Aviation Business Risk Management Principles

Sofema Online www.sofemaonline.com (SOL) considers the fundamental aspects of Aviation Business Risk Management.

Introduction

EASA is increasingly focusing on the introduction of Performance (Risk) Based Regulation (PBR) as a complement to a Prescriptive (Compliance Based) Regulation. With the goal of ensuring the best allocation of resources to both understand the risk facing the business together with the development of appropriate mitigations.

Risk Management should be considered a top-down process aimed at both understanding the scope of risks that the company faces and developing appropriate mitigations.

Risk management is essential to the ongoing well-being of the organisation and needs to be integrated into the basic operations of the organisation at all levels.

Consider the primary areas of Business Risk and we will be looking at many of the following:

       »  The cost of funding the business as an ongoing concern
       »  Compliance will all manner of financial regulations
       »  Information Security
       »  Cyber Security
       »  Internal Communication & Process Management
       »  Effective Reporting within the business and with partners
       »  New Projects
       »  Changes to the Business Operation

Within the organisation, all key team members should understand their role to identify and proposing mitigations. Both roles & responsibilities should be identified, documented and clearly understood.

Risk Reality Check!

Risks are subjective means they are not actually tangible (real) they are an interpretation of what can happen at some point in the future (before it does) and to develop “mitigations” (safeguards) to protect against such eventualities.

Our understanding and assumptions regarding risks are fluid and need to be constantly reviewed to enable the best opportunity for the most successful approach.

Building a Risk Culture

An Organisation becomes more connected when the risk management process develops into a culture of behaviour within the organisation.

The objective of developing a "culture of risk awareness" is to embrace a willingness to ensure that risks are considered in an effective way and both mitigations & opportunities are explored.

Best Practice to Address Risks

       »  Focus on early identification of risks. Being able to identify the perceived cause of any potential risk, provides us with an opportunity to measure the exposure and were necessary to develop appropriate mitigation.
       »  Develop an organizational-wide culture of risk awareness, how risks are communicated and managed within the business. (both internally and externally)
       »  Ensure Risk Management is integrated into the organisations business practices, moreover, the risk strategy should be fully aligned with the overall goals of the organisation
       »  Ensure the appropriate level of competence for all key stakeholders in the risk analysis and mitigation development decision-making process.

Develop a Risk Review Cycle

It is important to ensure that any potential exposure within the business has an opportunity to be identified during periodic and systematic review processes. Moreover, such behaviour creates an environment for continuous improvement.

Ensure there is effective reporting regarding risks with clear “two-way” communication to all stakeholders.

Next Steps

Sofema offers EASA Compliant Organizational Development through Risk-Based Auditing & Measurement of Effectiveness as a 2 Days training program available as a classroom, either in-company or open or as a web-based instructor-led training course. 

Please see www.sassofia.com or email team@sassofia.com

To view course details check here - https://sassofia.com/course/easa-compliant-organizational-development-through-risk-based-auditing-measurement-of-effectiveness-2-days/