A B O UT AR G US

ARGUS International, Inc. (ARGUS) is the industry leader in providing specialized aviation services to companies that manufacture, finance, operate, maintain, and market various aviation products and services, as well as to the end-user of these same services. With a global footprint and unparalleled expertise, ARGUS can provide the aviation marketplace with the information needed to make educated decisions and manage risk effectively.

PROS 6021 South Syracuse Way, Suite 302 Greenwood Village, CO 80111 USA

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PRISM AN ALY SIS OF THE ARGU S PR OS AU D IT R EC OMMEND AT IONS F OR SA FETY M ANA GEMEN T

Each year, ARGUS PROS audits a significant number of operators from both private and commercial flight operations. All aspects of

the flight operation are reviewed during each audit, to include the organization’s safety management system.

This report is a summary of those audit results, compared to the ARGUS Platinum Standard or IS-BAO, in the measure of safety

management effectiveness. These audits follow a “systems” and “process” methodology, and are not exclusively focused on

compliance.

The goal of each audit is to seek evidence of effective and efficient operations and

industry best practices, including implementation of a safety management system

(SMS) as defined by FAA AC120-92A or IS-BAO.

The objective of this report is to highlight those recurring problem areas found in

SMS implementation and execution. This widened aperture will help operators

focus their efforts on common deficiency areas cited by auditors, and use this

information to improve their own SMS implementation and execution efforts.

PRISM, a wholly owned subsidiary of ARGUS International, Inc., is an industry-leading provider of Safety Management Systems (SMS) solutions, an FAA recognized certification consultant and is designated by IBAC as an IS-BAO Support Services Affiliate. ARGUS PROS (Partners and Resources for Operational Safety), a wholly-owned subsidiary of ARGUS International, Inc., is a worldwide leader in performing on-site safety audits for commercial air carriers, corporate flight departments, charter operators, helicopter, and special purpose aircraft operators. ARGUS PROS is an experienced quality and safety assurance provider, and committed to supporting and enhancing safety initiatives for operators worldwide.

A R GU S P R OS S P EC IA L R EL EA S E

2012 SMS Audit Results

REV 04/2013

Top SMS Recommendation Areas

58%- Risk Assessment

45%- GOM

38%- SMS Training

36%- IEP

26%- ERP Documentation

S MS AU DIT R ES U LTS 2012

UNDER ST AN DING THE AN ALY SIS AND THE R E SULT S

A total of 73 audits were analyzed spanning the period from January 1, 2012 to December 31, 2012.

The figures contained in this report represent analysis of operators that had deficiencies in a particular SMS focus area. For

example, 10 (14%) of the 73 operators audited had a weakness in the area of Emergency Response Program (ERP) Go Team. Even

though an ERP is placed under the umbrella of SMS, the results of this report are separated into SMS elements and ERP elements.

The majority of the 2012 audit findings point to deficiencies in Risk Assessment and General Operating Manuals (GOM). Risk

Assessments help identify, evaluate, mitigate, and validate current risks in the operation. They can also determine gaps in policy

and procedures when a change is made, such as adding a new aircraft to the operation. This is known as “change management”

and is a process needing improvement in many operations according to audit results. A GOM defines the policies, procedures, and

organizational structures to accomplish company goals. It must be accurate, up-to-date, and consistent with other manuals in

order to prevent miscommunication and confusion.

S MS AU DIT R ES U LTS 2012

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BRE AKD OWN THE SAF ET Y MANAG EMEN T SY ST EMS RECOMMEN DA T ION S

SMS Audit Results 2012 argus.sales@argus.aero +1 513.852.1010

S MS AU DIT R ES U LTS 2012

R ISK ASSESSMEN T – 58%

SAMPLE AUDIT RECOMMENDATIONS:

It is recommended that the company continues to develop the Flight Risk Assessment tool and implement it.

The SMS should include a change management process and be implemented.

GUIDELINES:

A risk assessment should be performed when it is determined there is an elevated level of risk

Risk assessment is appropriate when there is a change in the mission, operating environment, procedures, etc.

