Transcript Document 7209393

Safety Management Systems
Safety Risk Management
“New Tools & Processes”
CAPTAIN BILL YANTISS
AVIATION SAFETY CONSULTANT
TASS 2009
NOVEMBER 9, 2009
MSTF/46
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9 November 2009
Discussion Topics
 Overview of Safety Management
 ICAO & IATA
 Enterprise perspective
 Integration
 Safety Risk Management
 Hazard Identification
 Risk Assessment
 Risk Mitigation
 Organize for success
 Relationship between Safety, Quality, & Security
 Silos versus integration—what’s the value?
 Keys to Success
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The Aviation Landscape
ICAO – IATA Partnership
STATES
AIRLINES
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A Comparison - SSP vs. SMS
 State Safety Program
 Safety Management System
 Responsibility of CAA
 Responsibility of operator
 Transition from compliance to
performance-based oversight
 Brings independent safety & quality
programs into alignment
 4 components and 11 elements
 4 components and 12 elements
 State must approve the operator’s
SMS
 ICAO acknowledges other
management systems and endorses
integration
 In general, States are unsure how
to recognize and approve an
SMS—training in progress
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 ISO 9001:2008 standard
acknowledges an organization’s
management system includes
component management systems
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Enterprise and Operational Risk Management
Two Independent but Related Systems
BOARD OF DIRECTORS
Enterprise
Risk
Operational
Risk
Audit Committee
CEO
DIR FINANCE
DIR LEGAL
DIR HR
DIR SECURITY
DIR IT
DIR OPERATIONS
DIR RISK MGMT
Terminal
Airside
Cargo
Systems/Organiza
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Risk Management—Two Levels
 Operational Risk Management
 A primary concern of State Civil Aviation Authority
 Majority of employees deal with operational risk
 SMS, SeMS, QMS, & EMS are vehicles to identify,
analyze, and resolve operational issues
 Enterprise Risk Management
 Operational
 Strategic
 Financial
 Compliance
 Environmental
 Corporate Governance / ethics
 Project
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Usually does not
involve State Civil
Aviation Authority
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Enterprise Risk Management – A Deeper Look
Risk Category
Examples
 Strategic
 Financial
 Operational
 Compliance
 Environmental
 Corporate Citizen
 Project
Market dynamics, resources
Capital structure, liquidity
Assets, people, technology
Legal, regulatory
Petroleum, HAZMAT
Reputation, good will
Success or failure
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Operational Risk Management
Who are the Players?
 Safety, Quality, Security, & Environmental Teams
 Collect and analyze data, consult, assess risk, interface with
regulatory agencies
 Develop dashboards to communicate key levels of risk exposure
 Senior Leadership Team (Operations)
 Cascade risk management techniques throughout the operation
 Develop and implement interventions to manage risk (Four
Options: Accept, Share, Mitigate, Transfer)
 Manage continuous improvement process
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ICAO SMS Framework
 Safety Policy and
Objectives
 1.1 Mgt Commitment
 1.2 Safety Accountabilities
 1.3 Appointment of safety
personnel
 1.4 Coordination of ERP
 1.5 SMS Documentation
 Safety Assurance
 3.1 Safety Performance
Monitoring & Measurement
 3.2 Management of Change
 3.3 Continuous Improvement
 Safety Promotion
 4.1 Training & Education
 4.2 Safety Communication
 Safety Risk Management
 2.1 Hazard Identification
 2.2 Assessment &
Mitigation
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9 November 2009
Discussion Topics
 Overview of Safety Management
 ICAO & IATA
 Enterprise perspective
 Integration
 Safety Risk Management
 Hazard Identification
 Risk Assessment
 Risk Mitigation
 Organize for success
 Relationship between Safety, Quality, & Security
 Silos versus integration—what’s the value?
