Risk Management: Airline Industry
Executive Summary
The airline industry is among the world’s riskiest sectors to operate. All forms of risks are evidenced in this industry, and most international airline companies have been keen towards the management of these industry related risks. Airline sector business owners in Australia have been relying on instruments and human resources around them to successfully overcome risks. This report will provide a risk management system for a new international airline company launching its fleet of second hand aircraft maintenance facility from Australia. Also, the report will develop and describe useful risk management system (RMS) features that if applied will benefit this new airline company.
Risk Management Outline
The below is an outline of a risk management system that a new international airline company launching its fleet of second-hand aircraft maintenance facility from Australia can adopt:
- Identify risks: The first step in any risk management system is to identify the potential risks. The airline company should conduct a thorough risk assessment to identify the risks associated with launching its fleet of second-hand aircraft maintenance facility. This can be done by reviewing historical data, analyzing industry trends, and engaging subject matter experts.
- Analyze risks: Once the risks have been identified, the next step is to analyze them. The airline company should evaluate the likelihood and impact of each risk to determine which risks are the most significant and require the most attention. This analysis can be done by using tools such as a risk matrix or a risk register.
- Develop risk management strategies: After analyzing the risks, the airline company should develop risk management strategies to address the risks identified. These strategies may include risk avoidance, risk mitigation, risk transfer, or risk acceptance.
- Implement risk management strategies: Once the risk management strategies have been developed, the airline company should implement them. This may involve investing in additional training or equipment, developing new policies and procedures, or purchasing insurance.
- Monitor and review: Risk management is an ongoing process, and the airline company should continually monitor and review its risk management strategies. This can be done by conducting regular risk assessments and reviewing incident reports. The airline company should also periodically review its risk management strategies to ensure they remain effective.