ASTM E2811-11
Standard Practice for Management of Low Risk Property (LRP)
- Standard No.
- ASTM E2811-11
- Release Date
- 2011
- Published By
- American Society for Testing and Materials (ASTM)
- Status
- Replace By
- ASTM E2811-17
- Latest
- ASTM E2811-17
- Scope
LRP should be administratively controlled and managed to a lesser degree or with a more efficient technique than higher risk property.
The type and scope of control and management should be commensurate with the level of risk. The entity shall determine the level of risk using the following criteria:
Scarcity,
Technological obsolescence,
Lead time,
Standardization,
Criticality,
Sensitivity,
Dollar value,
Environmentally regulated,
National security/threat,
Schedule constraints,
Vulnerability,
Societal or personal safety, and
Contractual agreements.
Note 18212;The listing in 4.2.1-4.2.13 is not all inclusive and may be supplemented by the entity.
The information received from conducting standard asset life cycle processes (LCP) for LRP may not provide sufficient value to the entity that is equal to or greater than the cost associated with performing the processes.
Entities should establish policies and procedures, based on certain criteria in determining whether all or selected asset LCP should be conducted for LRP.
The success of any entity is dependent in part on its operational effectiveness. To be effective entities should shift their focus from “risk avoidance” to one of “risk management.” The required processes and associated cost to eliminate all risk is prohibitive and contrary to producing timely, high-quality, and competitive products and services.
1.1 This practice covers the assessment of risk and management of low risk property (LRP).
1.2 This practice is directed at tangible LRP.
1.3 This practice does not promote mismanagement or dereliction of duty to protect property, nor protecting property unreasonably – to the extent that usefulness is impaired. This practice recognizes the constraints of materiality and costs versus benefits in the control and management of property.
ASTM E2811-11 Referenced Document
- ASTM E2131 Standard Practice for Addressing and Reporting Losses of Tangible Property
- ASTM E2132 Standard Practice for Inventory Verification: Electronic and Physical Inventory of Assets
- ASTM E2135 Standard Terminology for Property and Asset Management
- ASTM E2279 Standard Practice for Establishing the Guiding Principles of Property Asset Management
- ASTM E2608 Standard Practice for Equipment Control Matrix (ECM)
ASTM E2811-11 history
- 2017 ASTM E2811-17 Standard Practice for Management of Low Risk Property (LRP)
- 2011 ASTM E2811-11 Standard Practice for Management of Low Risk Property (LRP)
