What is Risk?

Ask ten people what they think risk is and you will get ten different answers. It does not take a thorough search of risk literature to reveal the same problem. Definitions abound and they are all worded in slightly different ways. What is important is to understand the concepts underlying risk.

Risk is the chance of injury or loss. Insight can be gained by listening to how people refer to risk in an everyday context and, particularly, in the aviation environment. What emerges is that there are different ideas about risk, based on personal perceptions. Nonetheless, its underlying concepts remain—a chance that something is going to happen and consequences if it does.

What is Risk Management?

Risk management introduces the idea that the likelihood of an event happening can be reduced, or its consequences minimized. In Civil Aviation, the term is frequently used in the context of decision-making about how to handle situations, which affect aviation safety. Effective risk management seeks to maximize the benefits of a risk (usually a reduction in time or cost) while minimizing the risk itself.

Risk management is the process of identifying risks, assessing their implications, deciding on a course of action, and evaluating the results. Effective communications is key to the success of the process.

Why Risk Management?

Risk management is important in the Civil Aviation organization because the effectiveness of service delivery and safety monitoring depends on it. Many decisions have an immediate impact on the department’s clients. The ability to manage risk in a consistent and effective manner impacts on perceptions about the overall quality of work. With a widely-dispersed inspector population and diverse responsibilities, it is important to be able to demonstrate to the aviation community and the public that the department is committed to making good safety-related decisions.

A by-product of risk management is an improved level of comfort that resources are being allocated in the best possible way to meet safety priorities. This is especially important given the department’s shared commitment to safety with the aviation community, and that resources to meet that commitment are limited.