Enterprise Risk Management: Mitigating Financial, Legal, and Regulatory Risk
“This article is the third in a series of four articles examining enterprise risk management (ERM) in business aviation. ERM is a practical, evolutionary step for business aircraft operators that have achieved Stage 3 of the International Standard for Business Aircraft Operations (IS-BAO). ERM goes beyond the safety risk management, change management and basic emergency response plan (ERP) components of a mature safety management system (SMS). Rather, it is a strategic method of managing aviation risks across the entire organization that includes an ERP as a component part, Although ERM can and should be applied to all types of risks faced by the company as a whole, this article will focus on mitigating the unique risks associated with an aviation accident or incident.”
“Attorney Paul Lange, of the Law Offices of Paul A. Lange, LLC, assists clients in the aftermath of incidents and accidents. He noted, ‘People create problems for themselves that didn’t previously exist by reporting inconsistencies that basically invite the NTSB and FAA to start questioning company policies or procedures. For example, operational control is a common pitfall following an accident because the pilot and the company sometimes give the investigating parties two different answers, not because of any wrongdoing, but simply because they failed to talk to one another. In some cases, no illegal or improper activity occurred, but a failure to communicate properly resulted in misinformation being provided to the NTSB or FAA.”