The development of the sector risk profiling methodology for Australian civil aviation activity and its application to the small aeroplane transport sector

Abstract

Sector Risk Profiling (SRP) is a methodology to develop a risk picture for a sector of civil aviation activity using ISO 31000:2009 Risk Management: Principles and guidelines. By engaging with sector stakeholders to consult and review all available information on the sector to develop the risk picture, optimal risk responses for risks of significance can be collectively identified and ownership assigned for implementing responses. Although the SRP methodology is by large a qualitative approach, quantitative data analysis can be integrated into the SRP if relevant data is available. The SRP offers four advantages: (1) It is consultation driven by sector’s subject matter experts; (2) It produces a sector risk register which includes all risk attributes such as causes, current controls, future treatments, ownerships, etc.; (3) It suggests an assurance mapping process which contains a gap analysis of the sector risk register and each sector entity’s risk register; and (4) It introduces a new concept of the “living risk profile” by implementing and integrating the risk register into the sector entity’s Safety Management System (SMS) and into the authority’s safety surveillance program to responding to emerging risks. The SRP process contains three phases. Phase 1 establishes the sector context to assist data collection and analysis. An industry workshop is conducted towards the end of Phase 1. The workshop participants include sector entities (operators), safety authority and other sector stakeholders providing infrastructure and support services. The key outputs from the workshop are: a set of sector objectives, SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis to identify the hazards and associated risks for the sector. The principal task in Phase 2 is to develop a sector risk register based on the hazards and associated risks at the second workshop. During the workshop the participants engage in a critical assessment of hazards to develop risk statements, impacts from the risks, identify current risk controls and assess current risks using a risk matrix and the developed sector objectives. The information captured in the risk register include causes, impacts, existing controls, current likelihood, consequence and risk rating. When the current risk rating is outside the ALARP (As Low As Reasonably Practicable) limits, additional risk treatments are also identified with accountability assigned to owners best placed to treat the risk. The residual risk is assessed assuming treatments are in place. As part of the collaboration and engagement, the risk register is revised within the workshop participants. Phase 3 consists of sector assurance mapping, including conducting a gap analysis between the sector risk register and each operator’s risk register. This assurance mapping contributes to the authority’s sector surveillance program, including the development of Safety Performance Indicators (SPIs) specifically for the sector. Phase 3 also integrates the sector risk register into sector operator’s SMS and into the authority’s sector surveillance program, hence, forms a living risk profiling process to evaluating the current risk controls and responding to changing operational environment and emerging risks. The way forward in the ‘SRP space’ is to ‘collaborate more’ and ‘engage more’ with all stakeholders to increase understanding, promote safety improvement opportunities, and work on solutions together. This is underpinned by creating a culture that encourages open and honest communication, listening to others, showing respect and maintaining trust. The SRP methodology will be demonstrated for a sector in air transport. However, SRP methodology is not limited to aviation, it can be applied to any industry sector.