Risk management is embedded into strategic decision-making and resource allocation within CATSA, thereby allowing the organization to make informed decisions at the corporate and operational levels. CATSA recognizes the principle of risk-reward, and manages its risks knowing that:
- The complete elimination of risk is not possible;
- Risk aversion is not the same as risk management; and
- Acceptance of risk can lead to positive outcomes for the organization.
CATSA’s overall risk attitude can be described as conservative and flexible.
Conservative
The organization generally focuses effort more heavily on the active management of medium, medium-high, and high risk, and the acceptance of low risk.
Flexible
CATSA’s environment is highly dynamic, and influenced by two key partners, namely Transport Canada and the Government of Canada more broadly. From a risk management perspective, the unique nature of CATSA’s environment requires flexibility and discretion in the application of risk attitude.
CATSA actively evaluates, manages and mitigates the following risks.
Mandated Services Risk
Detection capabilities and maintaining care and control of screening checkpoints
Due to the evolving nature of the aviation security threat environment, there is a risk that CATSA may not have the technology, threat and risk information, processes or human factor capability to detect all high risk threat items or new and emerging threats, and prevent screening circumventions at screening checkpoints. This may result in substantial consequences to the public and the aviation system. CATSA is continuously adapting its risk mitigation strategies and efforts, as a means to address the evolving aviation security risks and their potential impacts to mandated operations.
Capacity Risk
Adequacy of government funding
There is a risk that CATSA’s funding envelope may be insufficient due to cost increases, new requirements and/or government cost cutting initiatives.
CATSA staff capacity
There is a risk that CATSA’s current staff capacity, in certain areas, may be inadequate to sustain workloads and to support a healthy work environment resulting in employee dissatisfaction and a decrease in corporate performance over time.
Service Delivery Through Third Parties Risk
Legal and illegal labour disruption
Given CATSA’s third party service provider model, there is a risk that CATSA may have limited influence to prevent a legal labour disruption event, or to maintain service levels during an illegal labour disruption event initiated by the unionized screening officer workforce. Labour disruptions may result in longer wait times, increased complaints and harm to CATSA’s reputation.
Dependence on outsourced screening services, equipment maintenance services or major suppliers
As a result of a contractor no longer being able or willing to provide the agreed upon contracted services or goods, there is a risk that CATSA’s dependence on outsourced screening services, equipment maintenance services, or major suppliers may result in negative service delivery impacts.
Stakeholder Relations Risk
Reputational risk
There is a risk that CATSA may encounter events that it is not able to effectively manage, which may cause damage to its reputation with passengers and/or its partners, resulting in loss of public trust in CATSA and/or confidence in air transportation security.
Human Resources Risk
Employee recruitment and retention
Due to labour market conditions for talent or due to CATSA’s overall corporate human resources strategies, there is a risk that CATSA may experience challenges in recruiting and/or retaining key and/or specialized talent resulting in a potential loss of corporate memory and/or a decrease in overall corporate performance.
IT Risk
Cyber attacks on IT infrastructure
Due to the evolving nature of the cyber threat environment, there is a risk that cyber threatsand/or attacks may negatively impact CATSA’s IT infrastructure and/or compromise organizationally sensitive or secret information resulting in a loss of public confidence and potential damage to CATSA’s reputation.