Transcript DCC Brief NZDF Risk Management Gap Analysis

OHSI Presentation on Risk
Profile
Kimberley Turner
Chief Executive Officer
Aerosafe Risk Management
Slide 1
EXHIBIT/P-00058
Overview of Presentation Structure
• Introductions
• Risk management
• Industry Risk Profile
– Methodology
– Output & use of an IRP
• Additional discussion topics
• OSHI use of risk management concepts
Slide 2
Part 1: Introductions
Slide 3
Introductions
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Slide 4
Aerosafe Risk Management
CEO, Kimberley Turner
Risk management process
Why the OHSI have adopted this approach
Risk management & the inquiry process
Risk Maker, Risk Taker DVD
Part 2: Risk Management
Slide 5
What is Risk?
Risk is the chance of something
happening that will impact upon
“objectives”
ISO 31000 Risk Management
Slide 6
What is Safety Risk?
Risk is the chance of “a safety”
something happening that will impact
upon objectives.
ISO 31000 Risk Management
Slide 7
What is Safety Risk?
Risk is the chance of something
happening that will impact upon
“a safety” objective.
ISO 31000 Risk Management
Slide 8
What is Risk Management?
“The culture, processes and structures that
are directed towards the realization of
potential opportunities and the effective
management of adverse effects”
ISO 31000 Risk Management
Slide 9
Slide 10
Governance & Oversight for
Integrating Helicopter
Transportation Safety
Slide 11
Part 3: Risk Profiling
Slide 22
Industry Risk Profile (IRP)
An IRP presents a strategic risk picture of
those issues that may induce risk at the
systemic or structural level of a particular
industry sector at a given point in time.
Slide 23
Industry Risk Profile
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Slide 24
Define the industry
Establishes the context
Clarify the core objective
Recognize that the profile changes
Draw boundaries for the assessment
Influences on data sources
Depth of analysis
What is Risk?
Risk is the chance of something
happening that will impact upon
“objectives”
ISO 31000 Risk Management
Slide 25
Industry Risk Profile
Methodology
Slide 33
IRP Methodology
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Slide 35
ISO31000 risk management process
Structure provided by IRP model
Driven on information accumulated
Available documents reviewed
Industry stakeholders identified
Over 12 risk identification techniques used (layer)
Many pieces of risk data extracted from these
sources initial assessment
Summation of Results
• Risks presented by Risk Ranking
– Highest to lowest
– A number of risks have same rating or level
• Risk presented against matrix
– Scatter plot of risk (consequence & likelihood)
– Before & after results
• Risks presented against IRP Model
– Used to develop road map to risk reduction
– Allocating accountability for action
Slide 36
Example Risk Matrix
Result Presentation
Example Risk Matrix
Result Presentation
Summation of Results
• Risks presented by Risk Ranking
– Highest to lowest
– A number of risks have same rating or level
• Risk presented against matrix
– Scatter plot of risk (consequence & likelihood)
– Before & after results
• Risks presented against IRP Model
– Used to develop road map to risk reduction
– Allocating accountability for action
Slide 39
Output & Use of an IRP
• At the Commissioner’s request an IRP will
be developed concurrently with the inquiry
process
• IRP development will be in collaboration
with stakeholders to extract key issues
and suggested solutions for enhancement
• IRP content will be presented for
consideration by the Commissioner and
used in his deliberations
Slide 41
Part 4: Additional discussion topics
•Governance
•Risk Management
•Safety Management Systems
•Contract Management
Slide 42
Governance
Creating an accountability framework
for risk reduction through good
governance
Slide 43
Defining Corporate Governance
“The systems by which organizations are
directed and controlled”
Slide 44
Compliance
Slide 45
Compliance
Assurance
Slide 46
Risk
Management
Compliance
Assurance
Slide 47
Compliance
Risk
Management
Governance
Assurance
Slide 48
Risk Management
Integrating Safety & Governance
through risk management
Slide 49
Slide 50
Slide 51
Slide 52
SMS
Aviation
Safety Management Systems (SMS)
Slide 53
Defining SMS…….
A safety management system (SMS) is an
organized approach to managing safety,
including the
• Necessary organizational structures
• Accountabilities
• Policies and
• Procedures
International Civil Aviation Organization
Slide 54
Defining SMS…….
The purpose of a safety management
system is to provide a systematic way to
control risk and to provide assurance that
those risk controls are effective
FAA
(USA Regulator)
Slide 55
Defining SMS…….
“A safety management system is a
business-like approach to safety. It is a
systematic, explicit and comprehensive
process for managing safety risks”
CASA
(Australian Regulator)
Slide 56
Defining SMS…….
A documented process for managing risks
that integrates operations and technical
systems with the management of financial
and human resources to ensure aviation
safety or the safety of the public.
Transport Canada
Slide 57
What does an SMS look like?
• Most of the regulations around the world are
promulgating principle based SMS
• There are suggested activities which demonstrate
the effective running of an SMS
• Difficulties in grasping the difference between the
“system” and the “doing”
• The most visible aspects are the application of
processes (risk management)
Slide 60
Component of an SMS
Contract Management
Focusing on the Safety & Risk
Management component
Slide 62
Contractor Safety Management
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Setting standards
Measuring achievement
Provision of confidence or “assurance”
Corporate responsibility for:
– Aircraft capability definition
– Aircraft selection
– Oversight of system implementation
• Measuring effectiveness
Slide 63
Part 5:
OHSI use of Risk Management
Concepts
Slide 64
OSHI Adopts Risk Based Approach
• Recognition that aviation industry is
complex and not free of risk
• Recognition that the swiss cheese model
has merit in respect to accident prevention
• Relationship of broader systemic issues
• Recognized process for identification,
assessment and reduction of risk
• Ultimate aim is to provide assurance so
that confidence can be regained
Slide 65
OSHI Adopts Risk Based Approach
Phase OHSI
Risk Profile
Prep
Preparation
Establishing Context
1A
Public Hearing
Issues identification and data
collection
1B
Investigative Phase
Development of IRP in
consultation with industry
1C
Response to Investigative
phase
Consultation and confirmation of
agreed risk treatments measures
OHSI findings and
recommendations
Submission of the draft IRP to
the Commissioner as requested
2
Evaluation of draft IRP against
TSB investigation report
Slide 66
Response to TSB
Investigation
Question & Answer
Session
Slide 67