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risk. Regrettably, such solutions are often the most expensive. At the other end of the spectrum, when there
is insufficient organizational will or resources, the problem is often deferred to the training department to
teach staff to cope with the risks. In such cases, management may be avoiding hard decisions by delegating
responsibility for the risk to subordinates.
6.5 RISK COMMUNICATION
6.5.1 Risk communication includes any exchange of information about risks, i.e. any public or private
communication that informs others about the existence, nature, form, severity or acceptability of risks. The
information needs of the following groups may require special attention:
Chapter 6. Risk Management 6-11
a) Management must be apprised of all risks that present loss potential to the organization.
b) Those exposed to the identified risks must be apprised of their severity and likelihood of occurrence.
c) Those who identified the hazard need feedback on action proposed.
d) Those affected by any planned changes need to be apprised of both the hazards and the rationale
for the action taken.
e) Regulatory authorities, suppliers, industry associations, the general public, etc. have potential
information needs regarding specific risks.
f) The stakeholders can assist the decision-maker(s) if the risks are communicated early in a fair,
objective and understandable way. Effective communication of the risks (and plans for their
resolution) adds value to the risk management process.
6.5.2 Failure to communicate the safety lessons learned in a clear and timely fashion will undermine
management’s credibility in promoting a positive safety culture. For safety messages to be credible, they
must be consistent with the facts, with previous statements from management and with the messages from
other authorities. These messages need to be expressed in terms the stakeholders understand.
6.6 RISK MANAGEMENT CONSIDERATIONS
FOR STATE ADMINISTRATIONS
6.6.1 Risk management techniques have implications for State administrations in areas ranging from
policy development through to the “go/no-go” decisions confronting front-line State civil aviation inspectors,
for example:
a) Policy. To what extent should a State accept the certification paperwork of another State?
b) Regulatory change. From the many (often-conflicting) recommendations made for regulatory
change, how are decisions made?
c) Priority setting. How are decisions made for determining those areas of safety warranting
emphasis during safety oversight audits?
d) Operational management. How are decisions made when insufficient resources are available to
carry out all planned activities?
e) Operational inspections. At the front line, how are decisions made when critical errors are
discovered outside of normal working hours?
Occasions warranting risk management by State administrations
6.6.2 Some situations should alert State aviation administrations to the possible need for applying risk
management methods, for example:
a) start-up or rapidly expanding companies;
b) corporate mergers;
6-12 Safety Management Manual (SMM)
c) companies facing bankruptcy or other financial difficulties;
d) companies facing serious labour-management difficulties;
e) introduction of major new equipment by an operator;
f) certification of a new aircraft type, new airport, etc.;
g) introduction of new communication, navigation or surveillance equipment and procedures; and
h) significant change to air regulations or other laws potentially impacting on aviation safety.
6.6.3 Risk management by State administrations will be affected by such factors as:
a) time available to make the decision (grounding an aircraft, revoking a certificate, etc.);
b) resources available to effect the necessary actions;
c) number of people affected by required actions (company-wide, fleet-wide, regional, national,
international, etc.);
d) potential impact of the State’s decision for action (or inaction); and
e) cultural and political will to take the action required.
Benefits of risk management for State administrations
6.6.4 Applying risk management techniques in decision-making offers benefits for State administrations,
including:
a) avoiding costly mistakes during the decision-making process;
b) ensuring that all aspects of the risk are identified and considered when making decisions;
c) ensuring that the legitimate interests of affected stakeholders are considered;
d) providing decision-makers with a solid defence in support of decisions;
e) making decisions easier to explain to stakeholders and the general public; and
f) providing significant savings in time and money.
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