Sofema Aviation Services (SAS) www.sassofia.com considers the fundamentals of Risk & Performance-Based Oversight.
Introduction
Performance-Based Regulation (PBR) may be considered as a data-driven (data-centric) approach to regulations
- PBR is effectively driven by both safety risk and performance metrics
- PBR facilitates:
o A more proportionate outcome
o Specific & Targeted
o Efficient & Cost-Effective Approach to Regulations
o Transparent & Adaptable Approach
o Proactive
Definitions
Prescriptive Regulation: A regulation that specifies requirements for mandatory methods of compliance.
Safety Performance Indicator (SPI): A data-based parameter used for monitoring and assessing safety performance. (Sources: ICAO)
Performance-Based Regulation (PBR): A regulatory approach that focuses on desired, measurable outcomes.
Performance-Based Environment (PBE): An environment based on safety performance indicators (SPIs) on which safety assurance and promotion, as well as performance-based regulation and performance-based oversight, can be built.
Oversight: The function by means of which a competent authority, ensures that the applicable requirements are met by regulated entities.
Risk-based Oversight (RBO): A way of performing oversight, where planning is driven by the risk profile and execution, besides ensuring compliance, focuses on the management of operational risks.
Performance-Based Oversight (PBO): PBO as an assessment of the level of compliance exhibited by an enterprise with respect to the aviation regulations.
- This assessment is used to determine whether the organization has effective or non-effective performance (Note: This is a consideration related to risk-based decision making.)
Risk profile (of the organisation): Includes: The specific nature of the organisation; the complexity of its activities; The results of past certification and/or oversight; and the operational risks.
Risk-Based Audits – Targets Manpower Availability
Compared to traditional auditing methodology, where audits can be limited to the available resources, risk-based audits focus the available resources in targeted way.
Higher risk business areas receive a larger proportion of the available auditing resource.
Risk-based auditing places the management’s identification of Key Risk Indicators at the centre of the auditing strategy.
During the audit, lifecycle risks continue to be addressed with outcomes and feedback provided to the leadership team to promote optimization of the identification of primary risks.
The Challenge for the Regulatory Authority
- Performance-Based Oversight (PBO) implies a new approach for authorities to discharge their responsibilities, as it considers the implementation of safety management by service providers and links it to the implementation of state safety programmes (SSPs) by states.
- In the context of performance-based regulations, the focus is on measurable safety objectives, rather than prescribing mandatory methods of compliance to achieve the same objectives.
In the future, Performance-based safety oversight should focus on the effectiveness of SMS leading to optimization of oversight activities. (Whilst continuing to ensure the service providers’ compliance with technical regulatory requirements.)
Next Steps
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Aviation Risk, Performance Based Oversight (PBO), Key Risk Indicators, Performance-Based Environment (PBE), Safety Performance Indicator (SPI), Performance-Based Regulation (PBR), Risk & Performance-Based Oversight, Safety Performance Indicators, SAS blogs, Auditing, Aviation SMS, Safety Risk, EASA regulations, safety performance, Safety Assurance, Risk Management, Compliance
