1. Rob Kella - Chief Risk Officer
Thank you to the sponsors including the Society and the Institute
Advantageous to follow several learned speakers - opportunity to update presentation to reflect their “words of wisdom”
Emphasise the “journey” concept and that risk solutions need to be tailored to the business, its strategies, culture and management decision-making processes
Provide overview of presentation:
The business, risk and governance frameworks and Risk and Assurance
Supporting case studies - with both a safety management and risk management orientation
The Simplicity of Aviation Safety Management Putting Practical Ideas Into Practice - Airline Risk Management Bringing Risk and Assurance Together
Rob Kella - Chief Risk Officer

2. The Group - “Sum of the Parts”
Qantas Airlines
Qantas
Engineering
People
Jetstar
Services
(Airports and
Catering)
Finance
& Strategy
We’re still a public company - we haven’t been privatised
Outline the segmented nature of the Group - a collection of aviation related businesses own their own pathways - some are being re-positioned for future growth, others are experiencing exceptional growth currently
Additional businesses on the horizon including:
Qantas Holidays
Qantas Flight Training
Fleetco, etc
Development might take these businesses from segmentation, to corporatisation, through a de-merger process to an eventual IPO - no set formula - each business will be separately considered in determining their respective development paths
Multiple AOCs in the Group - embedded in Qantas, Jetstar and Qantas Freight Enterprises
Loyalty
Qantas
Freight Enterprises
Risk and
Assurance

3. Group Governance and Risk Management Model
Operations
Strategic
Financial
Segment Risk and Assurance Personnel
Risk and Assurance
Risk Review Group
Segment
Board of Directors
Board Safety, Environment and Security Committee
Board Audit Committee
Safety and
Environment
Mgmt Committee
Executive General Manager
“Scope to Reach Across the Group”
Segment Risk/Safety Committees
Ongoing Management of Safety and Risks
Safety and Risk Leadership Committee (Exco)
Outline both the Group (strategic direction, monitoring and oversight) and Segment (emphasis on pushing responsibility/accountability for operational risk to the Segments) views
Safety and risk concepts aligned on “same page”
Point out the linking/enabling position of Risk and Assurance as part of this framework (working with Executive Management, Segment Management and the Board Committees with a focus on risk and safety)
Framework built on the Group’s existing risk model of:
Strategic risk (owned by the Executive)
Financial risk (primarily owned by the CFO)
Operations risk (as the cornerstone/foundation of the model, principally owned by the Segments)

4. Aviation Medical Services
Established in March 2006
Logical synergies across Risk and Assurance
Aviation and occupational medical services
Medical advice (employees and passengers)
Environmental compliance and risk management
Environmental improvement programs (inclusive of fuel and non-fuel initiatives)
Internal compliance and control
Corporate governance
Occupational safety compliance and risk mgmt
People safety improvement program
Risk management advice, consulting and reporting
Risk and assurance improvement program
Aviation safety compliance and risk management
Oversight of Group aviation safety standards
Security compliance and risk mgmt
Group security services
Business resilience
Risk and Assurance
Chief Risk Officer
Aviation Medical Services
Internal Audit
Risk
Safety
Security
Occupational
Health and
Environment
and Fuel
Conservation
Outline what Risk and Assurance comprises:
Technical skills built around the key operational risk areas of safety, security and the environment
Capacity and capability to provide both advisory and assurance related services
Provision of assurance relating to both specific technical areas as well as on Management’s application of the overall risk management model

5. Why? Increasing complexity of external risk environment
Continuous pressure to change - related impact on the risks of doing business
Management demand for more timely risk information
Increasing/changing demands from regulators; further compliance requirements
Re-alignment of governance models within Group
Leveraging safety and risk management expertise across Group

6. Objectives and Supporting Activities
Improve visibility and awareness of risk
Sponsor/manage risk and assurance improvement initiatives across business
through:
Oversighting operations
Supporting Segments in complying with regulations and managing regulatory relationships
Providing timely risk analysis/reporting/advisory and assurance services

7. Supporting Safety Management - Flight Ops
Board Safety Committee
Risk and Assurance Representation
Qantas Airlines Safety Committee
Management Safety Review Committee (Flight Operations)
Escalate Risks & Trends
Type Committees (Each Fleet)
Common Information Source (AQD)
Case Study 1

8. Measuring Safety Management Performance
Input
Process
Output
Outcome
Measure overall riskiness of operating environment
Measure quality and effectiveness of safety management systems
Measure safety activity
Measure safety outcomes
Case Study 1

9. Measuring Safety Management Performance
Case Study 1

10. Fieldwork and Reporting
Ongoing Transformation Challenge
From
Decision Support
Percentage Effort To
Protect/Create Value
Value for Money 50
Fieldwork and Reporting 50
2005/06
2008/09
Case Study 2

11. Current Improvement Initiatives
Align/re-engineer R&A activities (risk assessments, investigations, audits, etc)
Work with Segments to re-align/re-engineer their related activities
Roll out information system strategy
Further redesign advisory services by leveraging risk information
Utilise integrated risk information to work with regulators (increase awareness of risk management system); minimise potential for unnecessary regulation
Case Study 2

12. Integrated Management System - Overall Design
Where?
Integrated Management System (Control Framework)
Why?
KRI Scorecard
(Lead/Lag)
Review Processes
Business Behaviours,
Business Processes and Infrastructure
Monitoring and Analysis
Management Review
Level of Detail
Escalation
Business
Performance
Data
Capture
Incidents
Risk Assessments
Policy/
Regulations
Investigations
Audits
Case Study 2

13. Leveraging SMS Successes
Established SMS Process Elements
IMS Process Elements
Management review embedded in AOCs
Safety performance indicators developed
Mature safety information systems (eg, AQD)
Safety systems audit and safety investigation methodology and skills
Embedded operational risk assessment process
Expand scope to other operational areas across Group
Migrate to a broader risk control framework
Expand to provide interim/prototype solutions (eg, action tracking)
Develop common audit and investigation models
Integrate with a broader, common risk assessment model
Case Study 2

14. Ongoing Success Factors
Continued support/advocacy from the top
Organisational positioning
Culture that empowers safety and risk ownership
Organisation that embraces change
Culture that empowers sharing
Structured/disciplined processes