FAA Expands Safety Management Systems (SMS) Regulations in 2024: What You Need to Know

Morris Plains, NJ, October 14, 2024 (GLOBE NEWSWIRE) — One of the cornerstones of aviation safety is that it is not a state but rather a practice. How stakeholders manage security on an ongoing basis is critical. Of course, it’s not easy to maintain a constant focus on preventing injuries, property damage, and other negative events. This is one of the reasons why the concept of Safety Management System (SMS) was developed.

Recent FAA Rule Updates

This article covers recent U.S. Federal Aviation Administration (FAA) regulations and describes how safety management system (SMS) regulations increase safety. He also notes that having an SMS (particularly a mature program) presents aviation stakeholders in a favorable light to insurers, leading to increased insurability and potentially a program of more comprehensive insurance.

FAA expands texting regulations

Like many evolutionary changes, the aviation industry’s SMS program implementation journey began as a local solution (in this case, to meet the safety needs of flight operations) and attracted the attention of others aeronautical disciplines. Following the publication by the International Civil Aviation Organization (ICAO) of standards and recommended practices for SMS development, the marathon to implement these programs has begun on a global scale.

ICAO has defined an SMS as a systematic approach to safety management, including the necessary organizational structures, accountability, responsibilities, policies and procedures. Around the world, legislators and regulators established their basic expectations for SMS programs while the industry grappled with the challenges of their practical application.

Before issuing mandatory texting regulations, the FAA established voluntary programs that industry can adopt. These programs have provided opportunities to develop and evaluate SMS solutions and inform potential rulemaking. They involved airports, airline operators, maintenance providers and, later, designers and manufacturers.

In 2015, following rulemaking that included public and industry input, the FAA issued mandatory SMS regulations (14 CFR Part 5) with a three-year implementation period for those conducting operations under Part 121. At the same time, voluntary SMS program opportunities continued for other aviation organizations.

In 2023, the FAA added SMS requirements for certain airport certificate holders (14 CFR Part 139) to develop, implement, maintain and adhere to an airport safety management system. In 2024, the FAA expanded the applicability of mandatory SMS programs. The SMS requirements of aircraft manufacturers are now covered (14 CFR Part 21), as are those of parties conducting commuter and on-demand operations or passenger-carrying flights for hire or compensation (14 CFR Parts 135 and 91.147).

The story continues

FAA Administrator Mike Whitaker recently said, “Requiring more aviation organizations to implement a proactive approach to safety management will prevent accidents and save lives.” »

Possibilities of voluntary SMS and recognition

Importantly, the FAA continues to offer a voluntary pathway to aviation stakeholders who are not required to have an SMS but wish to be recognized for adopting the standard (14 CFR Part 5). Companies and operators who take the voluntary route present themselves in a positive light, allowing the insurance community to better assess the security situation of a risk.

The FAA states that some of the benefits of managing safety with a voluntary SMS include:¹

• Increases security by supporting a proactive and predictive method of security management to identify and resolve issues before they occur.

• Demonstrates that safety is a priority for recruiting and retaining high-caliber personnel and for strengthening an organization’s safety culture.

• Achieves cost savings through the ability to anticipate and prevent costly accidents.

• Improves data-driven decision making to prioritize resource allocation.

• Increases customer confidence in the certificate holder’s ability to operate securely and potentially increase new and repeat business.

• Improves safety communication by using common and consistent terminology within the organization and across the industry.

• Increases eligibility for certain contracts.

• 14 CFR Part 5 compliant SMS messages are recognized by the International Civil Aviation Organization.

Improving aviation safety through information sharing

The latest SMS regulations include an information sharing requirement (14 CFR 5.57), which pushes the industry to work together to identify and resolve potential security issues. Industry players are loudly calling for better sharing of safety information. Since 2007, U.S. airlines have had a data sharing program called ASIAS (Aviation Safety Information and Analysis Sharing), and it makes sense that others in the aviation industry would adopt a similar framework.

In issuing the §5.57 requirement, the FAA also described the limitations of this shared information and provided examples illustrating “how aviation organizations can comply with the sharing of hazard information in accordance with §5.57 without compromising commercial information or confidential personal, by: (1) identifying the interface person who could confront the danger or mitigate the risk; (2) confirm that the interface person contributes to the safety of the products or services provided by the aeronautical organization; and (3) remove any proprietary or confidential information other than hazard details from the report before sending it to the interface person.

In May 2024, Congress further strengthened the safeguards, expanding the limitation on disclosure of security information (49 USC 44735) to include reports, data or other information submitted “for any purpose related to the development and implementation of a safety management system, including a system required by regulations.

Future Aviation Success Requires Predictive Safety Behaviors

Updates to the FAA’s 2024 SMS regulations demonstrate that the organization continues to evolve its safety management activity toward predictive safety, focusing on capabilities to detect problems and pick up weak signals before incidents occur. This is underway in the historic aviation world with programs for airframe and engine health monitoring, aircraft and airport operations monitoring, and air traffic safety reporting.

These challenges occur in a proven ecosystem while, simultaneously, the FAA ensures that new technologies, such as Advanced Air Mobility, exploit predictive safety opportunities. There is much to consider and balance, but the FAA strives to combine predictive safety with traditional aviation and any new technologies being introduced.

Like the FAA, Global Aerospace recognizes the benefits of implementing a robust SMS, which includes the influence of a strong safety focus on insurance program considerations. This commitment aligns and is supported by our SM4 Aviation Safety Program and our library of safety-focused articles. We encourage all aviation stakeholders to take advantage of these resources as tools to more effectively manage safety.

Resources:
¹ https://www.faa.gov/faa-aviation-safety-outreach/safety-management-system

About Global Aerospace
Global Aerospace has a century of experience and a strong passion for providing aviation insurance solutions that protect industry stakeholders and enable the industry to thrive. Benefiting from the financial stability of one of the largest pools of capital in the world, we leverage innovative ideas, cutting-edge technology and powerful synergy among diverse team members to underwrite and process claims for the many risks facing our customers are faced with. Headquartered in the United Kingdom, we have offices in Canada, France, Germany, Switzerland and throughout the United States. Learn more at https://www.global-aero.com/

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