1. Safety Management Systems CAA Update

2. Scope  Background  Benefits  Policy development / RIS  NPRM  Advisory Circular  Sector engagement & participation  SMS Implementation  State Safety Programme (SSP) Design Delegation Holder’s Seminar Design Delegation Holder’s Seminar

3. Safety Management Systems  “SMS is a systematic approach to managing safety, including necessary organisation structures, accountabilities, policies and procedures” [ICAO]  SMS description Holistic Risk-based Data-driven Goes beyond compliance Tailored to operating environment Design Delegation Holder’s Seminar Design Delegation Holder’s Seminar

4. Benefits  Builds on quality management, and provides a framework for managing all safety-related processes  Hazards identified and risks managed before they impact safety / business  Avoid human and financial cost of negative safety event  Improved decision-making  Data-driven performance targets and monitoring provides basis for assessing and improving safety performance  SMS can be integrated with other systems  Foundation for a positive safety culture Design Delegation Holder’s Seminar Design Delegation Holder’s Seminar

5. Background  SMS and risk based oversight are now the cornerstones of ICAO regulatory philosophy  ICAO required States to implement SMS as of 01 January 2009  New Zealand aviation sector has solid foundation of Quality Management  Many participants have voluntarily adopted SMS  CAA has been developing SMS foundational requirements for 2 – 3 years  This work has, and will continue to be, informed by industry experience and the lessons learned by other regulators Design Delegation Holder’s Seminar Design Delegation Holder’s Seminar

6. Policy Development  Transport Rules Redesign Project Policy work done up front Must consider other options to Rules  Policy work CAA (with Castalia assistance) Industry consultation  Cabinet paper → Regulatory impact Statement (RIS)  Cabinet paper will propose a framework for consequential changes related to SMS (including Rules) Design Delegation Holder’s Seminar Design Delegation Holder’s Seminar

7. Rule Development  SMS will be implemented through series of amendments to CARs supported by a comprehensive single AC  SMS Rules will replace QA Rules  Rule amendments have been divided into three Groups  There will be a transition period for each Group  Voluntary adoption of SMS by participants in advance of Rule implementation is encouraged Design Delegation Holder’s Seminar Design Delegation Holder’s Seminar

8. Rule Development  Group 1 Part 119 – 121 & 125 139 145 (supporting 121/125 ops) 172  Group 3 Part19 137  Group 2 Part 119 – 135 141 145 (supporting other ops) 146 148 149 171/174/175 Design Delegation Holder’s Seminar Design Delegation Holder’s Seminar

9. NPRM Update  The Rule Project Working Group was instrumental in the creation of NPRM  NPRM is modeled off ICAO SMS  13 elements; 11 ICAO plus: Audit programme Management review  Subject to Cabinet approval of proposals, NPRM will be released for consultation (target August 2012) Design Delegation Holder’s Seminar Design Delegation Holder’s Seminar

10. ICAO SMS Elements Design Delegation Holder’s Seminar Design Delegation Holder’s Seminar

11. SMS Advisory Circular  Draft AC completed with Aerosafe assistance  AC will provide acceptable means of compliance with SMS Rules  Guidance material also included  Scalable for size and complexity  Tools and practices not prescribed  AC will be released for consultation – feedback is requested Design Delegation Holder’s Seminar Design Delegation Holder’s Seminar

12. Industry engagement  Industry participants have provided input to NPRM and AC (e.g. PWG)  Wider consultation on AC and NPRM  SMS promotion by CAA Forums Support materials Vector  Support and leadership by industry groups  Sharing of practices and experiences is encouraged Design Delegation Holder’s Seminar Design Delegation Holder’s Seminar

13. SMS Implementation  CAA personnel trained in SMS/risk (complete)  NPRM and AC development (complete)  Policy and RIS development (in progress)  Policy proposal to Cabinet (July/August 2012)  NPRM & AC for consultation (once policy / RIS accepted)  Final Rules signed and issued, transition period commences (est. last quarter 2012 calendar yr.)  Participants submit Exposition changes (SMS) to CAA for acceptance prior to Rule effective date  Rule effective (est. 2014) → CAA monitoring Design Delegation Holder’s Seminar Design Delegation Holder’s Seminar

14. State Safety Programme (SSP)  State framework to support SMS  SSP main components: State safety policy & objectives State safety risk management State safety assurance State safety promotion  Gap Analysis completed & submitted to ICAO  NZ already has many of requirements in place  Gaps will be addressed through CAA change programme (most underway) Design Delegation Holder’s Seminar Design Delegation Holder’s Seminar

15. SSP (cont’d) Key areas of work  SMS Rules (∆ risk management)  Risk-based monitoring  Safety performance targets for industry Descriptive rather than numerical  Effectiveness of interventions  Safety data collection, analysis and exchange (e.g. sector safety initiatives)  Regulatory Operating Model and Regulatory Tools Policy Design Delegation Holder’s Seminar Design Delegation Holder’s Seminar

16. Questions? Thank you Design Delegation Holder’s Seminar Design Delegation Holder’s Seminar