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Gearing up for Aviation Risk
On the 18th November, Odgers Interim and Odgers Berndtson hosted an event to discuss the challenges currently facing the aviation industry and best practice processes for risk management. We brought together a number of distinguished professionals and leaders in the industry for a private dinner at our offices on Cannon Street.
Our guest speaker for the evening was Graham Pickett, a Partner and Global Leader for Travel and Aviation at Deloitte. With over 20 years’ experience in the aviation industry, he drew upon his extensive sector knowledge to deliver an insightful and thought-provoking talk.
Graham’s message was clear: If airlines do not have policies and practices in place to deal with the continually shifting risk landscape within the aviation industry, they will get left behind.
He went on to note that, while the sector is generally well versed in managing more traditional forms of risk, such as passenger and equipment safety and security, they lack the agility to respond to the new challenges that emerge on a daily basis. From terrorist incidents and geopolitical turmoil to major shifts in regulation and developments in technology.
During the dinner, Graham explored some of the lesser known areas of risk within the industry and discussed a new risk framework. The framework provides a structured four-tiered method to enable senior managers to understand their risk profile in order to design an approach that is flexible and can anticipate and adapt to new challenges:
- Plan - to better understand and anticipate threats
- Invest - to improve the management of risk during project delivery
- Allocation - to structure the portfolio to optimise the risk-return position
- Challenge - to develop robust and flexible strategies that explore possible ‘what if’ scenarios
When closing the dinner, Graham warned that the aviation sector has, in many areas, a static approach to risk management and this leaves it vulnerable. He concluded by urging businesses to consider rapidly evolving external environment and ensure that risk management processes are dynamic and agile. Otherwise, critical issues that could impact safety and profitability will be missed.