In a world of aging assets and limited financial and human resources, companies often struggle to decide which asset-related projects should get attention first. Managers are required to compare highly divergent project justifications, and must somehow decide which projects bring most value to the company. Even within one project, it might be difficult to select the right option: is it better to change an asset's maintenance regime, plan a major refurbishment, or replace it altogether? The PAS-55 specification and the new ISO 55000 standard clarify the principles, but do not help with selecting or applying a methodology. This paper explores how combining asset failure risk evaluations with a well-defined corporate value function can lead to optimal decision making, and how the resulting decisions should be tracked and adjusted over the lifetime of the underlying projects or programs to maximize the execution rate.

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