Realize the benefits of an aerospace risk management process and why it should be part of every organization’s culture.

Risk is an undesirable situation or circumstance that has both the likelihood of occurring and a potentially negative consequence. Risks are present throughout an organization and can be internal or external.

Internal areas in an organization where risk could present a significant impact can include contracts, design, supply chain, planning and production. Internal risks have a high probability that they can be controlled.

Conversely, external risks, such as natural disasters and economic, political and social risks, are generally difficult to predict or control.

Risk management is a repetitive process to identify, assess, reduce, accept and control risk. The process should be systematic, proactive, comprehensive and cost effective while taking into account the business, cost, technical, quality and schedule constraints. Each key process owner should identify risk and mitigate appropriately.