Safety and Risk Management: Boeing Case Study and Analysis Report

This report delves into the crucial aspects of safety and risk management within the aviation industry, emphasizing its impact on organizational development, employee satisfaction, and product safety. The analysis highlights the importance of implementing effective safety and risk management measures to identify and mitigate potential hazards, as exemplified by the Federal Aviation Administration (FAA) guidelines. The report uses Boeing as a case study, examining the company's corporate risk management failures, particularly concerning the 737 Max aircraft, where leadership issues and inadequate risk assessment led to tragic outcomes. It underscores the significance of ethical practices, effective communication, and stringent quality control in manufacturing processes to ensure the safety of both employees and customers. The report concludes with a risk assessment at Boeing, outlining ten steps to effectively eliminate issues and achieve organizational goals, emphasizing the need for continuous improvement and proactive risk management strategies.

SAFETY AND RISK MANAGEMENT
STUDENT DETAILS
JANUARY 1, 2020

SFETY AND RISK MANAGEMENT 1
Safety and Risk Management
The organisations operating within the industry requires to focus on the safety and risk
management within the organisation. The concept is focused on analysing any issues within
the organisation that may result in developing any health or safety issue for the employees
within the organisation, as the employees are an important asset or the organisation,
therefore, it is required that the organisation focus on ensuring that effective safety and risk
management measures are being taken within the organisation so that such risk and issues can
be identified and eliminated from the business environment (Fernández-Muñiz, et al., 2014).
Safety and risk management has a positive impact on the organisational development as it
results in improving the employee satisfaction within the organisation resulting in employee
retention within the organisation. Also, the safety and risk management within the
organisation is focused on promoting the organisation’s internal safety along with ensuring
the safety of the product or the service that is being provided to the customers within the
industry. Also, implementing the safety and risk management within the organisation
improves the organisational culture and promotes the organisation performance within the
industry (Abuzarqa, 2019).
Federal Aviation Administration has defined that the risk management is required to be
implemented within the organisations and are required to ensure that the organisations are
focusing on the identifying the risk hazards, evaluating the negative impact from those
hazards and taking steps to reduce the chance of the occurrence of the risk within the business
environment. FAA has introduced tools to identify and manage the risk within the aircraft
and ensure that it is safe and secure for the customers (FAA, 2019).
Boeing has encountered with such an organisational corporate risk which resulted in creating
a negative image for the organisation’s products within the industry. Boeing faced a
leadership issue due to which the risk and safety measures within the organisation were
overlooked and resulted in the crash of the aircraft produced by the organisation. Boeing
introduced an advanced software within its aircraft but failed to analyse the risk and safety
factor within the aircraft and neglected the training requirements for the pilots as well as the
flight operators (Campbell, 2019).
The organisation required to focus on effectively analysing the risk involved in the
introduction of the software within the aircraft and the training requirements so that the issue

SFETY AND RISK MANAGEMENT 2
can be eliminated. The issue within the aircraft was identified after the crash, which reflected
the organisational inefficiency to analyse the factors that were involved in the situation. The
analysis of the incident identified that there was a defect within the software implemented
within the aircraft also the pilots were not fully aware of the working of the software due to
which they failed to control the aircraft and it resulted in a plane crash and the loss of lives.
The safety and risk measures are an important factor within the aviation industry as the
internal factors influence the health and safety of the employees whereas ensuring the product
safety factors are required to ensure that the customers or the passengers are safe during the
journey (Langewiesche, 2019).

SFETY AND RISK MANAGEMENT 3
References
Abuzarqa, R., 2019. The Relationship Between Organizational Culture, Risk Management
And Organizational Performance. Cross-Cultural Management Journal, 21(1), pp. 13-20.
Campbell, D., 2019. The many human errors that brought down the Boeing 737 Max.
[Online]
Available at: https://www.theverge.com/2019/5/2/18518176/boeing-737-max-crash-
problems-human-error-mcas-faa
[Accessed 15 March 2020].
FAA, 2019. Introduction to Safety Risk Management. [Online]
Available at: https://www.faa.gov/news/safety_briefing/2019/media/SE_Topic_19-01.pdf
[Accessed 15 March 2020].
Fernández-Muñiz, B., Montes-Peón, J. M. & Vázquez-Ordás, C. J., 2014. Safety leadership,
risk management and safety performance in Spanish firms. Safety Science, Volume 70, pp.
295-307.
Langewiesche, W., 2019. What Really Brought Down the Boeing 737 Max?. [Online]
Available at: https://www.nytimes.com/2019/09/18/magazine/boeing-737-max-crashes.html
[Accessed 15 March 2020].

SFETY AND RISK MANAGEMENT 4
Appendix
Risk Assessment at Boeing
1. Boeing is an ethical organisation and has established an effective and competitive
position within the industry, also the aircrafts manufactured by Boeing is used by
most of the airline operators. The risk management at Boeing should be focused on
the ten steps guide so that such issues can be effectively eliminated from the business
environment.
2. Boeing should focus on identifying the issues within the organisation and the impact
of the risk within the organisation.
3. The management should focus on ensuring that the ethical guidelines developed by
the management are being followed during the manufacturing process.
4. Ensuring effective communication with the organisational workforce so that the
activities within the organisation can be controlled effectively.
5. Boeing is focused on manufacturing as well as procuring of the parts required within
the manufacturing of the aircraft. As the quality of the aircraft depends upon the
quality of materials that are being used in the manufacturing of the aircraft.
6. Depending upon the analysis at the production plant the manufacturer is required to
focus upon analysing the effectiveness of the production process and ensure that the
activities are being ensured as per planned and the safety is being ensured.
7. Boeing organisational goal is to provide quality services and to ensure that ethical
practices are being conducted within the organisation, therefore it is required that such
activities are being conducted effectively within the organisation.
8. Also, during the process of risk management, the organisation is required to focus on
the issues within the industry and accordingly develop strategies to minimize risk
within the industry.
9. The organisation is required to focus on developing effective strategies so that
effective risk management can be developed so that any issues within the organisation
can be avoided and the organisational goals can be achieved.
10. Also, it is required that Boeing focus on effectively focusing on ensuring that the risk
management program is effectively ensured throughout the organisation and the
process within the organisation.