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7) commitment to a safety oversight process which is independent of line management;
8) a system of documentation of those business policies, principles, procedures and practices with
safety implications;
9) regular review of safety improvement plans; and
10) formal safety review processes.
b) Effective organizational tools to deliver safety standards — For example, this includes the
following:
1) risk-based resource allocation;
2) effective selection, recruitment, development and training of personnel;
3) implementation of SOPs developed in cooperation with affected personnel;
4) corporate definition of specific competencies (and safety training requirements) for all personnel
with duties relating to safety performance;
5) defined standards for, and auditing of, asset purchases and contracted services;
5-APP 1-2 Safety Management Manual (SMM)
6) controls for the early detection of, and action on, any deterioration in the performance of safetysignificant
equipment, systems or services;
7) controls for monitoring and recording the overall safety standards of the organization;
8) the application of appropriate hazard identification, risk assessment and effective management
of resources to control identified risks;
9) provision for the management of major changes in such areas as the introduction of new
equipment, procedures or types of operation, turnover of key personnel, mass layoffs or rapid
expansion, mergers and acquisitions;
10) arrangements enabling staff to communicate significant safety concerns to the appropriate level
of management for resolution and feedback on actions taken;
11) emergency response planning and simulated exercises to test the plan’s effectiveness; and
12) assessment of commercial policies with regard to their impact on safety.
c) A formal system for safety oversight — This includes such elements as:
1) a system for analysing flight recorder data for the purpose of monitoring flight operations and for
detecting unreported safety events;
2) an organization-wide system for the capture of reports on safety events or unsafe conditions;
3) a planned and comprehensive safety audit system which has the flexibility to focus on specific
safety concerns as they arise;
4) a system for the conduct of internal safety investigations, the implementation of remedial actions
and the dissemination of safety information to all affected personnel;
5) systems for the effective use of safety data for performance analysis and for monitoring
organizational change as part of the risk management process;
6) systematic review and assimilation of best safety practices from other operations;
7) periodic review of the continued effectiveness of the SMS by an independent body;
8) monitoring by line managers of work in progress in all safety-critical activities to confirm
compliance with all regulatory requirements, company standards and procedures, with particular
attention given to local practices;
9) a comprehensive system for documenting all applicable aviation safety regulations, corporate
policies, safety goals, standards, SOPs, safety reports, etc. and for making such documentation
readily available to all affected personnel; and
10) arrangements for ongoing safety promotion based on measured internal safety performance.
2. It is important that the scope of the SMS be appropriate to the size and complexity of the operation.
Large operations will require a more complex SMS, while smaller operations with less complex structures
should be well served by a more basic SMS.
___________________
6-1
Chapter 6
RISK MANAGEMENT
Risk management serves to focus safety efforts on those
hazards posing the greatest risks.
6.1 GENERAL
6.1.1 The aviation industry faces a diversity of risks every day, many capable of compromising the
viability of an operator, and some even posing a threat to the industry. Indeed, risk is a by-product of doing
business. Not all risks can be eliminated, nor are all conceivable risk mitigation measures economically
feasible. The risks and costs inherent in aviation necessitate a rational process for decision-making. Daily,
decisions are made in real time, weighing the probability and severity of any adverse consequences implied
by the risk against the expected gain of taking the risk. This process is known as “risk management”. For the
purposes of this manual, risk management can be defined as follows:
• Risk management. The identification, analysis and elimination (and/or mitigation to an acceptable
or tolerable level) of those hazards, as well as the subsequent risks, that threaten the viability of an
organization.
6.1.2 In other words, risk management facilitates the balancing act between assessed risks and viable
　
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