Boeing 737 MAX Crash: Lessons Learned and Risk Management Strategies

This report provides a comprehensive analysis of the Boeing 737 MAX aircraft crash, examining the lessons learned and offering recommendations to enhance enterprise risk management. The introduction defines risk management and sets the context by focusing on the accident, which resulted in significant loss of life. The main body delves into the key lessons, including the importance of independent escalation channels, independent safety oversight, employee communication monitoring, and the impact of regulatory affairs. The analysis highlights the communication failures and safety protocol deficiencies that contributed to the disaster. The report then presents detailed recommendations, such as tracking and scheduling aircraft maintenance, improving team workflow coordination, and ensuring proper performance instructions and compliance. These recommendations aim to prevent future accidents by emphasizing proactive problem-solving, clear communication, and adherence to safety regulations. The conclusion summarizes the technical errors and communication breakdowns and reiterates the importance of implementing the proposed recommendations to mitigate risks within the aviation industry. The report draws upon various academic sources to support its findings and recommendations.

BUSINESS FINANCE
Table of Contents

INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Lessons learnt from accident.............................................................................................................3
RECOMMENDATIONS............................................................................................................................5
REFERENCES......................................................................................................................................7

INTRODUCTION
Risk management is defined as managing risk associated with operations and other
functional responsibilities. This report is based on the case study of Boeing 737 max aircraft
crash. The accident could cause to death of almost 157 passengers. The case study has been
very famous. In this project different learning areas belong to this aircraft crash will be
discussed. What are the potential lessons learned from this accident will be projected in this
study. Different risk factors identified from the whole accident will be highlighted under this
project. Furthermore, the report will discuss about the necessary recommendations that can
further allow the management to overcome the damage of this type of aircraft crash. The aim
of the study is to demonstrate the different learning areas associated with the aircraft crash
and also to project the necessary recommendations that can overcome future realistic
accidents belong to same nature.
MAIN BODY
Lessons learnt from accident
The aircraft crash of Boeing 737 max has taught many lessons that can be projected in
many points. This is essential to learn the lesson from the aircraft crash is very important as it
allow the stakeholder to decide the future guidelines and technicality so that no more such
accidents are registered in future. Aircraft crash are especially very dangerous as it lead to so
many deaths of passengers that create a drastic change and also raise the question of safety
and security of passengers. All different lessons learn front the crash of the aircraft vehicle
Boeing 737 max can be projected in the following points.
Independent escalation channel
Boeing 737 max development team had an eye over the issue with the MCAS. Yes it
was unclear whether there was any reported mechanism existed for the team members to
report such an issue in order to overweight issue outside of the direct value chain. The
knowledge to the technical team related to the ultimately disastrous MCAS was already there
before the plan was actually delivered to the customer. Some of the technical staff members
were also ready to communicate with the top management of the company (Englehardt,
Werhane and Newton, 2021). The problem was that the technical staff communicated with
the business unit managers. They should have communicated with the superior authority
designated the respective duties and the senior managers who would like to hear about the

issue. The technical team communicated about the issue but the problem was in front of the
wrong authority. This is a clear mistake has been done in regards to the technical aspect of
the aircraft.
Independent safety oversight
Boeing 737 max lacked with the independent internal organisation charged who can
comment very the safety protocols used in the aircraft. The key issue identified after the
aircraft crash was occurred is that the independent safety check was not done over the
aircraft. For the huge aircraft like Boeing 737 max this was essential to ensure all the safety
protocols from the independent authority that has no personal interest. This was not ensured
by the management and higher authority of the company (Travica, 2020). The independent
authority would have look over the check on commercial business units such as development,
manufacturing, marketing and sales. This team of professional guide companies about all the
safety measures that aircraft should meet.
Employee communication monitoring
This is completely unclear whether the Being has a function of monitoring the
communication made by the employees with the senior management of the organisation. In
every big company this is a part of the system where the communiation made by the
employee with senior management and staff members is monitored so that not any important
update miss so easily (Marín, 2020). This is policy of majority of big companies that all
communication of employees and other employees of company will be done over the
company’s provided system or phones. This is predicted that there was not such a system was
actively working in the organisation. If this was done in a proper manner than the authority
that are responsible for taking actions against such an issues would have reacted earlier only
and this whole accident could have been eliminated.
Regulatory affair overweight
There are plenty of debates can be seen as to whether the FAA has fallen victim
related to so called regulatory capture. This is essential in context to risk management
protocols. The essential of the internal unit overseeing regulatory affairs is very crucial. This
is predicted that this was completely missing for the Boeing 737 max (Levin and Suhartono,
2019). This was noticed that in case of the Boeing 737 max there were plenty of misconduct
has been done on a technical aspect that also admitted by the senor authority of the aircraft.

