ASTM E2811-17
(Practice)Standard Practice for Management of Low Risk Property (LRP)
Standard Practice for Management of Low Risk Property (LRP)
SIGNIFICANCE AND USE
4.1 LRP should be administratively controlled and managed using less resource-intensive methods than higher risk property.
4.2 The type and scope of control and management should be commensurate with the level of risk. The entity shall determine the level of risk considering the following criteria:
4.2.1 Scarcity,
4.2.2 Technological obsolescence,
4.2.3 Lead time,
4.2.4 Standardization,
4.2.5 Criticality,
4.2.6 Sensitivity,
4.2.7 Threshold/monetary values,
4.2.8 Environmentally regulated,
4.2.9 National security/threat,
4.2.10 Schedule constraints,
4.2.11 Vulnerability,
4.2.12 Societal or personal safety,
4.2.13 Documented business agreements (for example, contract, grant, memorandum of agreement), and
4.2.14 Initial accounting treatment.
Note 1: The listing in 4.2.1 – 4.2.14 is not all inclusive and may be supplemented by the entity and country. The management threshold/monetary value for item 4.2.7 in the United States and internationally may fluctuate up to $5000.00 or higher depending on agency and industry type.
4.3 The information received from conducting standard asset Life Cycle Processes (LCP) within each Life Cycle Stage (LCS) for LRP may not provide sufficient value to the entity that is equal to or greater than the cost associated with performing the processes.
4.4 Entities should establish policies and procedures, based on certain criteria in determining whether all or selected asset LCP should be conducted for LRP.
4.5 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.
4.6 While a variety of different strategies can mitigate or eliminate risk, the process for identifying risk includes:
4.6.1 Vulnera...
SCOPE
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.
1.4 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.
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This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the
Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.
Designation: E2811 − 17
Standard Practice for
1
Management of Low Risk Property (LRP)
This standard is issued under the fixed designation E2811; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1. Scope 3.1.1 life cycle processes (LCP)—the various management
and control processes of property from its acquisition through
1.1 This practice covers the assessment of risk and manage-
disposition as described under the three Life Cycle Stages
ment of low risk property (LRP).
defined in Practice E2453.
1.2 This practice is directed at tangible LRP.
3.1.2 low risk property (LRP)—assets that are monitored
1.3 This practice does not promote mismanagement or
and controlled at the discretion of asset managers and typically
dereliction of duty to protect property, nor protecting property
consist of low risk expendables or durable equipment and
unreasonably – to the extent that usefulness is impaired. This
tooling based on established and disclosed criteria. (Refer to
practice recognizes the constraints of materiality and costs
4.2 for more information.)
versus benefits in the control and management of property.
1.4 This international standard was developed in accor-
4. Significance and Use
dance with internationally recognized principles on standard-
4.1 LRPshould be administratively controlled and managed
ization established in the Decision on Principles for the
using less resource-intensive methods than higher risk prop-
Development of International Standards, Guides and Recom-
erty.
mendations issued by the World Trade Organization Technical
Barriers to Trade (TBT) Committee. 4.2 The type and scope of control and management should
be commensurate with the level of risk. The entity shall
2. Referenced Documents
determine the level of risk considering the following criteria:
2
2.1 ASTM Standards: 4.2.1 Scarcity,
E2131 Practice for Addressing and Reporting Losses of
4.2.2 Technological obsolescence,
Tangible Property
4.2.3 Lead time,
E2132 Practice for Inventory Verification: Electronic and
4.2.4 Standardization,
Physical Inventory of Assets
4.2.5 Criticality,
E2135 Terminology for Property and Asset Management
4.2.6 Sensitivity,
E2453 Practice for Determining the Life-Cycle Cost of
4.2.7 Threshold/monetary values,
Ownership of Personal Property
4.2.8 Environmentally regulated,
E2604 Practice for Data Characteristics of Equipment Asset
4.2.9 National security/threat,
Record
E2608 Practice for Equipment Control Matrix (ECM) 4.2.10 Schedule constraints,
E2279 Practice for Establishing the Guiding Principles of
4.2.11 Vulnerability,
Property Asset Management
4.2.12 Societal or personal safety,
4.2.13 Documented business agreements (for example,
3. Terminology
contract, grant, memorandum of agreement), and
3.1 Definitions:
4.2.14 Initial accounting treatment.
NOTE 1—The listing in 4.2.1 – 4.2.14 is not all inclusive and may be
1
This practice is under the jurisdiction of ASTM Committee E53 on Asset supplemented by the entity and country. The management threshold/
Management and is the direct responsibility of Subcommittee E53.01 on Process
monetary value for item 4.2.7 in the United States and internationally may
Management.
fluctuate up to $5000.00 or higher depending on agency and industry type.