 Keys to Success
TASS 2009
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9 November 2009
Hazard Identification
Operations
Implement Plan
& Re-evaluate
Auditing
People Reports
Data
Internal
Flight / Maintenance
Dispatch / Cabin
Ground Handling / Security
Field Investigations
FODA
Departmental QC
Independent QA
External
Civil Aviation
Environment
Security
OSH
IOSA
Safety Committee
(Dashboard)
Everyone sees safety status
Management
Regulators
Employees / Unions
Input into Enterprise Risk Model
Ops Analysis
Safety Statistics
Recommend
Action Plan
Source: Krakowski & Yantiss
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Hazard Identification—Two Locations
Existing Hazards – Sand traps
that Exist in Today’s Operation
Predicted Hazards – Induced with
New Operational Changes
 How Do We Identify Them?  How Do We Identify Them?
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People reports
On-site audits
Flight data analysis
Regulator feedback
 Safety Risk Management Panel
 Business Process Engineering
Team
 Joint Quality Review Team
(operator & regulator)
 Continuous Improvement Team
(Six Sigma tool kit)
 Each process is a
continuous loop
 Hazard Identification &
mitigation
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Note: Concepts are described in IATA SMS
Implementation Guide – Published Fall 2009
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Example SRM Process
Source: FAA Air Traffic Organization
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Risk Assessment
Existing Hazards
Predicted Hazards
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Risk Mitigation (RM)
 Management must approve, fund, and implement RM strategies
 Risk Mitigation Options
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Control (engineering or administrative)
Transfer
Avoid
Assume or accept
 Value of Documentation
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Establishes accountability & supports informed decisions
Record of risk assessment & proposed mitigation
Process gains signatures of process owner & major stakeholders
Signatures represent acceptance of “predicted residual risk”
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Discussion Topics
 Overview of Safety Management
 ICAO & IATA
 Enterprise perspective
 Integration
 Safety Risk Management
 Hazard Identification
 Risk Assessment
 Risk Mitigation
 Organize for success
 Relationship between Safety, Quality, & Security
 Silos versus integration—what’s the value?
 Keys to Success
TASS 2009
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Organizational Strategy
Where Are We Today?
Management Systems
 Evolving International Safety
Standards
 Quality Management
 IOSA laid SMS foundation for
commercial operators
 IS-BAO is following the path of
IOSA for charter and corporate
operators
 ISAGO for Ground Handlers
 ISO 14000 for Environment
 ISO 9001:2008 recognizes the
organizational “management
system”
 Environmental Management
 Occupational Health
 Safety Management
 Security Management
 Financial Management
 Maintenance Management
 Supplier Management
 Airlines must satisfy requirements  10-30 Other Systems
from many regulatory authorities
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integrated-Airline Management System
Maintenance
Management System
Executive Team -Corporate Governance
Culture
Culture
Conceptual Diagram
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Courtesy of Bill Yantiss, Discussion Paper, i-AMS
An Operator’s Perspective, September 19, 2006
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An Example Organization Model
Observations:
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Airlines are consolidating departments that ensure regulatory compliance
Each MD identifies operational risks from their “unique” perspective
Each department monitors compliance with a different body of State law
Each MD uses the same risk model to ensure continuity & alignment
Integration of risk management processes enables a “holistic” risk assessment
VP Corporate
Safety, Quality,
Security, &
Environment
MD Flight Safety
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MD Ground Safety
MD QA – Flight
Operations
MD QA –
Maintenance &
Engineering
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MD Corporate
Security
MD Environmental
Safety
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Value of Integration
 Reduction in duplication of effort (cost)
 Reduction in overall organization risk (holistic assessment)
 Balanced integration of Enterprise & Operational Risk
Management
 Alignment of potentially conflicting operational objectives
 Alignment of risk management and assurance processes
 Elimination of organizational barriers (silos) to
 Teamwork
 Communication
 Community (trust & transparency)
 Diffusion of organizational power systems
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Keys to Successful SMS Implementation
 Start and end with the Accountable Executive
 Personal engagement and visible support
 Education and understanding of SMS principles
 Align the SSP and SMS
 Partner with the regulatory authority
 Open and transparent dialogue with regulatory representatives
 Align enterprise safety and quality functions into a partnership
 Safety Services department leads SRM
 Quality Services department leads Safety Assurance
 Anticipate internal friction and resistance
 Stay the course—culture change takes time
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Discussion
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