This Is a Summary on the Risk Management Case Study of Air Canada

The airline industry is one of the largest global industries in the world. Airline companies in the airline industry have gone through challenging obstacles in the past decade. Many changes have occurred within the industry and increased regulations have driven up cost for the industry. The attacks on 9/11 left the industry in shock when planes were used in terrorist attacks in the United States. These attacks changed the mentality of the industry and shifted the focus towards safety. Safety was also a major concern in the industry with the breakout of SARS in 2003 and the H1N1 flu in 2009. The airlines had to ensure that public health and safety of the travelers were

impact of the identified risks to the organization based on key business drivers (loss of life, loss of

At the end all the risk are finance related, because the liability’s cost money and this will have an effect in the company’s earnings, so what is important is not only to try to avoid such events but also to be prepare in case they happen and have a plan, is like the saying “Hope for the best but be prepare for the worst”.

Risk is defined as the probability that a company will become insolvent and will not be able to meet its obligations when they become due for payment. The profitability versus

The Air Canada case contains a problem in the structure of the company regarding how they are sourcing in their supply chain, managing the risk, and growing the company while maintaining their core competencies. Based off the overall information in the reading, Air Canada seems to be making the correct steps in the success of their business. If you look at page 20 of the reading, Air Canada holds a good majority in the domestic, international, and even transborder market shares.

The WestJet case tells us about WestJet Airline, a start-up in 1996 serving five western Canadian cities and their services extended to more than 85 destinations in 18 countries by 2011. The CEO and executive team together contracted an accomplished and exceedingly effective CIO to execute a key move of code sharing and, numerous other strategic IT projects to enhance the competitiveness of WestJet. The new CIO was asked to evaluate the IT skills as a component of a corporate drive to get the upper hand by conveying advanced guest service. The CIO was of the view that IT was the key factor for the growth of WestJet and so formulated a governance model comprising of the restructuring of IT. However, it has been a difficult job for the

Air Canada’s early strategy was to grow the business, with minimal concern about their staff members and customers. Without any benefits or rewards their staff felt underappreciated. Their customers felt as though their feedback wasn’t being heard but in the eyes of Air Canada as long as their business was expanding, they were satisfied.

Many risk elements exist within Air Canada environment. They mention many risks, like catastrophic ones, but these are insured against. Other risks they insure are ones that do not occur often, but have heavy penalties. The operational risk that Air Canada accepts are the ones that happen often, but have a low impact compared to catastrophic ones. The risks that concern the airline the most are the quadrant one high frequency, high severity risks. These risks include fluctuations in fuel price, interest, exchange rates and stock price.

The case study by Munro and Khan (2013) indicates that IT has played a significant role to make the WestJet a remarkable success. WestJet started its function in 1996 with three uses Boeing 737-200 aircraft in five western Canadian Cities. However, by 2011, the airline boasted its activities reaching more than 90 Boeing Next-Generation 737 aircraft, 85 destinations in 18 countries and over nine thousand employees. It became “the second-largest carrier in Canada and ninth largest in North America. It described itself as a ‘high-value, low-fare airline’ with a corporate culture focused on delivering a ‘world-class guest experience’” (p. 1). The role of IT was brilliant is success of the

Basically operational risk means the possibility of incurring a loss due to inadequate or unsuccessful processes, employees and systems or external event. Apple has been emphasizing the importance of capital risk management focusing on continuity of operations, alongside with planning ahead for the future and the increasing reliance over cloud computing to enhance the resilience factor of systems.

Risk management is the term applied to a logical and systematic method of establishing the context, identifying, analyzing, evaluating, treating, monitoring and communicating risks associated with any activity, function or process in a way that will enable organizations to minimize losses and maximize opportunities. (Lecture notes)Risk Management is also described as 'all the things you need to do to make the future sufficiently certain'. (The NZ Society for Risk Management, 2001)

Tang (2006, cited by Diabat et al., p. 3040) divided risk into operational risks and disruption risks. Operational risks are associated with inherent uncertainties such as uncertain customer demand, uncertain supply, and uncertain cost, whereas disruption risks are associated with major disruptions caused by natural and man-made disasters

Risk management consorts with the assessment, detection and avoidance methods in order to minimize the adverse effects of risk on organizations. Risk management techniques compose of loss control, risk retention, risk avoidance and risk transfer. One project could potentially have numerous different risk management models throughout its lifecycle.

In enterprise risk management, a risk is defined as a possible event or circumstance that can have negative influences on the Enterprise in question. Its impact can be on the very existence, the resources (human and capital), the products and services, or the customers of the enterprise, as well as external impacts on society, markets, or the environment.

Aviation Cost Risk management safety is the implement of strategic management systems to the identification and identification, Understanding and monitoring of risk Aviation s safety. Administration systems are a comprehensive workers set of acts, procedures, regulations, strategic planning, and controls safety to include that measures to block and mitigate main aviation damage or accidents are in place in use, effective and successful this research by Ove and Oivind (2010) See Fig1.1