Risk mitigation may change company policy or create a new procedure

Define the complete risk assessment process in the SMS manual

G ENER AL OP ERA T ING M ANU AL – 45 %

SAMPLE AUDIT RECOMMENDATIONS:

The organizational chart in the GOM should reflect the current management structure.

The duties and responsibilities of the Safety Manager should be consistent between the Operations and SMS Manuals

GUIDELINES:

Contain accurate descriptions of a safety system

Contain an accurate outline of Safety Officer/Manager responsibilities

Maintain consistency with SMS manual

SAF ET Y M ANAG EMEN T SY STEM TR A IN ING – 38 %

SAMPLE AUDIT RECOMMENDATIONS:

The Safety Manager should receive formal training for the development and implementation of an SMS

Employee SMS training should be accomplished

GUIDELINES:

Annual safety training for employees is necessary

Training subjects may include: accident investigation, safety management system fundamentals, company safety

performance

Training options can include online, classroom, in house developed seminar

INT ERN AL EV ALU AT ION PR OGR AM – 36%

SAMPLE AUDIT RECOMMENDATIONS:

It is recommended that in-house auditors receive and document training.

Resolution of findings from the Internal Evaluation Program should include a root cause analysis and documented follow-

up when appropriate.

GUIDELINES:

The IEP should contain a documented process for: assigning responsibility, conducting audits, identifying and mitigating

hazards/deficiencies and a corrective action

IEP auditors should receive training in conducting audits

IEP should be conducted in accordance with the operator’s Safety Management System manual

SAF ET Y C OMMIT TE E – 26%

SAMPLE AUDIT RECOMMENDATIONS:

The Safety Committee should be structured to show old and new business, mitigation processes used to reduce identified

risks, and whether an issue is open or closed

Safety Committee should meet regularly and document minutes of the meetings

GUIDELINES:

Meeting schedule is established, meetings follow an agenda and are documented with minutes

Agenda items are IEP findings, hazard reports, risk assessments, etc.

Reflect open and closed items or suspense dates in meeting minutes

Membership should include management, and representatives from each functional area of the company

SAF ET Y P OL ICY – 23%

SAMPLE AUDIT RECOMMENDATIONS:

The SMS manual should include a letter outlining the safety policy, clearly describing safety as an operational priority, with

a non-punitive clause signed by a company executive.

Recommend enhancing the promotion component of the SMS by utilizing a campaign offering rewards for SMS

participation.

GUIDELINES:

A safety policy statement signed by an executive will help establish a positive safety culture and should be clear in its non-

punitive posture

Policy statement should be reflected in the GOM/FOM and SMS manual

Policy statements should be reviewed and updated periodically

A rewards program can help encourage personnel to adopt an SMS program

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S MS AU DIT R ES U LTS 2012

SAF ET Y M ANAG EMEN T SY STEM MANU AL – 21%

SAMPLE AUDIT RECOMMENDATIONS:

Conform the SMS manual to the processes they wish to pursue in their SMS execution. The SMS should be fully

implemented as described in the SMS manual.

GUIDELINES: The SMS manual should be:

A distinct, controlled document, or a defined part of a GOM

Reviewed and controlled by an assigned manager

Tailored to the operation (i.e. company organizational chart, risk assessment process, IEP process, etc.)

HA ZAR D R EP OR TIN G – 12%

SAMPLE AUDIT RECOMMENDATIONS:

A hazard identification process needs to be promoted throughout the organization in order to provide input to the overall

risk management program

Increase effort to educate and promote, to all employees, the importance of observing and reporting hazards, incidents,

and close calls

GUIDELINES:

Identify existing and potential hazards through a reporting system

Track hazards to prevent reoccurrence

Define a process for hazard identification and tracking

Communicate to employees that reporting is non-punitive

Promote reporting to increase participation

EM ERG ENCY RE PON SE PLA N DOC UMEN TA T ION – 26%

SAMPLE AUDIT RECOMMENDATIONS:

Recommend that on-site team members be identified in the SMS manual by official job position within the company and all

EPR documents be controlled

The Emergency Response Program does not contain guidance for dealing with in-flight incidents involving injuries or

serious medical problems suffered by passengers or crew.

