Risk Management System: New Airline
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.
Every business is exposed to a potential number of risks which call for evaluation and management through risk management system. Risk management system refers to the process of identifying, assessing, and controlling the challenges or threats that face the capital and earnings of an organization. Such risks could be caused by financial uncertainties, natural calamities, and data-related risks. It involves establishing the policies and strategies to control or alter the risks the company’s cash flow is exposed to. This paper features the possible risks that the new international airline in Australia may face by handling a fleet of second-hand aircraft, maintenance facility, and offices and passenger handling facilities at capital city airports. It establishes the features of the risk management system that should be developed in line with the company’s operations.
Risk refers to the situation which involves exposing the company to danger, harm, or loss.
Risk assessment– the process of appraising the potential risks that the company’s operations are exposed to.
Risk management – refers to forecasting and appraising the financial risks and establishing the process to minimize their impacts.
Risk reduction – establishing the ways to reduce financial losses and the probability of risk actualization.