QUALITY MANUAL -> 6.1.1. Loran Risk Management Policy
Loran interprets the concept of “risk” as follows:
Risk is the combination of loss and severity consequences arising from potential situations and the degree of harm.
Risk management is not just a simple subject for Loran Aerospace; risk management forms the basis of the Loran Quality Management System, and risk assessment is made in all processes while start in taking a new decision. Loran top management plans, implements, and regularly controls the processes to establish an effective and efficient quality management system.
Loran carries out its risk management in accordance with the ISO 31000 Risk Management Standard.
While managing Risk Policy, Loran considers AS9120 Rev.B Article 4.1 (4.1. Understanding the Organization and Its Context) and Article 4.2 (4.2. Understanding the Needs and Expectations of Interested Parties). Loran keeps and manages all records related to the risk management process on the ERP system.
The purpose of the Loran Risk Management Policy is to create and protect value, it also improves performance, encourages innovation, and supports achieving objectives. The risk management policy for Loran QMS is based on Principles, Leadership, and Process pillars. These three trivets have a manageable and updatable structure that complies with Loran quality targets.
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Risk Types: Loran QMS defines the types of risks that may be experienced during management processes as follows. |
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Total Risk |
The sum of identified and unidentified risks. |
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Identified Risk |
Risk that has been determined through various analysis techniques. The first task of system safety is to identify all possible risks within practical limitations. |
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Unidentified Risk |
A risk that has not yet been identified. Some unidentified risks are subsequently identified when a mishap occurs, and some are never known. |
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Unacceptable Risk |
Risk that the managing activity cannot tolerate. It is a subset of identified risks that must be eliminated or controlled. |
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Acceptable Risk |
Acceptable risk is the part of the identified risk that is allowed to persist without further engineering or management action. Making this decision is a difficult yet necessary responsibility of the managing activity. This decision is made with full knowledge that is the user who is exposed to this risk. |
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Residual Risk |
Residual risk is the risk left over after system safety efforts have been fully employed. It is not necessarily the same as acceptable risk. Residual risk is the sum of acceptable risk and unidentified risk. This is the total risk passed on to the user. |
Risk Threshold:
According to Loran Aerospace risk assessment and management policy, Risk Threshold is the maximum acceptable level of the risk severity. A corrective action process must be started for all risk factors reaching the threshold level. For every risk factor that is equal to or above this level, preventive policies are initiated, and policies aimed at reducing the severity of the risk are implemented by Loran top management. Depending on the severity of risk, implemented policies and results are evaluated in management review meetings or external meetings.
Risk assessment is made by Loran top management in all processes while starting a project or taking a new decision to plan and manage of the process and aims to create new opportunities from the potential risks.
Risk Severity:
The extent of the damage for Loran, its employees, and its quality goals resulting from a risk event occurring.
When planning the quality management system, Loran considers problems and requirements and identifies the risks and opportunities that need to be addressed:
- Assuring that the quality management system can achieve its intended results,
- Increasing the desired effects,
- Prevent or reduce unwanted effects,
- To ensure improvement, to always renew itself and to follow the daily.
Risk Scale:
Loran top management examines the risk analysis in Loran ERP system depending on the Risk Scale it has created according to the Matrix Method. In doing this review, Loran considers its own process operations, aviation requirements, customer requirements and international requirements.
Matrix Method:
Loran Aerospace conducts risk analysis according to the Matrix Method. This risk assessment method is a technique that considers the risks experienced in the past and using workplace / sector statistics. Loran conducts Risk Assessment as follows:
- Determination of the activity,
- Determining the risk source (process),
- Determining the owner of the process,
- Determination of the risks,
- Determining the possibilities,
- Determining the damage (it will cause when risk occurs),
- Evaluation of the risks,
- Determining the results of the risk,
- Deciding the results depending on the risk and determining the measures to be taken.