This is essential in context to the technical aspect to mitigate all different essential
requirements related to the aircraft.
The above mentioned issues were highlighted in context to the Boeing 737 max crash.
All the projected aspects are the major issue that the aircraft was associated with. In context
to the aircraft this is completely dangerous to overshadow any of the technical aspect but i
case of the Boeing 737 max it was completely avoided by the management that could become
a huge cost for the management of the Boeing 737 max (Scott, 2019).
RECOMMENDATIONS
In order to avoid conditions like this where situations will turn words and recommendations
that are to be followed. they are as follows:
Track and schedule aircraft maintenance: prevention must be carry forwarded where the
maintenance of the aviation industry will have to be taken care about because in doing so the
servicing as well as the kind of complaint that are in regard to the aircraft can be known
(Hertati and et.al, 2020). The maintenance processes with regard to aircraft are to be
regulated every now and then because to run efficiently it is a recommended aspect. Most of
the insurance will happen because information cannot be quickly delivered to the authorities.
The aircraft maintenance management software will have to be incubated such that they can
be in contact with proactive problem solving criteria. Work orders must be generated such
that the maintenance software will be inhibited by the authorities immediately. Maintenance
is an essential factor that is to be dealt in an aviation industry. Without proper maintenance
their craft cannot be scheduled with a ride. proper functioning of the aircraft will have to be
ensured before allowing it to be present on the runway. The maintenance will also be linked
to the safety and the regulations that are inhibited by the industry. It is not until when the
aircraft is properly insured with all the possibilities of moving ahead with the right that the
authorities will have to permit the craft to enter on the runway (Klopotan and et.al, 2018).
Co-ordinate with Team workflow: most of the issues with regard to aircraft occur because
of the improper coordination between the team. Coordination is a necessary aspect that is to
be carry forwarded between the teams in order to avoid negotiations as well as when there is
a kind of difficulty that is arising with the performance of aircraft then they can communicate
easily. There are certain critical circumstances in the aviation industry where people will have
to potentially put forth all their strategies in order to generate safety and security to the
passengers as well as the aircraft maintenance (Laktionova and et.al, 2017). Incidents take
place because of the gap in communication between the officials and this gap will have to be
minimised by developing the technical cadre of the aviation industry. The maintenance with
regard to the clear communication processes will have to be inhibited such that the floor with
which the aviation industry is working in terms of managing as well as assigning order and
tracking operations that will be inhibited. It is not until when the team co-ordinate with each
other that they will get to know all the ideologies as well as the strategies that are
incorporated upon carrying an aircraft.

Performing instructions: Performance will be based on how far the people will take
instructions that are necessary to be inculcated while dealing with aircraft fullstop there are
certain incidents that will take place with regard to aircraft without proper knowledge
regarding the technical staff and sometimes that might also be related to insufficient
knowledge regarding operations to be dealt with. Before handling and aircraft the authorities
will have to properly trained and will have to provide instructions to the candidates at a
dealing with. This is to minimise issues that are raising as a result of the choices that are
made by the professionals. Set of instructions will have to be provided and will have to be
ensured by the team such that they will co-operate with the choices as well as move ahead
with the operations. when it comes to Aviation industry the inspection with regard to the
compliance as well as a optimising inspection will have to be carry forwarded such that the
concern that are in regard to the aircraft can be known. This must be on real facts to
accomplish where the regulations that are in regards to the FAA and ICAI will therefore be
initiated (Postula and Raczkowski, 2020). It is also one of the most prominent way to ensure
compliance towards the aircraft. The regulations will have to be uploaded in the form of PDF
using the software which is aircraft management software like that of Fleetio. Professionals in
this regard will be a preventive shield for the aircraft maintenance. the orders as well as that
with regard to efforts remains therefore the and compliant. Instructions with regard to the
paper kind of paper of methods processes will have to be inhibited every now and then such
that the results that are retained by the proper analysis will therefore be time-consuming.
Aircraft maintenance management software that is installed will help the proof to
communicate with each other in regard to the operations of the aircraft. The inspirations with
regard to this particular software can also be quickly performed through an application that is
available in mobile (Chang and et.al, 2020). If it all there is a discrepancy or any issue that is
occurring at an instance that will also be reminded by a real time notification and the team
can quickly resolve the issues.
CONCLUSION
The Boeing 737 max got crashed due to the technical error. This is significantly
projected that the technical error or fault in the aircraft becomes the reason why the plan got
crashed. The technical team also communicated with the senior authority of some other
department that is not supposed to look after all the issues. This is coordinated and
communicated in the entire study. The report concludes upon explaining the
recommendations which are to be inhibited in the organisation such that all the technical
errors can be minimised. When there are technical errors in the aircraft that will definitely
lead to accidental situations and that might also go worse. The set of recommendations that
are included in this report are packed and schedule aircraft maintenance which are essential to

provide the maintenance criteria which is to co-ordinate with the team as well as the
importance of coordinating put forth in the report. the report also explains that aviation
industry is a large sector and every technical detail will have to be implemented such that any
accident prone situations can be limited by measures.
REFERENCES
Books and Journals
Englehardt, E., Werhane, P. H. and Newton, L. H., 2021. Leadership, engineering and ethical
clashes at Boeing. Science and engineering ethics. 27(1). pp.1-17.
Travica, B., 2020. Mediating Realities: A Case of the Boeing 737 MAX. Informing
Science, 23.
Marín, R. E., 2020. El Boeing 737 MAX 8: Apología y performatividad. Ceiba. pp.47-66.
Levin, A. and Suhartono, H., 2019. Pilot Who Hitched a Ride Saved Lion Air 737 Day
Before Deadly Crash. Bloomberg Business (20th March 2019). 11.

Scott, B., 2019. How companies like Boeing can win trust.
Hertati and et.al, 2020. The Effects of Economic Crisis on Business Finance. International
Journal of Economics and Financial Issues. 10(3). pp.236-244.
Klopotan and et.al, 2018. Early warning system in business, finance, and economics:
Bibliometric and topic analysis. International Journal of Engineering Business
Management. 10. p.1847979018797013.
Laktionova and et.al, 2017. Transformation of the organization and management of small and
medium-sized business' finance. Finansovaya analitika: problemy i resheniya=
Financial Analytics: Science and Experience. 10(7). pp.767-789.
Postula and Raczkowski, 2020. The Impact of Public Finance Management on Sustainable
Development and Competitiveness in EU Member States. Journal of
Competitiveness 12(1). p.125.
Chang and et.al, 2020. Risk and financial management of COVID-19 in business, economics
and finance.