Introduction
Risk management program deals with ways that can be used to minimize the possibilities of certain events happening or even reducing the consequences of such events. In the field of aviation, risk management deals with utilizable techniques to improve aviation safety. An effective strategy for managing risks minimizes the costs of risks and at the same time maximizes its benefits. According to Fukukawa and Mock (2011), the result of the risk assessment depends on the approach that is used to assess the risk (p.75). In aviation, risk management involves identifying the possible risks, scrutinizing their implications, deciding on the course of action to be undertaken, and finally evaluating the results of the course of action.
Question 1: Risk measurement
To assess the level of risk more effectively, risk matrix will be applied. This method helps in determining severity and the probability of the risk anticipated to occur. Risk matrix is obtained by multiplying the probability of the risk happening with its consequences if it happens to occur. This matrix may show the level of likelihood that the event may take place, using words such as low, moderate, high, or even extreme. The organization can then access the probability of different events occurring which are then contrasted with their costs. Other than probability, other parameters that may result from external factors will also be assessed to come up with an accurate conclusion.
Question 2: Determining Levels of Risk
The likelihood levels mentioned above will be used to determine the risk of safety in the aviation field. The likelihood and severity will be plotted against each other to assess the risk of every event. A table with the following rows in X-axis (frequent, probable, occasional, remote and impossible) will be plotted against (catastrophic, critical, marginal and negligible) in the Y-axis. The events will then be assigned different numbers depending with likelihood and their severity to obtain matrix for risk assessment (Yodmongkon, 2010, p.514).
Question 3: Action levels
After carrying out a thorough risk assessment, different events are classified as critical, serious, marginal, or negligible. The action point is then taken depending on the results of assessment. The critical risks are assigned to the senior managers, serious, to the program managers, medium, to the project managers, and low to other staffs. The consequences of each action move downward where senior managers have to make decisions for the most critical events and other junior managers for less critical decisions.
Question 4: Special procedures
The level of accuracy of this method is low and at times, it may lead to wrong conclusion. Therefore, in addition to the probability method, other methods such as new computerized techniques will also be applied (Cox & Louis, 2008, p.497). Qualitative risk assessment will also be employed where necessary to cater for risks that may not be thoroughly covered by other methods. This will help to raise the level of accuracy in assessing the risks that are likely to occur.
Conclusion
Risk assessment is very important in aviation since the success of any aviation company depends so much on its ability to deal with transport safety. Risk assessment will guide managers when making decisions on the action to take in order to address risks associated with different events. Risk matrix is one of the common methods used to measure probability and severity of events though there are other methods.
References
Cox, J., & Louis, A. (2008). What’s Wrong with Risk Matrices? Risk Analysis: An International Journal, 28(2), 497-512.
Fukukawa, H., & Mock, T. (2011). Audit Risk Assessments Using Belief versus Probability. Auditing, 30(1), 75-99.
Yodmongkon, P. (2010).Using Risk Assessment Technique to Consolidate Indicators in IC Process: Case Study of Suanboonyophatham School. Proceedings of the International Conference on Intellectual Capital, Knowledge Management & Organizational Learning, 514-523.