Learnings from the Aviation Risk Management into Corporate Risk Management

Abstract

The article is about learning from aviation risk management to corporate risk management. Aviation risk management plays a vital role in providing safety to air passengers. The paper studies the key areas of development in the aviation industry, such as systematic thinking processes, the role of regulator, post-accident analysis, feedback mechanism from the front-line crew, etc. can be taken to corporate risk management. The paper compares these risk management developments in the corporate sector and identifies the learning opportunities. The findings are that human-related factors in the corporate world can be improved using a similar technique to the Aeronautical Decision-Making technique. Pilots use flight simulation techniques; this can be very useful for Chief Risk Officers. There is a very strong feedback mechanism in the aviation sector leading to Crew Resource Management can be implemented in financial services. The aviation sector has become from the riskiest to the safest mode of transportation.

Keywords: Aviation risk management, corporate risk management, financial services, Aeronautical Decision Making, Pilots, Chief Risk Officer, simulation of disaster, aggregation of safety data, post-accident analysis

JEL Classification: G10, G20. G21, G22, G23, G24, G25, G26, G27, G28, G29