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“Global Safety Management: Revolution or Evolution?” Making the Business Case for Safety Management Major Discussion Points • The approach to safety management may vary among organizations but the objective is the same: reduced risk, improved safety. • Building an accurate business case for SMS implementation is not an easy task. • SMS builds on existing elements in the organization. • SMS is one element of risk management. • Comprehensive scope from training pilots to those working on the hanger floor. Summaries, Conclusions, and Action Items 2 Major Discussion Points • SMS should be a performance based standard with set outcomes and elements. Scaleable to organization. • Return on investment: eliminating accidents leads to reduced costs. Litigation fees alone can exceed $20m per accident. • One study of potential benefits of SMS system impact showed that up to 50% of the accidents studied could have been prevented had an SMS been in place. • A vital component of corporate due diligence. Summaries, Conclusions, and Action Items 3 Reaction from the Floor • Does one size fit all? Should there be a common standard? Outcomes, elements are the same, but how one meets the standard varies. It should be aligned with the business model not just compliance requirements. • Human factors training for SMS personnel is a critical element Summaries, Conclusions, and Action Items 4 Reaction from the Floor • What are you doing beyond risk assessment? Risk assessment is the heart of SMS, but there are several other elements, such as risk mitigation and risk elimination. • Customers, maintenance organizations should be part of a manufacturer’s SMS processes. A comprehensive SMS will incorporate all possible sources of information to improve safety Summaries, Conclusions, and Action Items 5 Outcomes/Additional Ideas • Difficult to quantify the benefits of SMS into dollars/euros. • There are potential significant benefits to implementing a SMS in any organization. • Executives are accountable for their organization’s safety. • Managing organizational change is the biggest challenge. Implementing SMS is a learning process. Summaries, Conclusions, and Action Items 6 Outcomes/Additional Ideas “If one thinks safety is expensive, try an accident!” Summaries, Conclusions, and Action Items 7