A process that includes assessing of the risks, risk decision making and risk control implementation is called Operational Risk Management (ORM). Risk controls can result in acceptance of the risk, its mitigation or, in the best-case scenario, its complete avoidance.
Operational Risk Management is based on four principles:
- The risk should be accepted when the benefits outweigh the cost;
- No unnecessary risk should be accepted;
- Risk should be anticipated and controlled by planning beforehand;
- Risk decisions should be made at the right time and at the right level.
The process of risk management begins by establishing the context of the risk. Then the assessment of the risk starts by identifying it, analysing it and at the end evaluating it. After getting immersed in the sources of the risk and once we fully understand if, we are then focusing on the ways it can be treated. When that step is done, all that is left to do it to monitor the changes and tweak the methods of treating risk how we deem necessary.
Safety Risk Management (SRM) is a set of practices that can keep in check hazards and their subsequent risks in the aviation industry as explained by the Civil Aviation Safety Authority (CASA).
SRM consists of three operations:
- Identification of potential hazards;
- Their in-depth analysis;
- Reassessing what can be done to eliminate or mitigate them.
Constant evaluation and examination of what can cause harm in the line of your work are mandatory for making sure that as much as possible safety measures are installed and working.