Assignment task: Risk management from an insurance perspective. Scenario 1 and Scenario 2, complete items 1-4 that immediately follow each scenario.
Scenario 1: Flight Instruction
Jonathan provides flight instruction in his leased Cessna Skyhawk. He typically works 5-6 days a week and has anywhere from 12 to 15 students, depending on the time of the year.
His Skyhawk is stored on the flight apron with chain tie-downs. Jonathan often allows his friend Erin to borrow the plane. Erin also provides flight instruction.
Occasionally Jonathan likes to take a few friends up to take aerial photography; however, this is fine for him because he makes sure to charge a small fee for fuel, maintenance, the use of the airplane, and his time. Other times friends will want to take a scenic trip around the local area. Again, this is no problem for Jonathan as long as his friends chip in some money.
Jonathan contracts with the local FBO for his fueling and maintenance service. According to the contract, Jonathan is responsible to move the aircraft to the ramp outside the maintenance hangar. Since the maintenance hangar is near his tie-down, he and Erin usually move the plane by hand, guiding it through the other aircraft parked in the area.
The money Jonathan earns from providing flight instruction and aerial photography flights is just enough to make ends meet for himself and his family. He has two children - 3 and 6 - both children hope to become pilots someday (just like Dad). Jonathan's spouse keeps the business books and has a remote (working from home) part-time job.
Identify all of the potential risks found in the scenario. Wherein lies the risk? (Is it an action, such as a student pilot flying an aircraft? Or is it a situation, such as an aircraft not being locked up at night?)
Classify each risk you've identified according to the type of loss that may occur: property, loss of use, liability, criminal/fraud, key person.
Choose two of the risks you've identified. What risk control techniques can be used or are being used to manage these risks?
What questions would you ask to make sure you have thoroughly evaluated the risk associated with each scenario?
Scenario 2:
The FBO's maintenance facility demonstrates a high commitment to safety and excellence. Each of its 6 full-time and 4 part-time staff is certified to repair several Cessna, Piper, and Diamond aircraft. Additionally, they participate in semi-annual continuing education courses and monthly safety seminars.
The large hangar can hold up to 10 aircraft the size of the Skyhawk and is clearly marked so aircraft stay in their appropriate space once inside the hangar. At least three employees move the planes from the ramp into the hangar. One person operates the tug, while the other two ensure the plane does not come into contact with any other aircraft, tools, or other items in the shop.
A contracted 3rd party parts office is located within the hangar and makes sure to have the most-requested parts on hand to limit aircraft downtime. Maintenance logs and parts are kept under lock and key and can only be retrieved by authorized personnel. The hangar has closed access; visitors must be escorted by employees at all times.
The hangar is cleaned daily by a contracted 3rd party company. Technicians lock their personally owned tools every night in their personally owned toolboxes. The hangar is armed with an alarm system and overnight 3rd party contacted security guards are on the airfield.
Identify all of the potential risks found in the scenario. Wherein lies the risk?
Classify each risk you've identified according to the type of loss that may occur: property, loss of use, liability, criminal/fraud, key person.
Choose two of the risks you've identified. What risk control techniques can be used or are being used to manage these two risks?
What questions would you ask to make sure you have thoroughly evaluated the risk associated with each scenario?