Which statement best describes the governance requirement for an asset management program?

• A. It should be approved by senior management and communicated to all appropriate personnel
• B. It can be informal and uncommunicated
• C. It applies only to hardware
• D. It is optional and periodically reviewed

Answer: (A)

A governance approach to an asset management program starts with formal endorsement from senior management and clear communication to those responsible for implementing and using assets. This official backing provides legitimacy, resources, and the authority needed to enforce policies and standards. Communicating the program to appropriate personnel ensures everyone knows their roles, responsibilities, and the practices to follow, which drives consistent asset tracking, risk management, and compliance.

Without senior‑level approval and broad communication, the program lacks authority and visibility, making it hard to enforce controls or achieve alignment with business objectives. Treating asset management as informal or optional, or limiting it to just hardware, leaves gaps in software, data, and other asset types, and misses ongoing oversight.