Managing risks in Airport transport industry

Résumé du document

A risk is the exposure to a potential danger, inherent in a situation or activity that may lead to negative consequences for the organization or the individual. Its impact may put into question the existence of the company, its resources, its products and services, and its clients. Risk is inherent to man since all human enterprizes involve risks. Therefore, any activity has to use sophisticated processes to protect itself against risks. This paper highlights risk management practices of a specific industry, the airline industry. Like every activity, airlines have a specific risk profile. It faces substantial strategic, financial, operational and hazardous risks. Through this paper we will analyze the five most significant risks, terrorism, weather conditions risk, human negligence, aircraft failure, and the market risks of this sector and the strategic plans to minimize them.

Extraits

[...] This risk is very important and can menace the airline industry. Global economies will be at risk if airlines are forced to dramatically reduce their operations and close important routes due to record high fuel cost. Conclusion We can't avoid risks, they are everywhere. However, unplanned incidents would be worse if there was not risk management plans to prevent them. The prevention is better than cure, that's why we must be aware of the risks. As Hopkin (2009) puts it, “there is the expectation that Risk Management will assist organisations achieve more successfully”. [...]

[...] Nevertheless, environmental conditions can change very rapidly in real-world conditions. Pilots and crews must be prepared for the unexpected. The crew must be well trained to avoid panic, often revise emergency procedures, and know what to do when such events occur. However, crashes which occur because of bad weather conditions can't always been avoid. Indeed, although safety has improved as a result of significant technological developments in air transport, aircraft is still a means by which we are transported by air, and we cannot deny that the possibility of an aircraft crash will not be zero. [...]

[...] Le management des risques dans l'industrie du transport aérien Table of contents 1. Introduction Hazard Risks Terrorism risk Environmental conditions risks Operational risk Human negligence risk Logistic and network risks Financial risks Fuel prices risk Conclusion References Appendix 9 Introduction A risk is the exposure to a potential danger, inherent in a situation or activity that may lead to negative consequences for the organization or the individuals. Its impact may put into question: The existence of the company Its resources (human or financial) Its products and services Its clients Risk is inherent to man since any human enterprise involves risks. [...]

[...] They spend more than $ billion each year on risk management. In such a highly competitive and politically charged operating environment, an integrated and holistic approach to risk management not only reassures staff, travelers and shareholders but also protects against reputational damage. References Combating Terrorism, Journal of Air Transportation by Ghobrial, Atef, Irvin, Wes A Southern California Safety Institute: http://www.scsi- inc.com/orm.html Financial Risk Exposures in the Airline Industry by Geoffrey F. [...]

[...] What's more, now we have to take off our shoes while we pass the security control. Indeed, terrorist can hide explosives in hills! From here, not only were there negative aspects, we can also point to positive aspects. First, risk consciousness has been changed and a review of cost structures has commenced so as to correspond to risk. Moreover, the efforts made with the safety improvements have reassured consumers. Luckily, thanks to those measures which have been applied the number of terrorism acts has decreased (See Appendix 3). [...]