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

• 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

Slide 4
 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
• 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

Slide 24
 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
• 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

Slide 35
 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
Compliance
Management

Assurance

Slide 47
 Risk
Compliance 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
• 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 Consultation and confirmation of
phase agreed risk treatments measures
OHSI findings and Submission of the draft IRP to
recommendations the Commissioner as requested
2 Response to TSB Evaluation of draft IRP against
Investigation TSB investigation report

Slide 66
 Question & Answer
Session

Slide 67