Current edition approved Nov. 1, 2017. Published November 2017. Originally
4.3 The information received from conducting standard
approved in 2011. Last previous edition approved in 2011 as E2811-11. DOI:
10.1520/E2811-17.
asset Life Cycle Processes (LCP) within each Life Cycle Stage
2
For referenced ASTM standards, visit the ASTM website, www.astm.org, or
(LCS) for LRP may not provide sufficient value to the entity
contact ASTM Customer Service at service@astm.org. For Annual Book of ASTM
that is equal to or greater than the cost associated with
Standards volume information, refer to the standard’s Document Summary page on
the ASTM website. performing the processes.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
1
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E2811 − 17
4.4 Entities should establish policies and procedures, based 4.7.2 Prioritization of the risk management based on impor-
on certain criteria in determining whether all or selected asset tance.
LCP should be conducted for LRP.
5. Procedure
4.5 The success of any entity is dependent in part on its
5.1 Entities adopting this practic
...
This document is not an ASTM standard and is intended only to provide the user of an ASTM standard an indication of what changes have been made to the previous version. Because
it may not be technically possible to adequately depict all changes accurately, ASTM recommends that users consult prior editions as appropriate. In all cases only the current version
of the standard as published by ASTM is to be considered the official document.
Designation: E2811 − 11 E2811 − 17
Standard Practice for
1
Management of Low Risk Property (LRP)
This standard is issued under the fixed designation E2811; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1. Scope
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.
1.4 This international standard was developed in accordance with internationally recognized principles on standardization
established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued
by the World Trade Organization Technical Barriers to Trade (TBT) Committee.
2. Referenced Documents
2
2.1 ASTM Standards:
E2131 Practice for Addressing and Reporting Losses of Tangible Property
E2132 Practice for Inventory Verification: Electronic and Physical Inventory of Assets
E2135 Terminology for Property and Asset Management
E2453 Practice for Determining the Life-Cycle Cost of Ownership of Personal Property
E2604 Practice for Data Characteristics of Equipment Asset Record
E2608 Practice for Equipment Control Matrix (ECM)
E2279 Practice for Establishing the Guiding Principles of Property Asset Management
3
2.2 Other Documents:
NPMA Fundamentals of Personal Property Management, First Edition 2006
3. Terminology
3.1 Definitions:
3.1.1 identification/control numbers—markings (barcode, plate, engraving, etc.) affixed to the asset.
3.1.1 life cycle processes (LCP)—the various management and control stagesprocesses of property from its acquisition through
disposition; these processes include but are not limited to acquisition, receiving, identification,disposition as described under the
three Life Cycle Stages defined in Practice E2453records, movement, maintenance, storage, physical inventory, loss, damage, and
destruction reporting and disposition.
3.1.2 low risk property (LRP)—assets that are monitored and controlled at the discretion of asset managers and typically consist
of low risk expendables or durable equipment and tooling based on established and disclosed criteria. (Refer to 4.2 for more
information.)
3.1.4 tooling—devices that are used in performing or facilitating mechanical operations, including assisting or aiding in the
manufacture or repair of an item.
4. Significance and Use
4.1 LRP should be administratively controlled and managed to a lesser degree or with a more efficient technique using less
resource-intensive methods than higher risk property.
1
This practice is under the jurisdiction of ASTM Committee E53 on Asset Management and is the direct responsibility of Subcommittee E53.01 on Process Management.
Current edition approved March 1, 2011Nov. 1, 2017. Published March 2011November 2017. Originally approved in 2011. Last previous edition approved in 2011 as
E2811-11. DOI: 10.1520/E2811-11.10.1520/E2811-17.
2
For referenced ASTM standards, visit the ASTM website, www.astm.org, or contact ASTM Customer Service at service@astm.org. For Annual Book of ASTM Standards
volume information, refer to the standard’sstandard’s Document Summary page on the ASTM website.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
1
---------------------- Page: 1 ----------------------
E2811 − 17
4.2 The type and scope of control and management should be commensurate with the level of risk. The entity shall determine
the level of risk usingconsidering the following criteria:
4.2.1 Scarcity,
4.2.2 Technological obsolescence,
4.2.3 Lead time,
4.2.4 Standardization,
4.2.5 Criticality,
4.2.6 Sensitivity,
4.2.7 Dollar value,Threshold/monetary values,
4.2.8 Environmentally regulated,
4.2.9 National security/threat,
4.2.10 Schedule constraints,
4.2.11 Vulnerability,
4.2.12 Societal or personal safety, and
4.2.13 Documented business agreements (for example, contract, grant, memorandum of agreement), and
4.2.14 Contractual agreements.Initial accounting treatment.
NOTE 1—The listing in 4.2.1
...
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