Nov. 5, 2025
Safety risk management (SRM) is a core component of an effective safety management system (SMS), requiring an organization to identify hazards and associated risks, then mitigate those risks to “as low as reasonably possible.”
The most recent installment of NBAA’s Part 5 SMS for Small Operators series focuses on how SRM is achieved in four basic steps and uses examples of two distinct risks – thunderstorms and engine failure – to illustrate SRM. The four steps are as follows:
- Identify the system’s hazards and their associated risks.
- Mitigate the risks to as low as reasonably possible.
- Decide between the residual risk and hazard avoidance.
- Learn from the experience and collect data that is analyzed through the safety assurance process.
While the video is based on the FAA’s Part 5 Safety Management Systems, NBAA Safety Committee SMS Working Group Lead Amanda Ferraro, CEO of Aviation Safety Solutions, said it’s important to understand key differences between Part 5 and some common industry best practices, including those outlined in the International Standard for Business Aircraft Operators.
Those standards were originally built on the International Civil Aviation Organization (ICAO) SMS standards, though some organizations have revised their standards to address Part 5.
The differences stem from philosophical distinctions between the ICAO SMS standards and the FAA’s Part 5. ICAO refers to four pillars of SMS: safety policy, safety risk management, safety assurance and safety promotion, while the FAA considers SMS as an integrated system, which not only includes SMS standards but also components of a quality management system.
“Safety risk management is one of the key differences,” Ferraro said. “Part 5 has additional layers. It lives and breathes in your operation and integrates with your organization, including stakeholders and third-party vendors. The FAA is looking for inter-connected system analysis.”
The FAA’s Part 5 SMS requirement applies to Part 135 operators, Part 91.147 air tour operators that have a letter of authorization and aircraft manufacturers. These organizations have until May 28, 2027, to implement their SMS and submit a declaration of compliance statement.
Ferraro added that any Part 145 repair station with a European Aviation Safety Administration (EASA) approval must implement a Part 5 SMS by Dec. 31, 2025.
She cautioned regulated entities not to find an SMS manual template and simply add their company name to it.
“If an operator has legitimately tried to implement an SMS, the FAA will likely work with them. But if you just copy/paste into a template without additional effort, they can and probably will take action,” she added.
International Business Aviation Council Ltd.