Risk Management in Aviation

Risk Management is a process based on the systematic collection and analysis of all relevant risks facing a company. Risks are particularly present in the aviation industry and therefore necessitates a special emphasis on a comprehensive Risk Management. The quality of the Risk Management is shaped by the enterprise culture and starts at a Board level. By integrating a Safety Management System, the operational area of the Corporate Risk Management can be further improved. It is important to realise that Risk Management is opportunity management too, where potential improvements need to be actively identified. For aviation companies it makes sense to take out a Director’s and Officer’s Insurance (D&O) to insure the management against any financial liabilities resulting from damage claims. However, these are expensive and require a time-consuming evaluation.