Slide 1

OHSI Presentation on Risk Profile

Kimberley Turner

Chief Executive Officer

Aerosafe Risk Management

EXHIBIT/P-00058

Slide 2

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 3

Part 1: Introductions

Slide 4

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 5

Part 2: Risk Management

Slide 6

What is Risk?

Risk is the chance of something happening that will impact upon

“objectives”

ISO 31000 Risk Management

Slide 7

What is Safety Risk?

Risk is the chance of “a safety” something happening that will impact

upon objectives.

ISO 31000 Risk Management

Slide 8

What is Safety Risk?

Risk is the chance of something happening that will impact upon

“a safety” objective.

ISO 31000 Risk Management

Slide 9

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 10

Slide 11

Governance & Oversight for Integrating Helicopter Transportation Safety

Slide 22

Part 3: Risk Profiling

Slide 23

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.

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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 25

What is Risk?

Risk is the chance of something happening that will impact upon

“objectives”

ISO 31000 Risk Management

Slide 33

Industry Risk Profile

Methodology

Slide 35

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 36

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

Example Risk Matrix Result Presentation

Example Risk Matrix Result Presentation

Slide 39

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 41

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 42

Part 4: Additional discussion topics

•Governance•Risk Management •Safety Management Systems•Contract Management

Slide 43

Governance

Creating an accountability framework for risk reduction through good governance

Slide 44

Defining Corporate Governance

“The systems by which organizations are directed and controlled”

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Compliance

Slide 46

Compliance

Assurance

Slide 47

Risk Management

Compliance

Assurance

Slide 48

Risk ManagementCompliance

Governance Assurance

Slide 49

Risk Management

Integrating Safety & Governance through risk management

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Slide 51

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Slide 53

SMS

Aviation

Safety Management Systems (SMS)

Slide 54

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 55

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)

Defining SMS…….

Slide 56

“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)

Defining SMS…….

Slide 57

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

Defining SMS…….

Slide 60

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)

Component of an SMS

Slide 62

Contract Management

Focusing on the Safety & Risk Management component

Slide 63

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 64

Part 5:

OHSI use of Risk Management Concepts

Slide 65

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 66

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 phase

Consultation and confirmation of agreed risk treatments measures

OHSI findings and recommendations

Submission of the draft IRP to the Commissioner as requested

2 Response to TSB Investigation

Evaluation of draft IRP against TSB investigation report

Slide 67

Question & AnswerSession