Categories of Risk to be Considered Related to Aviation Risk-Based Audits

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

 
Introduction

Risk management is a decision-making process that is designed to:

       »  Identify hazards in a controlled and systematic way
       »  Assess the degree of risk, and determine the best course of action. Key terms are:

Important Note: Absolute safety is not possible simply because complete freedom from all hazardous conditions is not possible.

Therefore, safety is a relative term that implies a level of risk that is both perceived and accepted.

 

Concerning Risk & Risk Management

        »  Risk is defined as a combination of the probability as well as possible severity of accident or loss from exposure to various hazards, including injury to people as well as the loss of resources.
       »  Risk management, a formalized way of thinking about these topics, is the logical process of weighing the potential costs of risks against the possible benefits of allowing those risks to stand uncontrolled.

 
Key Definitions

»  Hazard: a present condition, event, object, or circumstance that could lead to or contribute to an unplanned or undesired event, such as an accident.
    o   It is a source of danger. For example, loose material on an airport apron represents a hazard.

»  Risk: the future impact of a hazard that is not controlled or eliminated.
    o   It is the possibility of loss or injury.
    o   The level of risk is measured by the number of people or resources affected (exposure);
    o   The extent of possible loss (severity); and
    o   likelihood of loss (probability).

 »  Safety: The degree of freedom from those conditions that can cause any of the following :
    o   Death,
    o   Injury,
    o   Occupational illness,
    o   Damage or loss of equipment or property, or
    o   Damage to the environment.

 
Types of Risk

Total Risk: The sum of identified and unidentified risks.

Identified Risk: Risk that has been determined through various analysis techniques

       »  The first task of system safety is to identify, within practical limitations, all possible risks.

Unidentified Risk: Risk not yet identified.

       »  Some unidentified risks are subsequently identified when a mishap occurs. Some risk is never known.

Unacceptable Risk:  Risk which cannot be tolerated by the organisation or within the context of the particular activity.

       »  Unacceptable risk must be eliminated or controlled.

Acceptable Risk: The identified risk that is allowed to persist without further engineering or management action.

       »  Determining acceptable risk is sometimes a difficult yet necessary responsibility of the managing activity.
       »  The decision to accept is made with full knowledge that it is the user who is exposed to this risk.

Residual Risk: Is identified as any risk which is left over after all system safety efforts have been fully employed.

Note Concerning Residual Risk: It (residual Risk) is not necessarily the same as an acceptable risk. Residual risk can be considered as the sum of acceptable risk and unidentified risk.

Residual Risk is the total risk passed on to the user.

Principles of Risk Management

The goal of risk management is to proactively identify safety-related hazards and mitigate the associated risks.

      »  Risk management is an important component of decision-making.
      »  The ability to make good decisions is based upon direct or indirect experience and education.

 Consider the four fundamental principles of risk management:

»  Accept No Unnecessary Risk
    o   Unnecessary risk is that which carries no commensurate return in terms of benefits or opportunities.

»  Make Risk Decisions at the Appropriate Level
    o   Anyone can make a risk decision. However, risk decisions should be made by the person who can develop and implement risk controls.

»  Accept Risk When Benefits Outweigh the Costs
    o    All identified benefits should be compared against all identified costs. Even high-risk endeavours may be undertaken when there is clear knowledge that the sum of the benefits exceeds the sum of the costs.

»  Integrate Risk Management into Planning at All Levels
    o   Risks are more easily assessed and managed in the early stages of a project.
    o   Changes made later in the process of planning and executing may become more difficult, time-consuming, and expensive.

Note: A safety enhancement can occur at any time that appropriate and effective risk management take place.

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/