OHSI Presentation on Risk Profile Kimberley Turner Chief

OHSI Presentation on Risk Profile Kimberley Turner Chief Executive Officer Aerosafe Risk Management Slide 1 EXHIBIT/P-00058

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 2

Part 1: Introductions Slide 3

Introductions • • • Slide 4 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

Part 2: Risk Management Slide 5

What is Risk? Risk is the chance of something happening that will impact upon “objectives” ISO 31000 Risk Management Slide 6

What is Safety Risk? Risk is the chance of “a safety” something happening that will impact upon objectives. ISO 31000 Risk Management Slide 7

What is Safety Risk? Risk is the chance of something happening that will impact upon “a safety” objective. ISO 31000 Risk Management Slide 8

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 9

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Governance & Oversight for Integrating Helicopter Transportation Safety Slide 11

Part 3: Risk Profiling Slide 22

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. Slide 23

Industry Risk Profile • • Slide 24 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

What is Risk? Risk is the chance of something happening that will impact upon “objectives” ISO 31000 Risk Management Slide 25

Industry Risk Profile Methodology Slide 33

IRP Methodology • • Slide 35 ISO 31000 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

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 36

Example Risk Matrix Result Presentation

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 39

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 41

Part 4: Additional discussion topics • Governance • Risk Management • Safety Management Systems • Contract Management Slide 42

Governance Creating an accountability framework for risk reduction through good governance Slide 43

Defining Corporate Governance “The systems by which organizations are directed and controlled” Slide 44

Compliance Slide 45

Compliance Assurance Slide 46

Risk Management Compliance Assurance Slide 47

Compliance Risk Management Governance Assurance Slide 48

Risk Management Integrating Safety & Governance through risk management Slide 49

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SMS Aviation Safety Management Systems (SMS) Slide 53

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 54

Defining SMS……. 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) Slide 55

Defining SMS……. “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) Slide 56

Defining SMS……. 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 Slide 57

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) Slide 60

Component of an SMS

Contract Management Focusing on the Safety & Risk Management component Slide 62

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 63

Part 5: OHSI use of Risk Management Concepts Slide 64

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 65

OSHI Adopts Risk Based Approach Phase OHSI Risk Profile Preparation Establishing Context 1 A Public Hearing Issues identification and data collection 1 B Investigative Phase Development of IRP in consultation with industry 1 C 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 Evaluation of draft IRP against TSB investigation report Slide 66 Response to TSB Investigation

Question & Answer Session Slide 67