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A Conversation on Due Diligence – Global Aerospace Aviation Insurance

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By Louis A. Sorrentino III
CEO & Managing Director, Aviation & Marine Safety Solutions International (AvMaSSI)

Beyond Regulatory Compliance: Considerations for OEMs and Aircraft Operators

Using a quality management system (QMS) audit process1 is one of the best ways to determine an original equipment manufacturer’s (OEM’s) level of compliance with applicable regulations and whether it has moved beyond a prescriptive approach to addressing quality and safety. This method evaluates the organization’s performance against additional indicators such as corporate policy, procedures, processes, voluntary standards and best practices.

Luxury business jet with open door ready for passenger boarding

Applying the equally important and voluntary2 Safety Management System (SMS) elements to the quality program adds that much more insight into the quality and safety effectiveness of a company’s internal oversight and external due diligence activities.

Important Definitions

Let’s start with a few definitions. For the purposes of this article, a QMS is defined as an independent department or assigned individual within the larger organization that is empowered, resourced (trained) and authorized to evaluate the company’s adherence to established policies, client requirements and applicable regulations. Concurrently, the QMS ensures conformance to company policies and procedures, as well as industry standards and best practices.

If properly implemented, the QMS/SMS becomes the eyes and ears of senior leadership. It ensures that functional managers and employees are reporting correctly and that, from that initial report, hazards and incidents are being effectively analyzed and acted upon. Remember, in the role of a leader, it’s about trust and verification.

Due diligence is the systematic method to premptively analyze risk within a business or financial arrangement so that it can be addressed before an incident, accident or financial loss occurs. It is the exercise of care that a reasonable company or person is expected to take before…

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