Risky business: Using enterprise risk management at an airport

Operating an airport is fraught with risks. Identifying, assessing and managing these risks should therefore be an important part of strategic planning. This paper outlines the key elements of enterprise risk management (ERM) and how it can be used by an airport. It describes both well-known, and less well known, exposures experienced by a major North American aviation facility and ranks these based on their likelihood and potential impact. The risks identified requiring immediate attention included problems with commercial airlines, terminal tenants, property taxes, government intervention, viral epidemics, inter-modal transportation and vehicle parking. The majority of the risks noted were financial or operating in nature. The most commonly identified concern related to major capital projects, while the activities of the airlines were also frequently mentioned. Of the 220 risks noted, 74 were considered to be above the risk tolerance threshold. The information in this paper can be used by airport operators to help identify, assess and mitigate the potentially negative effects of threats in their internal and external environment.