Aviation Risk and Safety Management: Methods and Applications in Aviation Organizations (Management for Professionals)

The International Civil Aviation Organization’s (ICAO) decision to require aviation organizations to adopt Safety Management Systems poses a major problem especially for small and medium sized aviation companies. The complexity of regulations overstrains the aviation stakeholders who seek to fully advantage from them but have no clear guidance. The aim of the book is to show the implementation of such a new system with pragmatic effort in order to gain a gradation for smaller operators. This approach should illustrate the leeway in order to adapt the processes and to show the interfaces between Corporate Risk Management and Safety Management. The book shows how to build a system with reasonable effort, appropriate to the size and complexity of the specific operator. It also gives inputs on the key aspects and how to effectively operate such a system with the various interfaces. Furthermore, the book highlights the importance of Corporate Risk Management independent of Safety Management Systems based on ICAO. Front Matter....Pages i-xiii Management Summary....Pages 1-4 Front Matter....Pages 5-5 Essential Basics and Limitations of Safety and Risk Management....Pages 7-17 Front Matter....Pages 19-19 Necessity and Development of Risk Management....Pages 21-37 Internal Control System (ICS)....Pages 39-43 Fundamentals and Structure of Safety Management Systems in Aviation....Pages 45-55 Costs and Benefits of Risk Management....Pages 57-71 Operational Risk Management as an Integrated Part of Safety Management Systems....Pages 73-76 Management Implications....Pages 77-82 Front Matter....Pages 83-83 Study of the Level of Risk and Safety Management System Implementation in Practice....Pages 85-93 Risk Management in Air Traffic Control “Operator’s Risk – Back to Basics”....Pages 95-114 Importance of Fatigue Risk Management....Pages 115-138 Aircraft Accident Investigations....Pages 139-148 Front Matter....Pages 149-149 General Remarks and Overview....Pages 151-151 Organizational Challenges and Phases of Implementation and Optimization....Pages 153-213 2.5.4 Aircraft Development and Testing Activities2.5.5 Actuarial Calculation of Risks for Insurances; References; Part II: Theoretical Background of Risk and Safety Management; 3: Necessity and Development of Risk Management; 3.1 Importance of Risk Management; 3.2 Regulation of Risk Management; 3.2.1 Regulation in Air Law; 3.2.1.1 Overview International Regulations; 3.2.1.2 Overview National Regulations; 3.2.1.3 International; 3.2.1.4 National; 3.2.2 Swiss Code of Obligations; 3.2.3 Bank Regulations; 3.2.4 German Law for Control and Transparency (KonTraG); 3.2.5 Institutional Investors 3.2.6 Impact of US Developments3.2.7 Press; 3.3 Milestones in Risk Management History; 3.3.1 New Concepts; 3.3.2 Credit Risk Management; 3.3.3 Financial Risk Management; 3.3.4 Operational Risk Management; 3.3.5 Corporate Risk Management; 3.3.6 Compliance Management; 3.4 General Risk Management Models; 3.4.1 COSO Enterprise Risk Management-Integrated Framework; 3.4.2 ISO 31000:2009 Risk Management-Principles and Guidelines; 3.4.3 ISO 22301 Business Continuity Management; References; 4: Internal Control System (ICS); 4.1 Concept and Objectives of the Internal Control System (ICS) 4.1.1 Components of an ICS4.1.2 ICS Tasks and Responsibilities; 4.1.3 Minimum Requirements for an ICS; Reference; 5: Fundamentals and Structure of Safety Management Systems in Aviation; 5.1 Development of Safety and Accidents; 5.2 The Organizational Accident Causation; 5.3 Regulation of Safety Management Systems; 5.3.1 ICAO Regulations; 5.3.2 EASA Regulations; 5.3.3 CAA; 5.4 Importance and Objectives of a Safety Management System; 5.4.1 Pillar One: Policy; 5.4.2 Pillar Two: Risk Management; 5.4.3 Pillar Three: Safety Assurance; 5.4.4 Pillar Four: Safety Promotion; References 6: Costs and Benefits of Risk Management6.1 Introduction; 6.2 Sources of Microeconomic Risks; 6.2.1 Business Risk (Operating Risk); 6.2.2 Strategic Risk; 6.2.3 Financial Risk; 6.2.4 Structural Risk; 6.2.5 Risk of Change; 6.2.6 Systemic Risk; 6.3 Cost Factors of Corporate Risk Management; 6.3.1 Internal; 6.3.2 External; 6.4 Risk Management Costs; 6.5 Summary; Appendix: Sample Risk Manager Job Description; Sample Company; Risk Manager Job Description; References; 7: Operational Risk Management as an Integrated Part of Safety Management Systems; 7.1 Hazard Identification Preface; Abbreviations; Contents; List of Figures; List of Tables; 1: Management Summary; Part I: Introduction; 2: Essential Basics and Limitations of Safety and Risk Management; 2.1 Background; 2.2 Objective of the Book; 2.3 Methodology; 2.4 Definitions; 2.4.1 Hazard; 2.4.2 Safety Risk; 2.4.3 Risk Management; 2.4.4 Operational Risk Management; 2.4.5 Risk Appetite; 2.4.6 Risk Mitigation; 2.4.7 Safety; 2.4.8 Safety Management System; 2.4.9 Safety Culture; 2.5 Limitations; 2.5.1 Quality Management; 2.5.2 Emergency Response Planning; 2.5.3 Corporate Risk Management