GUIDELINES:

The Safety Manager must maintain the ability to modify the ERP at any time

The ERP can be a stand-alone document or identified within the SMS manual

Every portion of the manual (handouts included) must be current via a revision control process

Go team responsibilities must be documented

Employees should be included

BRE AKD OWN THE EMERG ENCY R ESPON SE PRO GRA M RECOMMEN DA T ION S

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S MS AU DIT R ES U LTS 2012

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BLO OD BORNE P ATH OGENS AND PE RSON AL PR O TEC T ION E QU IPMEN T (PP E) T RA IN ING – 16%

SAMPLE AUDIT RECOMMENDATIONS:

Recommend the on-site response team be trained in the use of the bio-hazard suit

Recommend the on-site response team be trained for BBP exposure

GUIDELINES:

On-site team receive bloodborne pathogens and PPE training and be offered the Hepatitis B (HBV) inoculation

In the case of a team member who refuses the inoculation, a signed, written waiver must be documented; without these

items on-scene access to an accident will likely not be granted by the NTSB

N EXT- OF-K IN N OT IF ICA T IO N AND F AM ILY A SSISTANC E – 15 %

SAMPLE AUDIT RECOMMENDATIONS:

The ERP should include trauma counseling to company employees in the event of an accident or other devastating event

Personnel responsible for notification of next-of-kin and family assistance individuals should be appointed and receive

documented training regarding their duties and responsibilities

GUIDELINES:

N.O.K. notification is accomplished by personnel such as HR or local law enforcement with follow-up by senior manage-

ment

Options for family transportation to the accident should be considered

The selection process, duties/responsibilities, and training of N.O.K. and Family Assistance personal should be documented

G O- TE AM– 14%

SAMPLE AUDIT RECOMMENDATIONS:

Construct Go-Kits or establish an alternate process for obtaining the kits

It is recommended that the ERP Go-Team have alternates assigned and trained

GUIDELINES:

If the company conducts international operations Go-team members should be required to maintain a current passport

Training and responsibilities of each Go-team member should be documented

ERP responders should also be cross-trained for other positions and/or alternate employees selected to fulfill their duties

in the event a key responder is unavailable

In the case of a team member who refuses the inoculation, a signed, written waiver must be documented; without these

items on-scene access to an accident will likely not be granted by the NTSB

S MS AU DIT R ES U LTS 2012

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E RP DR ILLS – 8%

SAMPLE AUDIT RECOMMENDATIONS:

Test, or drill the ERP. The Emergency Response Plan (ERP) should be exercised to identify potential problem areas.

GUIDELINES:

A drill should be conducted to verify the ERP will work properly, and include all appropriate personnel in the drill

All personnel with responsibilities in the ERP should be trained before the drill

N TSB ACC IDEN T IN VE STIG AT ION TR AIN ING – 7%

SAMPLE AUDIT RECOMMENDATIONS:

Recommend the on-site Go-team be trained in NTSB investigation procedures

GUIDELINES:

Designated on-site responders should have formal training in the NTSB party process and accident investigation

The NTSB Accident Investigation Orientation for Aviation Professionals course is available

COMPA RISON OF THE 20 12 v. 2011 SAFE TY MAN A GEMENT SYSTEM S R ECO MMENDA T ION S

2012

2011

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COMPA RISON OF THE 20 12 v. 2011 EMERGENC Y R ESP ON SE PROGR AM RE C OMMEND AT IONS

2012

2011

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SMS AN D ER P REC OMME NDA TION S 2012 v. 2008 -2011 COMBIN ED

SMS

ERP

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SMS AN D ER P SUMMARY FROM 2008 -2012

SMS

ERP

S MS AU DIT R ES U LTS 2012

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