Part 1: Unpredictable and malicious threats
Historically, the aviation industry has done a phenomenal job of managing operational risk through a sharp focus on safety and security. However, the risk postures facing the airline industry today have changed rapidly in several dimensions. The emerging nature, complexity, and sources of risk demonstrate that not all risks are created equally.
Traditional broad-based risk management strategies must be reconsidered to devise a more industry-centric, cost-effective, and targeted approach to risk management–a more strategic perspective. Once airline executives understand the true nature of these risk drivers, they can better evaluate the organization’s capacity for responding to them, including taking advantage of growth opportunities created by some risks.
This report will examine three areas of unpredictable and malicious threats, which have significant potential to create major harm for today’s airlines. These include:
- Cyber incidents and data breaches
- Insider threats and the risk from within
- Supply chain disruption (third-party and vendor threats)
Mitigating threats requires a significant investment in risk sensing and control technology, processes, and protocols. Done correctly, a well-articulated risk management approach, based on return on investment and supported by a proactive infrastructure, can be a differentiator for airlines and protect and enhance their reputation, brand, and future growth potential.