Risk-Based Decision Making (RBDM) Strategic initiative of the Administrator Encourage Data-Sharing between FAA and Industry Performance-based oversight methodology Integrated and collaborative approach to system safety oversight

RBDM When fully implemented, the RBDM Initiative will enable the FAA to make smarter, risk-based decisions to improve safety in the aviation system.

RBDM Common Themes Apply SMS-like principles to certificate holders Certificate holders identify and mitigate risks within their organizations that could have an adverse impact on safety (although those risks may not constitute regulatory noncompliance). Certificate holders encouraged to share data with FAA without fear of enforcement action. FAA allocates resources to higher risk certificate holders (e.g., certificate holders that are unwilling to adopt RDBM).

FAA Compliance Philosophy Order “To promote the highest level of safety and compliance with regulatory standards, the FAA is implementing Safety Management Constructs based on comprehensive safety data sharing between the FAA and the aviation community. To foster this open and transparent exchange of data, the FAA believes that its compliance philosophy, supported by an established safety culture, is instrumental in ensuring both compliance with regulations and the identification of hazards and management of risk.”

FAA Compliance Philosophy Order “To promote the highest level of safety and compliance with regulatory standards, the FAA is implementing Safety Management Constructs based on comprehensive safety data sharing between the FAA and the aviation community. To foster this open and transparent exchange of data, the FAA believes that its compliance philosophy, supported by an established safety culture, is instrumental in ensuring both compliance with regulations and the identification of hazards and management of risk.”

FAA Compliance Philosophy Order Subparagraph 4.f. Matters involving reckless, intentional, or unacceptable risk to safety pose the highest safety risk and warrant enforcement. Subparagraph 4.g. Matters involving competence or qualification of certificate, license, or permit holders will be addressed with appropriate remedial measures, which might include retraining or enforcement. Subparagraph 4.h. Regulatory violations involving law enforcement-related activities may be addressed with enforcement. In addition, legal enforcement will be taken when required by law.

Approaches to compliance Informal Action (non-certificated shippers of hazmat) Compliance Action Administrative Action Legal Enforcement Action

Compliance Action No legal enforcement action triggers present. Person is willing and able to comply. Compliance action is the appropriate response where the inspector has discretion to make such determination.

Legal Enforcement Action is Required (1) Intentional Conduct (2) Reckless Conduct (3) Failure to Complete Corrective Action (4) Conduct Creating or Threatening to Create an Unacceptable Risk to Safety (5) Legal Enforcement Required by Law

Legal Enforcement Action is Required (5) Legal Enforcement Required by Law The express terms of a statute or regulation require the initiation of a legal enforcement action. e.g., 49 U.S.C. § 44710 – Revocation of airman certificates for controlled substance violations 49 U.S.C. § 44726 – Denial and revocation of certificate for counterfeit parts violations

Question of Competency or Qualification Legal Enforcement Action Required If lack of qualification is evidenced by a lack of the care, judgment, and responsibility to hold that certificate, FAA personnel refer the matter to the Office of the Chief Counsel for it to evaluate and initiate legal enforcement action.

Question of Competency or Qualification Compliance or Administrative Action If an issue of competence or qualification relates to a certificate holder’s skills or ability to meet technical eligibility requirements, FAA personnel may take either compliance or administrative action provided such action ensures that the certificate holder is in full compliance with the requisite qualification or competence standards when exercising the privileges of the certificate.

Legal Enforcement Action is Discretionary Repeated Noncompliance May be addressed with: Compliance Action Administrative Action Or referring the matter to AGC to initiate legal enforcement action FAA personnel should consider a progressive response to repeated noncompliance. E.g., Where a compliance action did not correct the noncompliance, administrative action or legal enforcement action might be the appropriate response.

Legal Enforcement Action is Discretionary Accurate data FAA personnel may take compliance action, administrative action, or recommend legal enforcement action in accordance with program office policy and guidance as it pertains to evaluating the cause and impact of noncompliant safety management data systems and processes.

Legal Enforcement Action is Discretionary Accurate data (continued) However, statutory or regulatory noncompliance related to inaccurate or unreliable data resulting from falsification or other intentional misconduct always is referred to the AGC for initiation of a legal enforcement action.

IIMPACT OF NEW PHILOSOPHY Calendar Year 2011- 75 formal enforcement cases referred by Flight Standards Calendar Year 2016-26 formal enforcement cases referred by Flight Standards Does not include Drug Abatement or Hazardous Materials Cases 65% reduction in enforcement action