SMS Pro Aviation Safety Software Blog 4 Airlines & Airports

How Much Risk Are You Taking On?

How much risk are you will you willing to accept?

This is one of the most critical questions that every aviation service provider needs to answer. The answer will influence every single risk management activity in the operator's aviation safety management system (SMS).

What is your risk appetite? Not surprisingly, our risk appetite changes based on a variety of factors that require constant monitoring, including:

• Competition;
• Your product or service life-cycle;
• Organization's financial situation; and
• Environmental factors, like the economy.

Why Definitions of Hazard and Risk Matter

One of the most ubiquitous problems in aviation risk management is the misuse of commonly used words, in particular “hazard” and “risk.” Often, these two items are either:

• Used interchangeably; or
• Used much too broadly.

Accuracy is extremely important, as much of the bureaucracy in an aviation safety management system (SMS) builds upon basic definitions of safety elements. Misunderstanding or assuming incorrect definitions can compromise how safety is accounted for and documented in the aviation SMS.

What Is Risk in Aviation SMS Implementations

Risk in aviation safety management systems (SMS) is a tricky subject. Not only is it treated differently in different organizations, but safety professionals tend to get up in arms in front of differing opinions.

The truth is that “risk” is a terribly nebulous word and concept, with multiple ways to use it. What’s important is NOT that you “know what risk is” so much as you “define what risk means to your organization.”

Here are multiple ways that “risk” is used in the risk management industry, in descending order of common use:

• The likelihood and severity of safety mishap occurring;
• Negative safety outcomes, such as damages to equipment or aircraft, injuries, deaths, etc.; and
• Loss of safety control (i.e., “dangerous condition” or “risk event”).

What Is Operational Risk for Airline SMS

Operation risk is a primary concern of airline safety management systems (SMS). Just as in traditional safety programs, modern SMS implementations will revolve around identifying hazards and controlling these safety events.

In a formal aviation SMS implementation, there are two inter-connected components:

• Safety risk management (SRM); and
• Safety assurance (SA).

Elements of Safety Risk Management (SRM)

Safety Risk Management receives by far the most attention of any aspect of aviation safety management systems (SMS). It is, as you might say, “where the action is,” in terms of managing risk and the most focused-upon element in an aviation SMS.

Despite the fact that other aspects of aviation risk management processes provide equally valuable assistance in developing an aviation SMS, SRM deals most directly with risk exposure.

SRM is complex, as it:

• Requires as much “documenting what you are doing,” as “doing it”;
• Will be the area of your SMS program where you develop risk management tools; and
• Has many working parts needed to adequately practice SRM.

In this discussion, we'll explore the 4 important elements of Safety Risk Management (SRM).

Perform Risk Analysis to Meet Oversight Compliance Expectations

It hardly needs to be said that performing a risk analysis in aviation safety management systems (SMS) is absolutely essential. There are many opportunities in the aviation SMS' risk management processes for safety professionals and operational department heads to determine whether the potential consequences of conducting operations in the presence of hazards remains either:

What Is Safety Risk Management in Aviation SMS?

Depending on the context and your educational background, safety risk management in aviation safety management systems (SMS) can mean a couple different things:

1. Second component of ICAO's four pillars; and
2. Processes to identify, describe, monitor and manage hazards affecting safe aviation operations.

What Change Management Is in Safety Management Systems

Change management in aviation safety management systems (SMS) is an extremely important topic. Formal processes to manage change have become important not just for safety performance, but also for demonstrating to SMS auditors that your company knows how to formally manage change as your operations are exposed to changing environmental conditions.

You can bet that poorly managed or documented change management processes will result in an audit finding. The reason is that change management:

• Demonstrates your understanding of the steps in the Safety Risk Management process;
• Shows the quality of your risk analysis activities;
• Validates your ability to document required SMS activities; and
• Bridges the gap between Safety Risk Management and Safety Assurance processes.

How Do You Talk About Aviation Safety Risk Management

Aviation safety managers have jobs that others may find unrewarding, or difficult for them to witness results. The safety manager may spend years performing routine "safety manager stuff," while others may wonder: "just what do you do around here?"

What Is Predictive Risk Management?

In aviation safety management systems (SMS), risk management professionals toss around three common terms:

• reactive risk management;
• proactive risk management; and
• predictive risk management.