What are the best practices for assessing risk in an airline's SMS program?

1 Define your risk matrix

A risk matrix is a tool that helps you evaluate the severity and likelihood of each hazard and assign a risk level based on a predefined scale. A risk matrix should reflect your airline's safety policy, objectives, and risk appetite, as well as the regulatory requirements and expectations. You should also review and update your risk matrix periodically to account for changes in your operations, environment, and data.

2 Use multiple sources of data

Data is essential for identifying and analyzing hazards and risks. You should collect and use data from various sources, such as safety reports, audits, inspections, incidents, accidents, feedback, surveys, benchmarks, and industry trends. You should also ensure that your data is accurate, reliable, and timely, and that you have a system for storing, processing, and sharing it across your organization.

3 Apply a systematic and structured approach

Risk assessment is not a one-time or ad hoc activity. It should be part of a continuous and proactive process that follows a clear and consistent methodology. You should use a risk assessment framework that defines the steps, roles, responsibilities, and criteria for each stage of the process, such as hazard identification, risk analysis, risk evaluation, and risk treatment. You should also document and communicate your risk assessment results and actions, and monitor and review them regularly.

4 Involve relevant stakeholders

Risk assessment is not a solo or isolated task. It should involve the participation and input of relevant stakeholders, such as managers, employees, customers, suppliers, regulators, and industry partners. You should consult and collaborate with stakeholders to gather information, perspectives, and feedback, and to ensure buy-in and support for your risk assessment process and outcomes. You should also provide training and guidance to stakeholders on how to conduct and contribute to risk assessment.

5 Learn from best practices and benchmarks

Risk assessment is not a static or fixed practice. It should be informed by best practices and benchmarks from within and outside your industry. You should research and compare your risk assessment process and performance with those of other airlines, organizations, and sectors, and identify gaps, strengths, and opportunities for improvement. You should also adopt and adapt proven tools, techniques, and standards for risk assessment, such as the ICAO Safety Management Manual or the ISO 31000 Risk Management Principles and Guidelines.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?