company to increased environmental and safety hazards. Just recently, an incident of equipment failure at Westlake Chemical came with the price tag of $40 million dollars.

It is for this reason that regulatory adherence is so critical. A prime example is ISO 55000. It helps companies reduce risk of equipment failure by establishing a prioritized approach to asset integrity management. It incorporates key performance indicators and prioritizes inspection intervals according to assessed risk, so that assets running below peak performance are inspected more urgently. Through the establishment of comprehensive maintenance and inspection data histories, owner operators are better informed and able to plan, which reallocates capital toward prevention instead of reaction. In short, it helps companies establish a comprehensive approach to risk management, providing a more thorough oversight into the real, ongoing performance of their assets. This leads to: