Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697726011166.pdf (Fiji)
LIST OF WITNESSES WRITTEN EVIDENCE 2018 Audit Report on Government Commercial Companies, Commercial Statutory Authorities and Other Entities No.

Witnesses Fiji Development Bank/FDB Nominees Limited Fiji Broadcasting Corporation Limited 1.

Pacific Fishing Company Limited 2.

Airports Fiji Limited 3.

Copra Millers of Fiji 4.

5.

6.

Post Fiji Limited 7.

Energy Fiji Limited 8.

Housing Authority of Fiji 9.

Fiji Rice Limited 10.

Yaqara Pastoral Company Limited Page No.


2 16 225 264 267 327 328 335 338 347 PAFCO RESPONSE 2018 Audit Report on Government Commercial Companies, Commercial Statutory Authorities and Other Entities SECTION 6.1: PACIFIC FISHING COMPANY LIMITED OTHER SIGNIFICANT MATTERS Processing Plant not Utilized to full Potential 1.

2.

3.

Please provide update on the initiative that the company mentioned it was considering in regards to production of single cooked Tuna for high end customer in the US Market?
This was a trial product processed for a customer who is a food chain distributor in the US.

One 20FT container of the product has been shipped to the customer.

The customer has advised that the product has been well accepted by their assessment team and they are now marketing this product.

Has the Company put in place the Risk Management Policy?

Please provide a copy to the Committee?

A risk management policy is now in place.

Is there an Audit Committee within the Board?


With the recent appointment of 2 new Directors, a audit committee has been appointed.

SUSTAINABLE DEVELOPMENT GOALS (SDGS) Pacific Fishing Company Pte Ltd (PAFCO) is part of the Fisheries Sector as stated in the National Development Plan.

The Company process canned Tuna products for the local consumers.

Canned Tuna is a rich and cheaper source of protein and is consumed by many households.
Fish meal, which is a by-product of the Tuna process is used in the manufacture of various types of poultry and other feed which is used by local producers.

The company has focussed on the value adding and has plans in place to increase its canned product variety and canning capacity.

1.
1.

Describe briefly, the general level of awareness by the staff members of your Department, of Fiji’s 5 years & 20 years National Development Plan, the 2030 Agenda, the Sustainable Development Goals (SDGs) and the SAMOA Pathway?

2.
2.

Describe the mechanism, in any, currently in place in your Department to enhance awareness of your staff members, of the alignment between the national development priorities, as per the Fiji’s 5years & 20years National Development Plan, with the SDGs and its targets and indicators?

3.

Describe how your Department monitor and report on the progress of the implementation of Fiji’s 5years & 20years National Development Plan and of the SDGs under your responsibility?

4.
4.

Is your Department a part or member of an inter- ministerial/department co-ordination mechanism that plan, monitor and evaluate the progress of the implementation of the National Development Plan and the SDGs under your responsibility?

inter-agency or If yes: a) How often does it meet?

b) What aspects of its function can it be improved?

If no: c) Do you see the need for such a mechanism?

5.
5.

Do you think your Department is sufficiently equipped to ensure an integrated and coordinated decision making process for SDGs implementation and for strategic planning?

6.

From your perspective, what are or ought to be the roles/functions of the lead government agency for coordinating the SDG implementation, and (b) how have these roles/functions been institutionalized?

7.
7.

From your best recollection, what steps has the Fiji Government taken so far to update or review its institutional setup 2020 PAFCO RISK MANAGEMENT POLICY This Management Risk Policy stipulates a guideline on how to identify potential hazards and risk assessments and controls.
Table of Contents 1.0 Overview...............................................................................................3 2.0 Purpose ................................................................................................3 3.0 Principles ................................................................................................3 3.1 Definitions ..............................................................................................4 3.2 Definition of a risk management policy ..................................................4 4.0 Scope .......................................................................................................5 5.0 Risk Governance ......................................................................................5 6.0 Risk Management Process ......................................................................6 7.0 Integration with other systems and processes .......................................6 8.0 Risk Categories ..........................................................................................6 9.0 Risk Register .............................................................................................6 10.
Risk Reporting ...........................................................................................6 11.
Risk Management Performance ...............................................................6 12.0 Risk Appetite .............................................................................................6 13.0 Review and approval ................................................................................6 14.0 References and related documents ..........................................................7 Annex I ....................................................................................................................8 Overview The Pacific Fishing Company Risk Management Policy (RMP) is the underpinning foundation of our core beliefs, values and corporate culture which guides our decisions and actions.
This policy sets out PAFCO’s approach to enable consistent management of risks and potential hazards across the business.

PAFCO faces a wide range of uncertainties which we must understand and manage so that we can achieve our strategic objectives.

These uncertainties are potential hazards and risks and if not controlled it has negative impact on PAFCO’s progress and future business direction.
Risks are present in all PAFCO’s activities and each decision made, or action taken incorporates some elements of risk and has an impact on PAFCO’s performance (whether safety, financial, operational or reputational).

The successful management of these risks across all Divisions and levels, specific functions, projects and activities increases the likelihood that PAFCO will achieve its strategic objectives and key performance indicators.
Specifically, effective management of risk will enable PAFCO to achieve its vision and strategic objectives (PAFCO’s FY18 Mission) as follows: a) Become the most efficient producer of quality tuna products regionally.

b) Provide a healthy workforce and safe and hygienic workplace.

c) Conform to International Standards.

d) Comply with local & international regulatory obligations.
e) Ensure that our activities are environmentally friendly and sustainable and f) Remain an equal opportunity employer in Ovalau and Lomaiviti province.

2.0 Purpose The purpose of the RMP is to provide guidance in managing risk to support the achievement of strategic plan, corporate objectives, protect staff and business assets and ensure financial sustainability.

3.0 Principles PAFCO Management is committed to fully implement this policy across all levels of management.
The following principles are as follows: a) Everyone at PAFCO is responsible for the effective management of risk.

b) Risk management creates and protects value and is an essential element of the PAFCO’s overall governance.

c) Application of risk management is consistently and systematically the basis in all divisions, group functions, programs and projects.
d) PAFCO will adequately apply resource risk management activities in all functional roles e) PAFCO will ensure that all employees have necessary training, skills and assistance to undertake effective risk management.

f) PAFCO will use the best available information to regularly monitor and report on the status of risk faced.

g) PAFCO will be dynamic, interactive and responsive in its approach to change.
This approach is based on the process outlined in ISO 31000:2009 Standard: Risk Management – Principles & Guidelines.

3.1 Definitions Based on the ISO 31000 Risk Management Standards i. ii.

iii.

iv.

v. vi.

vii.

viii.

ix.

x. xi.

Risk: effect of uncertainty on objectives and an effect is a positive or negative deviation from what is expected.

Risk Assessment: is a process that is, in turn, made up of three processes: risk identification, risk analysis, and risk evaluation.
Likelihood: is the chance that something might happen.

Likelihood can be defined, determined, or measured objectively or subjectively and can be expressed either qualitatively or quantitatively (using mathematics).

Consequence: the outcome of an event and influences objectives.

A single event can generate a range of consequences which can have both positive and negative effects on objectives.

Initial consequences can also escalate through knock-on effects.
Risk appetite: Level and nature of risk that is acceptable.

Risk management: a coordinated set of activities and methods that is used to direct an organization and to control the many risks that can affect its ability to achieve objectives Residual Risk: The risk left over after you’ve implemented a risk treatment option.

It’s the risk remaining after you’ve reduced the risk, removed the source of the risk, modified the consequences, changed the probabilities, transferred the risk, or retained the risk.
Inherent Impact – The impact that the event would have on the organization if it occurred and there were no controls in place.

Inherent Likelihood – The likelihood of the event occurring if there were no controls in place.

Residual Impact – The impact that the event would have on the organization if it occurred with the current control environment.
(This includes Insurance, preventive and detective controls and other risk treatments) Residual Likelihood – The likelihood of the event occurring in the current control environment.
(This includes Insurance, preventive and detective controls and other risk treatments) 3.2 Definition of a Risk Management Policy The success of risk management at PAFCO depends on the effective implementation of the risk management framework that provides guidance on the approach and procedures by which risk is managed throughout the organization.
“A risk management framework is a set of components that provide the foundations and organizational arrangements for designing, implementing, monitoring, reviewing and continually improving risk management throughout the organization.” ISO 31000:2009, Risk management – principles and guidelines PAFCO’s Risk Management Framework is described through two documents: a) PAFCO’s Risk Management Framework Policy (this document) articulates PAFCO’s mandate and commitment to risk management.
b) PAFCO’s Risk Management Standard - Describes the design and implementation activities of the framework, including definition of risk related roles and accountabilities.

4.0 Scope This policy applies to all PAFCO activities.

It forms part of PAFCO’s Governance Framework that applies to all employees, contractors and volunteers.

5.0 Risk Governance Table 1.0 below stipulates the following responsibilities and accountabilities.
Table 1.0: Responsibilities & Accountabilities Board Audit Committee and Risk Provides policy, oversight and review of risk management  Overseas regular review of risk management activities.

 Monitor effectiveness of risk management processes and Managers recommending improvements.

 Review status reports and risk registered (new risks and ranking of existing risks).

 Verify and confirm reported “Actions.

 Continuously improving risk management policy, strategy and supporting framework.
 Ensure staff in their business units comply with the risk management policy and foster a culture where risks can be identified and controlled.

 Update the CEO regarding Policies and procedures.

 Ensure integration in risk management in daily processes.

 Maintaining risk register, manage and identify/report risk.

 Review and endorse Risk status reports ensuring tasks are addressed as planned.

 Provide progress of existing risks and identifying potential new risks as identified.
 Retain all documentation (record of options, action taken, decisions etc.)

as this supports the reason for decisions and is essential when reviewing risks.

 Facilitate the development and implementation of the Risk Management System.

 Review and reporting of the Risk Management system.

 Compile a consolidated risk management report with comments and recommendations; and  Provide support and recommendations to the CEO regarding implementation of the Risk Management System.
Staff and Contractors  Comply with risk management policies and procedures; and  Report risk and risk creators 6.0 Risk Management Process When undertaking a risk management process the following steps must be taken: 1) establish the context.

2) identify the risk.

3) analyze the risk.

4) evaluate the risk.

5) treat and control the risk; and 6) monitor and review the risk control.

Refer to the risk management procedure for details on how to perform each step in the process.
7.0 Integration with other Systems and Processes Risk management is factored into business planning, acquisition, recruitment, performance management, audit and assurance, business continuity management and project management.

8.0 Risk Categories Risk categories may include a) Strategic.

b) Financial.

c) environmental, d) safety & health.

e) process.

f) task.

g) competency of people; and h) Reputation.


9.0 Risk Register The Risk Register is an important compliance tool for ensuring that all potential hazards and risks are adequately identified (e.g.

operational or strategic), the criterion for adding and removing risks from the register, who will review the risk register and how often it will be reviewed.

(Refer Annex I).

10.0 Risk Reporting All employees are obliged under this policy to report all risks to their Supervisor.
The Supervisor is to document these risks and apply best control measures.

The strategic risk register is prepared by the Financial Controller and reviewed by the Audit Committee on a quarterly basis.

11.0 Risk Management Performance The Risk Management Performance Indicators may include the following: a) number of internal audits completed per annum.

b) number of internal audit findings accepted by management.
c) timeliness of remediating internal audit findings; and d) reduction in the number of extreme risks in the risk register.

12.0 Risk Appetite PAFCO’s risk appetite will be determined by the Board, CEO and management after periodic risk assessments.
13.0 Review and Approval The review of the risk management policy shall be undertaken annually in order to take into the account progress made against the Risk Management Improvement Plan, which is a blueprint for how the risk management policy is implemented across the organization.
14.0 Enterprise Risk Management Strategy Table 2.0 below provides an overview of steps involved in the implementation of an Enterprise Risk Management (ERM) strategy adapted from a guide formulated by the main risk management organizations in the UK – the Association of Insurance and Risk Managers (AIRMIC), the public sector risk management association (Alarm) and the Institute of Risk Management (IRM) for all sectors.
ACTIVITIES CONCEPT/TOOLS & TECHNIQUES Planning & Designing Identify intended benefits of the enterprise risk management Plan the scope of the ERM initiative and develop common language of risk Establish the risk management strategy, framework, and the roles and responsibilities - Benefits of ERM initiative and gain Board mandate - Embedding risk management - Upside of risk - Stakeholder expectations - Risk management policy - Risk architecture Implementing and benchmarking Adopt suitable risk assessment procedures and an agreed risk classification system Establish risk significance benchmarks and undertake risk assessments Establish risk significance benchmarks and undertake risk assessments - Risk description - Risk classification systems - Risk description - Risk classification systems - Risk assessment techniques - Benchmark tests of significance Measuring and monitoring Determine risk appetite and risk tolerance levels, and evaluate the existing controls 8 Monitor and review risk performance indicators to measure ERM contribution - Risk register - Risk appetite - Control environment - Risk communications 9 Monitor and review risk performance indicators to measure ERM contribution 10 Report risk performance in line with legal Audit plan and risk reviews Sources of risk assurance - Risk reporting obligations, and monitor Learning and reporting and other improvement - Legal requirements Table 2.0: Enterprise Risk Management 15.0 References and Related Documents Associated policies Risk Register & Risk Management Improvement Plan (Annex I) Annex I Risk Register & Risk Management Improvement Plan Description Risk Type Inherent Impact Assessment Inherent Frequency Assessment Identified Controls Risk Preliminary Assessment of Controls Effectiveness Residual Impact Assessment Residual Frequency Assessment Residual Risk Assessment Planned Improvements Due Date Status Workers expose to noise hazard exceed 85dB in canning, fish sorting areas Hearing loss (permanent injury) Occupational diseases, affect worker’s behavior Moderate health hazard to workers working for 7 hrs.
per day, e.g.

stress, poor concentration, productivity loss, communication difficulties, hypertension Oil Spillage- Exposure to Slippery Floor on Canning Area Slips, and Fall Low risk of exposure Ammonia Workers exposed to Low level of exposure Approx.

7 hrs.

of exposure per day increase the probability of hearing loss, disrupt sleep, cause stress, poor concentration , productivity loss, communicatio n difficulties, hypertension Approx.

7 hrs.
of exposure per day increase the probability of slipping & falling that can cause injury in case of ammonia Reduce noise level <85dB, -Noise detection, Increase in ACCF claims, worker to wear appropriate PPE Training of worker on proper usage of PPEs Productivity loss – loss in revenue Non- compliance regulatory requirements to Continuous assessment of PPEs issued Monthly monitoring of noise levels Increase in sick leave Low Productivity Absenteeism Continuous evaluation of plant equipment & design to ensure compliance to noise levels Refresher training of workers on proper usage of PPEs On- going Compliant with personal protective equipment Monitoring of canning process to ensure control on oil spillage Continuous training on the media attendants for the canning process Bodily injury Daily monitoring of exposed areas in canning process Increase in sick leave Low Productivity Absenteeism Continuous improvement on plant equipment & design to minimize oil spillage Refresher training for media attendants in the canning process On- going Compliant with factory safety standards Daily monitoring of Ammonia Detection Alarm Loss of Visual, Shortness of Daily monitoring of ammonia Increase in sick leave Continuous improvement on plant On- going Compliant with factory safety standards ammonia gas leakage, workers will be exposed to ammonia gas ammonia circulation system Fuel (Fuel Storage Tanks) Factory and Workers exposed to fire explosion Low level of exposure LPG Gas Workers exposed to liquified petroleum gas Low level of exposure Daily monitoring of fuel tanks and circulation system Controlled accessibility on site Adherence to all safety work procedures Daily monitoring of LPG tank & discharge system in case of explosion of fuel tank, factory and workers will be affected in case of LPG leakage, workers will be exposed to LPG gas Loss of Visual, Shortness of Breath, Irritation of Nose and Throat Cold Work Environment Workers exposed in cold environment Moderate level of exposure – 5hrs daily Health issues arising from
 exposure to Proper PPEs issued is in place Refresher training on Ammonia Response team Ammonia Response Safety Kit in place Wind Direction markings in place Daily Visual Checks is in place 24/7 security checks Fire Response and evacuation drills in place Wind Direction markings in place Daily Visual Checks is in place 24/7 security checks Fire Response and evacuation drills in place Wind Direction markings in place Employees should follow SOP for extreme Breath, Irritation of Nose and Throat circulation system Refresher training for Ammonia Response team Daily monitoring of Ammonia Safety Checklist Low Productivity Absenteeism Increase in ACCF claims equipment & design to minimize ammonia leakage Refresher training for Ammonia Response team Loss of property Workers injured Loss of livelihood of workers Loss of property Workers injured Loss of livelihood of workers Daily visual checks on fuel storage tanks and circulation system Refresher training for Fire Response team Daily monitoring of Fire extinguishers Daily visual checks on fuel storage tanks and circulation system Refresher training for Fire Response team Daily monitoring of Fire extinguishers On- going Compliant with factory safety standards Loss of revenue Loss of livelihood for workers Increase in ACCF claims Refresher training for Fire Response team and fire drills Daily checks on fire extinguishers On- going Compliant with factory safety standards Loss of revenue Loss of livelihood for workers Increase in ACCF claims Refresher training for Fire Response team and fire drills Daily checks on fire extinguishers Likely body pain Refresher training for employees who work in this Increase in ACCF claims Refresher training for employees On- going Compliant with factory safety standards cold environment SOPs in place work environment Proper PPEs to be worn at all times area Increase in sick leave Low Productivity Absenteeism Circular No.
1/2013 File: 1.1.31 .

Date: 14/03/13 To: As per Distribution SUBJECT: TREATMENT OF GOVERNMENT GRANT AND/OR SPECIAL FUNDING The Ministry wishes to advise that as per Cabinet decision No.357 of 2012 any recent government grant or special funding to State Owned Enterprises be treated as capital contribution rather than revenue.

'-.._...As advised by the Office of the Solicitor General, this requirement applies to any grant and/or special funding from the year 2010 onwards.
All entities are requested to adhere to the above decision.

Sincerely, ~()// lViI'P'J f~j('j(';).bl~) -0 /)v'6ClI-tl... Elizabeth A. Powell PERMANENT SECRETARY GD/OOO Vv C,O\)~(ovtl0 (li~~) ?

C7VJ.,C1 it" 6'~ bY,,"'/ ~,_ r jl!.'
Q J)r fl>ou/ h ",~/ (J Ih} - 0vaJ RpUf~ fa_,;;;;;;- (I) b' ~~'"') Cfr ~(dlj)~ rr"~041 Plw7/ I~, 12,(lb ® iN ~o~ 00vJ h;)',l~ ~k",J~ ~L.Jl Ministry of Public Enterprises Level 4, Civic Tower, Victoria Parade POBox 2278, Government Buildings, Suva, Fiji P: +6793315577 F: +6793302060 CIRCULAR #a3/1D16 TO: DISTRIBUTION LIST 29Apri2D16 Rlel.131 SUBJECT: TREATMENT OF GOVERNMENT GRANT AND CHANGE OF FINANCIAL YEAR The Ministry wishes to advise all State Owned Entities (SOEs)on the following: 1.
2. to Public Enterprises Circular No.

06/2016, SOEs are advised that Treatment of Government Grant Further date for the rescinding of the 'Treatment of Government Grant' is effective from 9 March 2016, the date of the Cabinet Decision.

the implementation Change in Government Financial Year SOEs will continue Government's financial year.

to maintain their current financial year, regardless of the change in We look forward to your cooperation in facilitating these policy decisions.
Yours sincerely Page 1 Rohit Prasad From: Sent: To: Subject: Sanjana Mishra Thursday, 26 March 2020 8:38 AM Rohit Prasad FW: Treatment of Government Grant From: Sanjana Mishra Sent: Friday, May 10, 2019 3:52 PM To: Pankaj Singh (pankas.singh@finance.gov.fj) Cc: sujeet.chand@govnet.gov.fj; 'Rohit Prasad' Subject: RE: Treatment of Government Grant Hi Pankaj Any feedback on this as this has been raised as an emphasis of matter once again.
Thanks Sanjana From: Sanjana Mishra Sent: Tuesday, May 7, 2019 8:21 AM To: Pankaj Singh (pankas.singh@finance.gov.fj) Cc: 'sujeet.chand@govnet.gov.fj'; Rohit Prasad Subject: FW: Treatment of Government Grant Dear Pankaj The OAG office has raised an issue with regards to treatment of Government grant prior to 2016.

As you may recall the treatment of government grant as capital expenditure became effective from 2010.
However in 2016 as per the attached circular the treatment of government grant was to be treated in accordance with the IFRS standards.

The circular however stated that treatment should be from 2016 and beyond however the treatment as capital contribution remained from 2010 to 2016 onwards.

Due to this the OAG will continue to raise this matter.

Could you advise if Ministry has and plans to review from 2010.

I will call to discuss.


Thanks Sanjana From: Rohit Prasad Sent: Tuesday, May 7, 2019 8:02 AM To: Sanjana Mishra Subject: Treatment of Government Grant Attached is circular from Ministry of the treatment of government grant.
1 AIRPORTS FIJI o L M T E 25 June 2015 The Perma ne nt Secreta ry lVlinistry of Public Enterprises Level 4 Civic House Suva Dear Sir Treatment of Government Grant as Capital Contribution We wish to inform you that Auditor General's Office has once again given a qualified opinion on Airports Fiji Limited financial statements due treatment in our treatment statements.
Reporting Standards lAS 20. of Government grant as Capital contribution from the International deviates This current Financial financial As per lAS 20 1/ Accounting for Government Grants and Disclosure of Government Assistance" of assets to be recognised income on a systematic requires government initially as deferred income then recognised in the profit and loss as other the purchase or construction grants provided for basis in the same period that 2010 the government grant is treated as capital contribution.
the expenses are recognised.

However due to the cabinet decision of We the refo re wo uId Iike the lVlinistry of Publ ic Ente rprise to ad cI ress th is issue with the lVlin istry of Finance, as we believe this issue' owned commercial entities.

the other Government is also affecting all Your urgent attention on this matter will be much appreciated.

Yours faithfully AFL SAFETY MANAGEMENT SYSTEM MANUAL (Issue 5, Effective 26 April 2018) This publication is copyright.
Other than for the purposes of and subject to the conditions prescribed in the Copyright Act, no part of it may in any form or by any means (electronic, mechanical, micro­copying, photocopying, recording or otherwise) be reproduced, stored in a retrieval system or transmitted without prior written permission.
All inquiries and requests regarding this publication are to be addressed to: Executive Chairman Airports Fiji Limited Private Mail Bag Nadi International Airport Fiji Islands Tel: (+679) 6725 777 Fax: (679) 6725 161 E­mail: info@afl.com.fj Website: www.airportsfiji.com Published by Aeronautical Information Services, Airports Fiji Limited, Nadi Airport, Fiji Islands, TEL: (679) 672 5777,FAX: (679) 673 1114 AFS: NFFNYOYX, Email: info@afl.com.fj, Website: www.airportsfiji.com INTENTIONALLY BLANK AFL SAFETY MANAGEMENT SYSTEM MANUAL (Issue 5, Effective 26 April 2018) CONTROLLED E-COPY Approved by: .
Faiz Khan Executive Chairman AIRPORTS FIJI LIMITED Published by Aeronautical Information Services, Airports Fiji Limited, Nadi Airport, Fiji Islands, TEL: (679) 672 5777,FAX: (679) 673 1114 AFS: NFFNYOYX, Email: info@afl.com.fj, Website: www.airportsfiji.com INTENTIONALLY BLANK AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 FOREWORD The purpose of this manual serves to provide guidelines on how the organization is going to meet its obligation to effectively establish and manage a safety system as required under the relevant ICAO Annexes, and the national regulatory standards.
The instructions, procedures and information contained in this manual have been devised to ensure safety and standardization in the conduct of AFL operations.

These are required to be observed by all company personnel of AFL and they are also reminded of their obligation to comply with the Civil Aviation Reform Act 1999, Air Navigation Regulations 1981, Standards and any other directives, aeronautical information and notices that CAAF and AFL may publish from time to time.
Individual certificates are expected to adopt the requirements stipulated in this manual as part of their day­to­day operations.

The scope of this manual covers the six key certificates that are operated by the organization.

This includes the Aerodrome, Air Traffic Services Provider (ATSP), Search and Rescue (SAR), Aeronautical Information Services (AIS), Aviation Training Institute (ATI) and the Approved Maintenance Organization Certificate (AMOC).
This manual supersedes the forth edition of the SMS Manual.

…………………………….. Faiz Khan Executive Chairman AIRPORTS FIJI LIMITED 26 APR 18 Document Owner: MSRM INTRO - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 EDITORIAL NOTES The SMS Manual is scheduled for once a year printed page amendment with the effective date being an AIRAC date.

Approved amendments should be received by the AIS office prior to the set out cut­off date for this manual.
Amendments may also be effected via supplementary amendments (yellow pages) posted or emailed document holders as a need arises for urgent corrective action.

Document Holders should check the validity date, which is normally within 7 days of receipt.

Hard copy pages will replace emailed amendments shortly thereafter.

Supplementary amendments will normally be reissued in permanent form at the next AIRAC scheduled amendment process.
Amendments may extraordinarily consist of hand­amendments through instructions in either the scheduled or supplementary amendments.

The “record of Signalled/Supplementary Amendment” page shows the signalled/supplementary amendments that remain in force.

All others should be destroyed.

INTRO - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 RECORD OF AMENDMENTS Amend No.
Effective Date Date Entered Entered by Section/References 26 APR 18 Document Owner: MSRM INTRO - 3 AIRPORTS FIJI LIMITED SMS MANUAL Date of Issue: 26 APR 18 AFL 392 Issue 5 MAR 06 RECORD OF SIGNALLED/SUPPLEMENTARY AMENDMENTS Amend No.
Effective Date Date Entered Entered by Section/ References Cancelled by INTRO - 4 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 CHECKLIST OF PAGES Page No Effective Page No Effective INTRO­1 INTRO­2 INTRO­3 INTRO­4 INTRO­5 INTRO­6 INTRO­7 INTRO­8 INTRO­9 INTRO­10 COVER­1 COVER­2 CONTENT­1 CONTENT­2 CHP 1­1 CHP 1­2 CHP 1­3 CHP 1­4 CHP 1­5 CHP 1­6 COVER­1 COVER­2 CONTENT­1 CONTENT­2 CHP 2­1 CHP 2­2 CHP 2­3 CHP 2­4 CHP 2­5 CHP 2­6 CHP 2­7 CHP 2­8 CHP 2­9 CHP 2­10 COVER­1 COVER­2 CONTENT­1 CONTENT­2 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 CHP 3­1 CHP 3­2 CHP 3­3 CHP 3­4 COVER­1 COVER­2 CONTENT­1 CONTENT­2 CHP 4­1 CHP 4­2 CHP 4­3 CHP 4­4 CHP 4­5 CHP 4­6 CHP 4­7 CHP 4­8 CHP 4­9 CHP 4­10 COVER­1 COVER­2 CONTENT­1 CONTENT­2 CHP 5­1 CHP 5­2 CHP 5­3 CHP 5­4 CHP 5­5 CHP 5­6 CHP 5­7 CHP 5­8 CHP 5­9 CHP 5­10 CHP 5­11 CHP 5­12 COVER­1 COVER­2 CONTENT­1 CONTENT­2 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 Document Owner: MSRM INTRO - 5 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 Page No CHP 6­1 CHP 6­2 CHP 6­3 CHP 6­4 CHP 6­5 CHP 6­6 COVER­1 COVER­2 CONTENT­1 CONTENT­2 CHP 7­1 CHP 7­2 CHP 7­3 CHP 7­4 CHP 7­5 CHP 7­6 CHP 7­7 CHP 7­8 CHP 7­9 CHP 7­10 CHP 7­11 CHP 7­12 APPEN­1 APPEN­2 APPEN­3 APPEN­4 APPEN­5 APPEN­6 APPEN­7
 APPEN­8 APPEN­9 APPEN­11 APPEN­11 APPEN­12 APPEN­13 APPEN­14 APPEN­15 APPEN­16 Effective Page No Effective 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 APPEN­17 APPEN­18 COVER­1 COVER­2 CONTENT­1 CONTENT­2 CHP 8­1 CHP 8­2 CHP 8­3 CHP 8­4 APPEN­1 APPEN­2 COVER­1 COVER­2 CONTENT­1 CONTENT­2 CHP 9­1 CHP 9­2 CHP 9­3 CHP 9­4 APPEN­1 APPEN­2 COVER­1 COVER­2 CONTENT­1 CONTENT­2 CHP 10­1 CHP 10­2 CHP 10­3 CHP 10­4 CHP 10­5 CHP 10­6 CHP 10­7 CHP 10­8 CHP 10­9 CHP 10­10 CHP 10­11 CHP 10­12 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 INTRO - 6 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 Effective 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 Page No Effective Page No COVER­1 COVER­2 CONTENT­1 CONTENT­2 CHP 13­1 CHP 13­2 CHP 10­13 CHP 10­14 CHP 10­15 CHP 10­16 CHP 10­17 CHP 10­18 CHP 10­19 CHP 10­20 APPEN­1 APPEN­2 APPEN­3 APPEN­4 COVER­1 COVER­2 CONTENT­1 CONTENT­2 CHP 11­1 CHP 11­2 CHP 11­3 CHP 11­4 CHP 11­5 CHP 11­6 CHP 11­7 CHP 11­8 COVER­1 COVER­2 CONTENT­1 CONTENT­2 CHP 12­1 CHP 12­2 CHP 12­3 CHP 12­4 CHP 12­5 CHP 12­6 CHP 12­7 CHP 12­8 APPEN­1 APPEN­2 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18
 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 26 APR 18 Document Owner: MSRM INTRO - 7 AIRPORTS FIJI LIMITED SMS MANUAL Date of Issue: 26 APR 18 AFL 392 DISTRIBUTION LIST Holder Organisation Location Executive Chairman AFL GMATM & OPS MSRM Aviation Academy ATMC Nadi Tower Nausori Tower EOC Airside Office Aerodrome Maintenance Shed Incinerator AIS Academy RCC Main Fire Station (Duty Fire Officer's Office) AFL AFL AFL AFL AFL AFL AFL AFL AFL AFL AFL AFL AFL AFL Satellite Fire Station AFL BCW Transport Office AFL AFL Nadi Nadi Nadi Nadi Nadi Nadi Nausori Nadi Nadi Nadi Nadi Nadi Nadi Nadi Nadi Nadi Nadi Nadi Issue 5 4721 Copy No.
001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018 INTRO - 8 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Date of Issue: 26 APR 18 AFL 392 T/L Cicia T/L Gau T/L Kadavu T/L Koro T/L Lakeba T/L Moala T/L Rotuma T/L Vanuabalavu T/L Bureta T/L Labasa T/L Matei T/L Savusavu Labasa FIS Savusavu FIS Matei FIS Rotuma FIS CAAF CEO CAAF CGS AFL AFL AFL AFL AFL AFL AFL AFL AFL AFL AFL AFL AFL AFL AFL AFL CAAF CAAF Cicia Gau Kadavu Koro Lakeba Moala Rotuma Vanuabalavu Bureta Labasa Matei Savusavu Labasa Savusavu Matei Rotuma Nadi Nadi Issue 5 4721 019 020 021 022 023 024 025 026 027 028 029 030 031 032 033 034 035 036 26 APR 18 Document Owner: MSRM INTRO - 9 AIRPORTS FIJI LIMITED SMS MANUAL Date of Issue: 26 APR 18 AFL 392 Issue 5 4721 TABLE OF CONTENTS Chapter 1 .
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Abbreviations And Definitions Chapter 2 .

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Overview Chapter 3 .

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Safety Management System Policy Chapter 4 .

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Safety Objectives And Targets Chapter 5 .

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Safety Roles And Responsibilities Chapter 6 .

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Safety Committee Chapter 7 .

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Safety And Risk Management Chapter 8 .

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Reporting System Chapter 9 .

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Training And Education Chapter 10 .

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Auditing & Investigation Of Incident/Accident Chapter 11 .

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Documentation & Safety Data Management Chapter 12 .

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Safety Promotion And Change Management Chapter 13 .

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Evaluation Of Safety Management System INTRO - 10 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 ABBREVIATIONS AND DEFINITIONS 26 APR 18 Document Owner: MSRM COVER - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK COVER - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 CHAPTER 1 - CONTENTS ABBREVIATIONS .

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1.1 General .

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DEFINITIONS General 2.1 .

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AFL 392 CHP 1-1 CHP 1­1 CHP 1-2 CHP 1­2 1 2 26 APR 18 Document Owner: MSRM CONTENT- 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CONTENT- 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1 ABBREVIATIONS 1.1 General AMTM ACFT ADI AEP AFL AMOC AIC ARFFS AI AIS APM ATI ATM ATS ATSP CAAF CEO CHOP CHOPS CSSR EOC FOD GMATM & OPS ICAO LDA MAO MANES MARFFS MASS MEMS MF MLOCS MSRM NOTAM OMOIA OSPD PCN RWY SAG SAR SC SD SRC TWY Aerodrome Maintenance Team Member Aircraft Aerodrome Development Inspector Airport Emergency Plan Airports Fiji Limited Approved Maintenance Organisation Certificate Aeronautical Information Circulars Airport Rescue and Fire Fighting Services an Aerodrome Inspector employed by CAAF/AFL.
Aeronautical Information Service Airport Manager Aviation Training Institution Air Traffic Management Air Traffic Services Air Traffic Services Provider Civil Aviation Authority of the Fiji Chief Executive Officer Co­head Operations Co­head Operations Support Controller Standards & Search and Rescue Emergency Operations Centre Foreign object damage/debris General Manager Air Traffic Management & Operations International Civil Aviation Organization Landing Distance Available Manager Airside Operations Manager Aeronautical Navigation & Engineering Services Manager Aviation Rescue & Fire Fighting Services Manager Airport Security Service Manager Electrical & Mechanical Services Manager Fleet Manager Landside Operations & Customer Services Manager Safety & Risk Management Notice to Airmen Operations Manager Outer­Island Airports Online Safety Portal Database Pavement Classification Number Runway Safety Action Group Search and Rescue Safety Committee Standards Document published by CAAF Safety Review Committee Taxiway 26 APR 18 Document Owner: MSRM CHP 1 - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 2 DEFINITIONS 2.1 General 2.1.1 All definitions contained in the Civil Aviation Act, Regulations, the Aeronautical Information Publications and Standard Documents issued by the Authority, are applicable whenever appearing in this Manual.
2.1.2 users’ convenience, or because they are additional, or different in some way: definitions following provided The are for Agent ­ means the name, address and contact details of the person who is authorized to act on behalf of the applicant and where all correspondence should be sent if this person and address is different from the entity.

CAAF will need written evidence that an agent is authorized to act on their behalf.

Airside- That area of the Airport prohibited to the non­traveling public.
Aerodrome ­ means a defined area on land (including any buildings, installations and equipment) intended to be used either wholly or in part for the arrival, departure and surface movement of aircraft (Doc 9774 Manual on Certification of Aerodromes).

Aerodrome Manual Controller/Safety Officer ­ means a person with specific responsibilities under this manual.
Accidents- Accidental damage in excess of $1, 000 to vehicles, plant or equipment; death or serious injury to personnel or customers resulting from aerodrome operations; or damage to other property or injury to other personnel resulting from company operations qualify as accidents and must be immediately reported to the Manager Safety & Risk Management.

The Manager Safety & Risk Management shall notify the relevant authorities, as required, and conduct investigations into the event.
Assessment- An activity to determine whether or not a reported hazard is in fact a risk to our operation in any way.

The outcome of an assessment is to classify all reported hazards, incidents and accidents as a risk of a certain magnitude.

Assessment involves translating reported hazards and events into risks so that they can be dealt with in a meaningful way.

Authority ­ The Civil Aviation Authority of Fiji.


CHP 1 - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 Accountable Executive- refers to the AFL Executive who has the overall responsibility and the designated owner of all certificates operated by AFL.

Accountable Manager- refers to the General Manager who oversees the safe and efficient running of multiple certificates operated by the organization on a daily basis.
Audit- a systematic, independent and documented process for obtaining audit evidence and evaluating it objectively to determine the extent to which audit criteria are fulfilled.

Audit Evidence- records, statements of fact or other information, which are relevant to the audit criteria and verifiable.

Audit Plan- description of the on­site activities and arrangement for an audit.
Classification A1­ An incident whereby a breakdown of separation incident has occurred and an evasive manoeuvre was carried out to avoid collision between two or more aircraft.

Classification A2- An incident whereby a breakdown of separation incident has occurred and an evasive manoeuvre less than the applicable separation minimum was maintained between two or more aircraft or between an aircraft and Terrain or Obstacles.
Obstacles includes vehicles, equipment and personnel on runways and maneuvering areas.

Classification A3- The applicable separation minimum was maintained but a hazard or a potential hazard to Air Safety existed.

Non­adherence to applicable standards, rules, regulations or procedures.
Change Management­ The capabilities and support required by the organization constantly evolve in response to the changing requirements of interested parties, a dynamic business environment and the process of continual improvement.

Change may also require that there be associated cultural and behavioral adjustments within an organization.

Where these are necessary they will take time and resources and must be led by management.

Company­ Airports Fiji Limited.


The term "company" is used generically, and may include a council, an individual or the company.

26 APR 18 Document Owner: MSRM CHP 1 - 3 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 Cost­ Cost of activities, both direct, indirect, involving any negative impact, including money, time, labour, disruption, goodwill, political, and tangible losses.
Conformance- a judgement made by an auditor that the activities undertaken and the results achieved fulfill the specified requirements of the company's management system.

Compliance- the state of meeting legal requirements.

Critical safety information- Is the sort of information that staff and management need to be aware of, in order to do their job safely.

Typically, this would include information like a change to a company procedure required as part of a safety risk treatment option.
Consequences or Severity- the extent of harm that might reasonably occur as outcome of the identified hazard.

Should consider all possible consequences related to an unsafe condition or object, taking into account the worst foreseeable situation.

Defences- Are actions or elements of a design put in place to reduce the likelihood or consequence of an event.

Risk treatment will normally involve the introduction or enhancement of defences against a specific negative outcome.
Deficiency­ The result of imperfect; defective.

Such as hazards allowed to exist within a system result in a System Deficiency.

lacking something essential; Event- an incident or accident occurring within the jurisdiction of our operational certificates is regarded as an event.

Existing Hazard- refers to those hazards which have been reported and are known to the organization.

Facility- means premises being used, or to be used, for the operation of an aircraft on the aerodrome.
These premises may be fixed or portable, and may include communication facilities.

Hazard- condition or object with the potential to cause death, injuries to personnel, damage to equipment or structures, loss of material, or reduction of ability to perform a prescribed function.
For the purpose of aviation safety risk management, hazard should be focused on those conditions that could cause or contribute to unsafe operation of aircraft or aviation safety related equipment, product and services CHP 1 - 4 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 Human Factors- Human factors involves the study of the human's capabilities, limitations, and behaviours and the integration of that knowledge into the design of systems to enhance the safety, performance and the general well being of the operators of the systems.
Incidents­ Incidents are events other than an accident, associated with the operation of the aerodrome that results in injury or damage to vehicles, plant or equipment.

Legal Entity- means a person having legal personality (capable of enjoying and being subject to legal rights and duties).

A legal entity may be: ­ a natural person, or a group of natural persons; ­ an incorporated company or association, or a group of such companies or associations; ­ a body corporate or politic created by statute.
Likelihood- Used as a general description of probability or frequency.

Note: Can be expressed qualitatively or quantitatively.

Maneuvering Area- That part of an aerodrome to be used for the take­off, landing and taxiing of aircraft, excluding aprons.

Mitigation- The actions taken to either control, reduce or remove a hazard or to reduce the probability or the severity of a risk.

The result of an action to make milder or less severe.
Monitor- To check, supervise, observe critically, or record the progress of an activity or system on a regular basis in order to identify change.

Non-conformance- a judgement made by an auditor that the activities undertaken and the results achieved do not fulfilled the specified requirements of the management system criteria.

Non-compliance- a judgement made by the auditor that the systems in place do not fulfill the legal requirements.
Non-critical safety information- Is the sort of safety information that staff and management only need a general awareness of as part of their job.

Operator- has the same meaning as "company" Owner- means the legal entity holding the Certificate.

26 APR 18 Document Owner: MSRM CHP 1 - 5 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 OSPD- The Online Safety Portal Database has been established to effectively manage all our safety reports related to hazard, incident incl.
MOR, non­compliance and audit findings.

The portal can be accessed on 'http://10.99.100.29/srm/.

To report a hazard or view progress including the viewing of Safety Performance, no login information is required.

Risk- The chance of something happening that will have an impact upon objectives.

It is measured in terms of consequences and likelihood.

Risk analysis- A systematic use of available information to determine how often specified events may occur and the magnitude of their consequences.
Risk assessment­ The overall process of risk analysis and risk evaluation.

Risk evaluation- The process used to determine risk management priorities by comparing the level of risk against predetermined standards, target risk levels or other criteria.

Risk identification- The process of determining what can happen, why and how.

Risk level- The level of risk calculated as a function of likelihood and consequence.
Risk management- The culture, processes and structures that are directed towards the effective management of potential opportunities and adverse effects.

Safety- Safety is the state in which risks associated with aviation activities, related to, or in direct support of the operation of aircraft, are reduced and controlled to an acceptable level.

Safety Management System- a systematic approach to managing safety, structures, accountabilities, policies and procedures.
The principle objective is the safety of flight.

organizational, necessary including the Safety Performance- a state or a service provider's safety achievement as defined by its safety performance targets and safety performance indicators.

CHP 1 - 6 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 Safety Performance Indicator- a data­based parameter used for monitoring and assessing safety performance.
Safety Performance Target- the planned or intended objective for safety performance indicator(s) over a given period.

Secretariat- at the Safety Review Committee, the Secretariat is the SRM unit staff whilst at the SAG committee the Secretariat is the department's Safety Officer.
Serious Injury- An injury which is sustained by a person in an accident and which: a) b) c) requires hospitalization for more than 48 hours, commencing within seven days from the date the injury was received; or results in a fracture of any bone (except simple fractures of fingers, toes or nose); or involves lacerations which cause severe haemorrhage, nerve, muscle or tendon damage; or d) involves injury to any internal organ; or e) f) involves second or third degree burns, or any burns affecting more than 5 per cent of the body surface; or involves verified exposure to infectious substances or injurious radiation.
Short Term Corrective Actions- Short term corrective actions are those which the Manager Safety & Risk Management considers to be a temporary fix while awaiting the implementation of a permanent (long term) solution.

Unmanned Airport- Airport where no Air Traffic Services is provided.
26 APR 18 Document Owner: MSRM CHP 1 - 7 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CHP 1 - 8 Document Owner: MSRM 5 JAN 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 OVERVIEW 26 APR 18 Document Owner: MSRM COVER - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK COVER - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 CHAPTER 2 - CONTENTS 1 SYSTEM OVERVIEW .
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1.1 1.2 1.3 1.4 1.5 1.6 1.7 Why SMS?

1.8 1.9 1.10 General Airspace Management Air Navigation Services Aerodrome Operations Fitness and Competence of Personnel Company Operations Perception of Safety .

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Benefits of safety Management Regulatory and ICAO Requirements ICAO Annex 19 .

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AFL 392 CHP 2-1 CHP 2­1 CHP 2­1 CHP 2­1 CHP 2­2 CHP 2­2 CHP 2­5 CHP 2­6 CHP 2­7 CHP 2­8 CHP 2­9 26 APR 18 Document Owner: MSRM CONTENT- 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CONTENT- 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1 SYSTEM OVERVIEW 1.1 General 1.1.1 AFL’s key business includes Airspace Management, Air Navigation Service and Aerodrome operations, including maintenance of required facilities, and the fitness & competency of personnel.
1.2 Airspace Management and the provision of Air Navigation Services AFL provides air traffic management (ATM) services and 1.2.1 facilities in the Nadi flight information region (FIR), Vanuatu and New Caledonia sector and Fiji Domestic airspace.

The Nadi FIR includes the air space over Fiji, Tuvalu, New Caledonia, Wallis & Futuna, Kiribati and Vanuatu.
ATM covers Air Traffic Services Provider certificate, Aviation Information Services Training Institute certificate Aeronautical certificate and the Search & Rescue Certificate.

1.2.2 AMO certificate includes the functional units of Aeronautical Navigation &Engineering Services, Electrical & Mechanical Services (E/M) and ICT.

The ANES provides maintenance and technical support to the CNS facilities and ATM equipment.
ICT provides maintenance and engineering support to the airport facilities whilst E/M is responsible for the provision of power supply to these facilities.

1.3 Aerodrome Operations.

1.3.1 Airports Fiji Limited manages and operates 15 public airports which include 2 international airports (i.e.

Nadi and Nausori) and 13 domestic airports in the outer islands.
This includes the provision of aerodromes for landing and take­off including rescue and firefighting services, and maintenance of related facilities and services as per the relevant aerodrome certificate conditions.

26 APR 18 Document Owner: MSRM CHP 2 - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 1.4 Fitness and Competence of Personnel.
1.4.1 AFL operates an aviation training institution that is accredited by the Fiji Higher Education Commission and certified by the Civil Aviation Authority of Fiji.

It conducts specialised training in the field of Air Traffic Management, Aeronautical Information, Aeronautical Facilities, Aerodrome Operations, Rescue &Fire Fighting Services, Safety Management System and Aviation Security.
In addition, it also conducts Aeronautical Station Officer License (ASOL) training to all stakeholders requiring access to the movement area.

1.5 Company Operations 1.5.1 Below is the high level system overview of our business.

1.5.2 In the event of an accident or incident whereby an aircraft is disabled on the movement area, the aircraft owner normally requests AFL to also access the site.

In such event, required clearance from the tower still applies.
In addition to the above, Security plays a vital role in the screening of all personnel, cargo and vehicle movements unto the airside to ensure that any potential threats are detected and mitigated accordingly.
1.5.3 Limited are shown below: The company details of the aerodrome operator, Airports Fiji Headquarters Postal Address Contacts: Airports Fiji Limited Private Mail Bag Phone:+679­672 5777 Ottawa Road Nadi Airport Fax: +679­672 5161 CAAF Compound Fiji Islands www.afl.com.fj CHP 2 - 2 Document Owner: MSRM 26 APR 18 L F A 2 9 3 8 1 R P A 6 2 : e u s s I f o e t a D & i g n d n a l e h t t a f f o ­ / / .
d e r i u q e r R O M / d r a z a H e s a R i .
/ ­ e k a t / / ­ y c n e g r e m e l i a s r e p s d e f i : l d W l i : t u o y r r a C r o / d n a  t n e m e v a P t u o y r r a C & e c n a n e t n a M i / Y W R ( g n i t n a P i ) n o r p A /  , s t h g L i n o i t c e p s n I ( , D O F ( a e r A ) ) a e r d G s t r c i A u d ( n o C i i e d s d n a L / / R
h t a e r a p i r t s r e w o T y b t s e u q e R  r e p s a t n e m e r i u q e R    e s n o p s e r t s e u q e r s a t n e m e r i u q e R  & e m o r d o r e A 5 e u s s I 3 - 2 P H C M R S M : : . & & / a l i e b s s o p l l a r e d n e R .
y t l u c i f f i d h c u s i t s s s a & e c n a t s s s a i .

d e r i u q e r s a n o i t a s n a g r o i 3 & 2 , 1 C T A f e R .

t n e m e v o M d n u o r G e f a S l i / e c h e V / t f a r c r i A ( ) n o i t c u t s b O .

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a/ e r A l o r t n o C l a c o L & a m u t o R ( t r o p r i A n  l e u d e h c S  8 1 R P A 6 2 M R S M : r e n w O t n e m u c o D 4 - .
1 y t i l i c a f d e r i u q e r s k r o w j t c e o r P .

2 l r e d o h e k a t s e r i u q e r l e g d e w o n k AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1.6 Perception of Safety 1.6.1 In order to understand safety management, it is necessary to consider what is meant by “safety”.
Depending on one’s perspective, the concept of aviation safety may have different connotations, such as: a) Zero accidents (or serious accidents), a view widely held by the traveling public; b) The freedom from danger or risks, i.e.
those factors which cause or are likely to cause harm; c) The attitude towards unsafe acts and conditions by employees (reflecting a “safe” corporate value); d) The degree to which the inherent risks in aviation are “acceptable”; e) The process of hazard identification and risk management; and f) The control of accidental loss (of persons and property, and damage to the environment).
While the elimination of accidents (and serious incidents) 1.6.2 would be desirable, a one hundred percent safety rate is an unachievable goal.

Failures and errors will occur, in spite of the best efforts to avoid them.

No human activity or human­made system can be free from risk.

Safety is a guaranteed to be absolutely safe, considered notion whereby inherent risks are acceptable in a “safe” system.

i.e.
i.e.

1.6.3 A Safety Management System (SMS) is an organized approach to managing safety, including the necessary organizational structures, accountabilities, policies and procedures.

26 APR 18 Document Owner: MSRM CHP 2 - 5 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 1.7 Why SMS?

1.7.1 Accidents and incidents cost money.

Although accidents are rare, there is a whole range of incidents which occur more frequently.
These incidents may be an indication of underlying safety problems.

AFL has a responsibility, or duty of care, to ensure the welfare and safety of our customers and colleagues, therefore we cannot ignore these underlying safety hazards which could pave the way for an increase in the number of more serious accidents.

1.7.2 Safety Management System is not only a proactive approach but also an investment with the potential for high returns over the long term.
It also provides: i) Instructions, procedures and information to ensure safety and standardization in the conduct of our operations; ii) Personnel with a guideline on the company procedures and the handling of safety systems operated by the company; iii) Guard against direct and indirect cost of potential incident/accident; for instance even a minor accident may incur a range of indirect costs, such as: S S S S Loss of business and damage to the company’s reputation; Legal action cost and damages claim; Increased insurance premiums; Loss of staff productivity etc.
iv) Satisfy regulatory requirement.

1.7.3 sustainable aviation business.
The management of safety is therefore a prerequisite for a CHP 2 - 6 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1.8 Benefits of Safety Management 1.8.1 Some of the benefits are: S S S S S S S S S S S S Reduction in workplace accidents and injuries; Long term cost efficiencies; Provision of a competitive advantage in future activities; A record of consistently safe operations can be used to attract new business and investment; Elevation of the standard of safety management, which should result in lower insurance premiums if implemented effectively; Compliance with legal safety responsibilities; Airport certification requirements mandate a number of safety processes and standards; Improve staff morale and productivity; Promoting communication between management and the rest of the organization prevents disenfranchisement and lifts morale; Effective management of risks ensures safe operations; Continuous improvement of operational processes; SMS allows for lessons learned to be incorporated into the system and lead to superior operations.
26 APR 18 Document Owner: MSRM CHP 2 - 7 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 1.9 Regulatory and ICAO Requirements 1.9.1 The Civil Aviation Act 1976, Civil Aviation Authority Act 1979, Civil Aviation (Reform) Act 1999, Air Navigation, Regulations (ANRs) and Standards Documents lay the foundation for Civil Aviation Requirements in Fiji.
These requirements provide a sound, simple, cohesive legal framework which is, wherever practicable, consistent and compliant with the Annexes to the Convention and suited to the level of aviation activity within the State.

The State Safety Programme and the Standards Document SMS sets out the requirements for establishment of safety management systems in Fiji.
1.9.2 This SMS Manual has been developed to meet AFL’s obligation, as an aviation training institution, air navigation service provider and aerodrome operator, to comply with standards for SMS notified by the Authority.
In addition to addressing the requirements of the SD­SMS, this manual addresses requirements of the: S S S S S S S S S Fiji State Safety Program; Civil Aviation Reform Act 1999; Air Navigation Regulations 1981 (145A, 145B, 145C,145E); Annex 14 – Aerodromes; Annex 11 – Air Traffic Services; Annex 19 – Safety Management System; Doc 9774 – Manual on Certification of Aerodromes; Doc 9859 – Safety Management Manual; Doc 9981 ­ Aerodrome PANS Ops.
CHP 2 - 8 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1.10 ICAO Annex 19 1.10.1 Annex 19, para 3.1.3 states that “As part of its SSP, each State shall require that the following service providers under its authority implement an SMS: a) approved training organizations in accordance with Annex 1 that are exposed to safety risks related to aircraft operations during the provision of their services; b) operators of aeroplanes or helicopters authorized to conduct international commercial air transport, in accordance with Annex 6, Part I or Part III, Section II, respectively; Note: When maintenance activities are not conducted by an approved maintenance organization in accordance with Annex 6, Part I, 8.7, but under an equivalent system as in Annex 6, Part I, 8.1.2, or Part III, Section II, 6.1.2, they are included in the scope of the operator’s SMS.
c) Approved maintenance organizations providing services to operators of aeroplanes or helicopters engaged in international commercial air transport, in accordance with Annex 6, Part I or Part III, Section II, respectively.
In Fiji, this also includes the provision of Air Navigation Services (ANS); d) Organizations responsible for the type design or manufacture of aircraft, in accordance with Annex 8; e) Air traffic services (ATS) providers in accordance with Annex 11; and Note: The provision of AIS, CNS, MET and/or SAR services, when under the authority of an ATS provider, are included in the scope of the ATS provider’s SMS.
When the provision of AIS, CNS, MET and/or SAR services are wholly or partially provided by an entity other than an ATS provider, the related services that come under the authority of the ATS provider, or those aspects of the services with direct operational implications, are included in the scope of the ATS provider’s SMS.

f) Operators of certified aerodromes in accordance with Annex 14.
26 APR 18 Document Owner: MSRM CHP 2 - 9 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CHP 2 - 10 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 SAFETY MANAGEMENT SYSTEM POLICY 26 APR 18 Document Owner: MSRM COVER - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK COVER - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 CHAPTER 3 - CONTENTS 1 1.1 1.2 1.3 .
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SMS POLICY General Safety Policy Penalty­Free Safety Reporting Policy .

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AFL 392 CHP 3-1 CHP 3­1 CHP 3­2 CHP 3­4 26 APR 18 Document Owner: MSRM CONTENT- 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CONTENT- 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1 SMS POLICY 1.1 General 1.1.1 The Safety Policy provides not only the philosophy but also the foundations on which the SMS is built.
The safety policy outlines the methods and processes that the organisation will use to achieve its desired safety outcomes.

Furthermore, it serves as a reminder of “how we do business around here”.

Management’s 1.1.2 officially commitment communicated in the Safety Policy statement.

This safety policy reflects AFL’s commitment reviewing and continuous improvement of the safety management system’s element.
It also summarizes the practices and processes that AFL would exploit to accomplish the desired safety results.

towards the implementation, safety to is 1.1.3 The safety policy is required to be communicated to all staff to give them a sense of ownership.

The safety policy is subject for review after every 3 years.
1.1.4 The two key policies which have been adopted by the organization to facilitate the timely and effective management of safety issues in the company are: a) Safety Policy b) Penalty­Free Safety Reporting Policy 26 APR 18 Document Owner: MSRM CHP 3 - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 1.2 Safety Policy SAFETY POLICY Airports Fiji Limited is committed to providing a safe and healthy working environment for its employees, customers and other users.
AFL shall operate in accordance with all applicable legal requirements and international standards.

AFL shall endeavor to benchmark itself against best reflect organizational In pursuing these goals the commitment comprehensive demonstration of the following are important to ensure that the company continues to maintain an effective Safety Management System: S industry practice, and shall regarding safety.
Senior management commitment to the establishment and maintenance of safe workplaces and practices by identifying responsibilities, and holding responsible, the respective managers; The inclusion of safety and risk management into all part of our operations; The proactive incorporation of safety principles and controls into our standard operating procedures; All personnel to be provided with the necessary skills through training to ensure they maintain the required competencies; Through education, develop awareness to ensure personnel have a common understanding of safety and the nature of hazards; The promotion of reporting incidents/accidents and potential hazards on non­punitive basis; A need to openly disseminate safety related information and provide between communication two­way management and personnel; channels S S S S S S S Our commitment to establish clear standards of acceptable behaviour; CHP 3 - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 S S Enlisting the support of all personnel in developing solutions to eliminate unsafe conditions and practices; Vigilant application by each individual in conducting their duties, conforming to standard operating procedures furthermore complying with regulatory requirements; S Our commitment to continuously improve our safety management system and level of safety.
Our fundamental safety beliefs are: S S We will strengthen our business by making safety excellence an Safety is a source of our competitive advantage; integral part of all activities; S We believe that all accidents and incidents are preventable; S All levels of line management are accountable for our safety performance, starting with the Chief Executive Officer (CEO).

All employees are required to communicate any issue that can have a safety impact to the Safety & Risk Management Dept.
Telephone: 672 5777 Ext 6724.

Fax: 673 1383.

Email: safetyandrisk@afl.com.fj.

This safety policy is subject for review after every 3 years or earlier should there be any immediate change to ensure it remains relevant and appropriate to the organization.

……………………………….. Faiz Khan Chairman Airports Fiji Limited April 2018 Rev 4.0 Policy No.
081 26 APR 18 Document Owner: MSRM CHP 3 - 3 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 1.3 Penalty-Free Safety Reporting Policy Penalty-Free Safety Reporting Policy Non­punitive reporting of incidents, accidents and error is an essential element of our Safety Management System (SMS).

It is therefore essential that all information affecting safety is freely available within AFL.
All personnel can feel confident that they can disclose any such information without fear of retribution.

As such, we fully endorse non­punitive incident/accident and error reporting within AFL.

This will develop and foster a culture of mutual trust, in which we adopt a team approach to resolve problems and prevent recurrences.

However this does not imply that AFL will tolerate negligence or willful violations of standard operating procedures, policies or regulations.
……………………………….. Faiz Khan Chairman Airports Fiji Limited April 2018 Rev.

3.0 Policy No.
3.0 Policy No.

082 CHP 3 - 4 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 SAFETY OBJECTIVES AND TARGETS 26 APR 18 Document Owner: MSRM COVER - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK COVER - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 CHAPTER 4 - CONTENTS 1 1.1 1.2 1.3 1.4 1.5 SAFETY OBJECTIVES AND TARGETS .

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General Principal Safety Objectives Development Of Safety Objectives Safety Performance Indicators and Targets Communications .

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AFL 392 CHP 4-1 CHP 4­1 CHP 4­1 CHP 4­2 CHP 4­2 CHP 4­9 26 APR 18 Document Owner: MSRM CONTENT- 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CONTENT- 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1 SAFETY OBJECTIVES AND TARGETS 1.1 General Effective safety management 1.1.1 than establishing an appropriate organizational structure and promulgating rules and procedures to be followed.
It requires a genuine commitment to safety especially on the part of Senior Management.

requires more 1.1.2 The key indicator of management’s commitment to safety is the establishment of an appropriate management structure, assigning responsibilities and accountabilities, and allocating appropriate resources must be consistent with the organization’s stated safety objectives.

1.1.3 essential ingredient for a successful SMS.


Senior Management commitment to the Safety culture is an 1.1.4 Under ICAO Annex 19 and Fiji’s State’s Safety Program, the Service Provider’ s Safety Performance Indicators (SPIs) are required to be approved as acceptable to the Authority.

The approval of this manual by the Authority indicates acceptance by CAAF of the SPIs detailed under para 1.4 of this chapter.

Any amendments to these SPIs shall require acceptance and approval by CAAF.
1.2 Principal Safety Objectives 1.2.1 reasonably practicable, the: The principal safety objective is to minimize, as much as is S S S S risk of an aircraft accident/incident at or in the vicinity of the aerodrome , within Fiji’s domestic airspace and within the Nadi Flight Information Region (FIR); risk of an accident or loss of life to employees and traveling public; risk of damage or loss to the company and tenants‘ assets ; risk of equipment and facilities outage.
1.2.2 To achieve this, Management System in a way that will: the company will implement its Safety 26 APR 18 Document Owner: MSRM CHP 4 - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 i) Establish clear Safety Performance Indicators/Targets across the company to enable performance to be measured.
These are contained in part 3.3 below; ii) Maintain an effective safety management system in the company through continuous improvement; iii) Raise safety awareness to all employees and provide training so that they can safely carry out their responsibilities; iv) Promote the adoption of safety management system practices by the company’s contractors; v) Promote a positive safety culture across the organization.
1.3 Development Of Safety Objectives Based on the principal safety objectives sated in para 1.2 1.3.1 above, relevant certificate is required to develop a coherent set of safety objectives that are paramount to their key processes (Focus Areas).

The selection of these key processes should be based on its significance in providing continuous flight safety both on the ground and in the air.

1.3.2 As a start, a number of focus areas have been identified for all our certificated areas.
These focus areas are required to be analyzed and reviewed annually by the relevant certificate to determine its adequacy and relevance in order to gauge the safety performance of each unit.

1.3.3 During the review process, the SAG committee is required to go through their respective safety objectives and make a collective decision on its adequacy.

Any amendments should be raised using the amendment request form and incorporated accordingly into this manual.
Any changes to the list of safety objectives should be 1.3.4 approved by the Accountable Manager with prior approval of the relevant SAG committee.

The changes shall also be communicated to the regulator for their approval before publishing.
1.4 Safety Performance Indicators and Targets 1.4.1 functions of the company are outlined below: The safety performance indicators for the two core business CHP 4 - 2 Document Owner: MSRM 26 APR 18 L F A 2 9 3 8 1 R P A 6 2 : / .
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f f a t s r e p k e e w r e p i g n k r o W s r u o h .
k e e w L F A 2 9 3 8 1 R P A 6 2 : / : / P O H C S P O H C l a n r e t n I d n a , ­ ­ 2 A 0 0 0 , 0 0 1 / 3 = 2 A 0 0 0 , 0 0 1 / 1 = 1 A d e r i u q e r n o i t c a 0 0 0 , 0 0 1 / 5 = 3 A , s e u r l , s d r a d n a t s o t e c n e r e h d a ­ n o N ­ / / / s t n e d c n i i s t h g i l f / .
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4 7 - 4 P H C M R S M : r e n w O t n e m u c o D 8 1 R P A 6 2 .
2 1 d e e c x e ) 3 A d n a 2 A , ( : : r e n w O t n e m u c o D 8 - 4 P H C AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1.5 Communications 1.5.1 The Manager Safety & Risk Management shall be responsible for overseeing that both critical and non­critical safety information are made available to all staff in a timely manner.
MSRM shall be responsible for circulating the current Safety 1.5.2 Performance Data (based on the approved Safety Performance Target contained in para 1.4) to all operational managers after every yearly quarter.

However, daily and weekly updates are also encouraged, given that there is a proven process on how data is collected and analyzed.

1.5.3 available at each certificate area or location.
MSRM shall ensure that a Safety Bulletin Board (SBB) is 1.5.4 Critical Safety Information includes hazard and incident progress, non­compliance updates, any immediate safety concerns and certificates safety performance.

Update of Critical Safety Information is accessible via the online Safety Portal.

1.5.5 Non­critical safety information includes safety news, general safety lessons from other aviation organisation etc.
This will be made available from time to time by the Safety & Risk Management Unit or to a particular certificate by the responsible Safety Officer.

This information can be circulated via e­mail or put up on the relevant SBB.
5 JAN 18 Document Owner: MSRM CHP 4 - 9 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CHP 4 - 10 Document Owner: MSRM 5 JAN 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 SAFETY ROLES AND RESPONSIBILITIES 26 APR 18 Document Owner: MSRM COVER - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK COVER - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 CHAPTER 5 - CONTENTS SAFETY ROLES AND RESPONSIBILITIES .
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1.1 Outline MANAGEMENT ACCOUNTABILITY .

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2.1 General AFL'S ORGANIZATION FOR SAFETY MANAGEMENT .

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General Reporting Line AFL 392 CHP 5-1 CHP 5­1 CHP 5-1 CHP 5­1 CHP 5-3 CHP 5­3 CHP 5­3 RESPONSIBILITIES OF COMPANY PERSONNEL .

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General Accountable Executive Accountable Manager Manager Safety and Risk Management Aerodrome Reporting Officer Safety Officer (SO) All Employees Certificate Holders General Responsibilities .

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CHP 5-7 CHP 5­7 CHP 5­7 CHP 5­7 CHP 5­8 CHP 5­10 CHP 5­10 CHP 5­10 CHP 5­11 1 2 3 4 3.1 3.2 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 26 APR 18 Document Owner: MSRM CONTENT- 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CONTENT- 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1 SAFETY ROLES AND RESPONSIBILITIES 1.1 Outline 1.1.1 The implementation of safety management within AFL is a vital component in ensuring business sustainability and growth without compromising safety.
This effective implementation will ensure that risks are mitigated and reduced to an acceptable level.

1.1.2 There are several issues that are essential to sustaining an effective organization that will provide support to the SMS; this includes the following: S Appointment of the Safety Manager; S Organizational structure that facilitates safety management; S Management responsibilities and accountabilities; S S Establishment of the Safety Committee; and Ensuring training and competency.
2 MANAGEMENT ACCOUNTABILITY 2.1 General 2.1.1 the implementation of the SMS.

This includes the following: The Executive managements are responsible for overseeing S S S S S Demonstrating their commitment to safety; Endorse policies, safety standards ,and acceptable levels of safety; Encourage staff participation in safety management; Allocating sufficient resources to safety; Encourage the flow of safety information; and S Over seeing system performance.
26 APR 18 Document Owner: MSRM CHP 5 - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 2.1.2 The line managers shall be responsible for: S S S S S Implementation of safety programs or processes; Ensuring that staff receives required safety training that are relevant to their roles; Ensuring that staff are appropriately equipped with relevant tools and PPE for them to perform effectively and efficiently; Ensuring adherence to safety rules and procedures; Provide safety coaching where and when required; S Monitor and provide feedback on the department’s safety performances; S S S Assisting/conducting incident investigations; Ensuring effective change management by developing a safety case to ensure all safety issues are understood and addressed prior to and during project implementation; Notify MSRM of any staff renounce for unsafe act.
2.1.3 The company shall ensure the following: S Managers involvement in safety activities; S S Conduct of Safety induction and recurrent employees; training for all A commitment to safety by everyone.

CHP 5 - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 3 AFL'S ORGANIZATION FOR SAFETY MANAGEMENT 3.1 General 3.1.1 This company operates with the positions described below.
A simple reporting structure is implied by the arrangement of the executive and managerial positions in this list.

3.2 Reporting Line 3.2.1 The safety manager has an open line of communication to the Accountable Executive; with informal communication line to the certificate’s Accountable Manager and other line managers.

This ensures that safety reports and recommendations are attended to, and appropriate solutions are implemented in a timely manner.
The Manager Safety & Risk Management is assisted by five full time officers with Safety responsibilities who are based at the Safety & Risk Management department.

Below is the company’s Organization Structure.
26 APR 18 Document Owner: MSRM CHP 5 - 3 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CHP 5 - 4 Document Owner: MSRM 26 APR 18 L F A 2 9 3 8 1 R P A 6 2 : - 5 P H C M R S M : : : r e n w O t n e m u c o D 6 - 5 P H C AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 4 RESPONSIBILITIES OF COMPANY PERSONNEL 4.1 General 4.1.1 specific responsibilities are as follows: Apart from the general responsibilities mentioned above, 4.2 Accountable Executive 4.2.1 The Accountable Executive is the Executive Chairman.
The AE through the Board of Directors appoints MSRM.

The AE shall implement the following: S S S S S S Developing the strategic business planning process, i.e.
mission, strategies, goals, and initiatives; Define and approving the Safety Policy of the organisation; Foster a positive safety culture; Including safety responsibility in each managers job description and performance review; Providing an environment and resources in which the Manager Safety & Risk Management and Safety Officers are able to effectively manage operational safety within the organization; Settlement of disagreements which create an impasse among the department heads.
4.2.2 safety management at all aerodromes owned or managed by AFL.

The AE has authority to expend necessary resources for 4.3 Accountable Manager 4.3.1 The overall Accountable Manager for all certificates is GMATM & OPS.

The AM is responsible for overseeing the smooth safe operation of all certificates (including all Aerodromes, AMO, ATI, ATSP/SAR and AISP) in consultation with the relevant line managers.
The Accountable Manager shall be instrumental in the following: 26 APR 18 Document Owner: MSRM CHP 5 - 7 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 S Oversee the safe operation of all certificates and provide timely advise to the AE in consultation with MSRM; S S S S S S Provide timely advise to the relevant certificate on operational safety matters; Advising the regulator (CAAF) of any changes in the organization of safety management in consultation with MSRM; Establishing specific safety performance measurements by each operating division; Naming divisional/departmental safety initiatives; individuals specific responsible to facilitate Ensure that each certificate areas comply with the Safety Management System requirements; Ensure that safety procedures are followed by all certificates; S Oversee the timely address of any non­compliance issues raised by the regulator.
4.4 Manager Safety and Risk Management 4.4.1 The Manager Safety & Risk Management shall be the driving force and the focal point for the systematic changes necessary to effect the safety culture across the entire organization.
4.4.2 The responsibilities of the MSRM are as follows: S S Reports pertinent safety issues immediately to AE; Administer the day­to­day operation of the Safety Management System; S Obtain and distributing pertinent aviation safety information to staff; S Provide timely advice and assistance on safety matters to managers and staff at all levels; CHP 5 - 8 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Date of Issue: 26 APR 18 AFL 392 Coordinates the collection of required safety data for trend analysis; Provide and monitor the online Safety Portal to ensure relevancy and recency; Issue 5 S S S Monitor the overall status of non­compliance issues and provide update once every 3 months to the Board in consultation with the Accountable Manager; S S S S S Assist the organization in developing and sustaining a positive safety culture; Create awareness on how to identify operational hazard across the organisation; Implement and maintain an effective and efficient hazard and incident reporting system; Assist in Incident/Accident investigation and reporting; Ensure that safety documentations are current; S Management of immunity based reporting systems; S S S S S S Provide feedback about ongoing safety issues; Conduct safety training in line with the company training requirement; Dissemination of valuable safety­lessons­learnt within the organisation; Assist in the development and/or endorse safety case studies prepared by the various certificate holders; Conduct workplace assessment to identify existing and potential hazards on a regular basis; and Reviewing and evaluating the Safety Management System at regular intervals.
26 APR 18 Document Owner: MSRM CHP 5 - 9 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 4.5 Aerodrome Reporting Officer 4.5.1 The Aerodrome reporting officer can be any of the following: aerodrome development inspector, Administration officer­ outer station, maintenance staff, Airside officers, Rescue fire services personnel, flight labourers/auxiliary firefighters/AMTM at domestic airports.
The Aerodrome Reporting Officer shall perform the following functions: information officers service and S Monitor the serviceability of the aerodrome; and S Report to the NOTAM Office and to air traffic services any changes in conditions, or any occurrences, at the aerodrome that may or will affect flight safety.

4.6 Safety Officer (SO) 4.6.1 The function of the SO is to ensure that the aerodrome is safe for aircraft operations during and after the project implementation stage.
This position is only required for the duration of a project.

For further information, refer to the relevant Aerodrome Manual.
4.7 All Employees 4.7.1 All staff members shall be responsible for the following: S S S S S S Accepting responsibility and accountability of their own behavior; Report any safety incident/accident and/or hazard to the SRM department preferably via the online Safety Portal; Adorn appropriate PPE at all times; Assist in investigations when required by management; Learn and share safety information available on the Safety Bulletin Board and progress of hazard reports related to their areas of work; and Ensure the safety of others (such as visitors/clients/contractors) whilst they are on the organization’s premises.
CHP 5 - 10 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 4.8 Certificate Holders General Responsibilities 4.8.1 Certificate Holders shall be responsible for the following: S S S S S S S S S Continuous improvement of their safety performance in relation to the performance targets stated in this manual; Adopt safety requirements as per this manual into their systems; Address hazards, certification non­compliance issues in a timely manner; risks, audit and inspection findings and Ensure that all equipment are operational and meet performance requirements; the Ensure that every staff are appropriately trained to undertake their responsibilities; Provide the required Safety Data to MSRM on a monthly basis for analysis; Ensure that the relevant safety meetings (SAG and Safety Review Committee) are conducted as scheduled and attended by appropriate quorum; Carry out scheduled monitoring, audits and ad­hoc inspection; Ensure all staff members are encouraged to report any hazards and associated risks to the Safety & Risk Management unit through the available medium.
26 APR 18 Document Owner: MSRM CHP 5 - 11 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CHP 5 - 12 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 SAFETY COMMITTEE 26 APR 18 Document Owner: MSRM COVER - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK COVER - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 CHAPTER 6 - CONTENTS 1 1.1 1.2 1.3 1.4 1.5 1.6 SAFETY COMMITTEE .
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General Structure of the Safety Committee Responsibilities of the Safety Review Committee Responsibilities of the Safety Action Group Minutes Agenda .

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AFL 392 CHP 6-1 CHP 6­1 CHP 6­1 CHP 6­3 CHP 6­4 CHP 6­5 CHP 6­5 26 APR 18 Document Owner: MSRM CONTENT- 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CONTENT- 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1 SAFETY COMMITTEE 1.1 General 1.1.1 The objective of the safety committee is to provide a forum to discuss issues related to the safety performance of the organization and the health of the SMS.
1.2 Structure Of The Safety Committee 1.2.1 Committee is highlighted below: The structure and composition of the organisation’s Safety Structure &Composition of the Safety Committee 26 APR 18 Document Owner: MSRM CHP 6 - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 Each certificate holder is represented by their SAG 1.2.2 the reporting committee.

This SAG committee forms the basis of hierarchy.


Issues requiring management input are forwarded to the MSC mainly deals with the strategic issues in regards to safety.

1.2.3 The organization’s SAG committees are as follow: i) For Nadi Airport, the three SAG committees are: S S S Aerodrome SAG committee; ATSP/AIS/ATI SAG committee; and AMO SAG Committee.
ii) For Nausori Airport, there is only one SAG committee which includes Aerodrome, AMO and ATSP certificates; iii) For aerodromes served by AFIS, each aerodrome has a SAG committee.

All operational issues (i.e.

Aerodrome, ATSP, AMO, etc) shall be discussed by the committee.
All meeting minutes are required to be sent to the Operations Manager Outer­island Airports (OMOIA), CHOPS and MSRM for resolution; iv) The SAG committee for Rotuma, Labasa, Savusavu and Matei aerodromes shall be chaired by the relevant aerodrome Team Leader.

However, OMOIA shall attend the relevant SAG meetings at least once every four months.
v) For the other island airports, OMOIA shall ascertain daily inspection reports inclusive of hazards Annual refresher training shall be conducted to ensure currency of reporting requirements.
vi) The Chairperson for the relevant Safety Action Group committees are as follow: CHP 6 - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 S S S S S S Nadi Aerodrome – Manager Airside Operation; AMO Certificate – Manager ANES ATSP/AIS/ATI/SAR –CHOPS; Nausori SAG – APM Nausori; Airports (AFIS) – Relevant Team Leader; Airports (Non­AFIS) ­ OMOIA.
1.3 Responsibilities Of The Safety Review Committee (SRC) The SRC has a strategic role and deals with high level issues 1.3.1 in relation to policies, resource allocation and organizational performance monitoring while also monitors the effectiveness of addressing safety concerns.

1.3.2 exceptional circumstances dictate otherwise.


The SRC is required to meet at least four times a year unless 1.3.3 Key roles of the SRC are as follow: S Monitor the effectiveness of the SMS implementation; S Monitor that corrective actions are taken in a timely manner; S Monitors Safety performance against the SMS Safety Targets; S Monitor the effectiveness of the safety supervision of subcontracted operations; S Provide strategic direction to the SAG committees.
S Oversee operational Safety performance within the functional areas; S Assess the impact of any operational changes to the organisation's Safety Objectives; 26 APR 18 Document Owner: MSRM CHP 6 - 3 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 S S S S Progress of all current incidents/accidents reports; Progress of all current hazard/risk reports; The status of internal audit reports and actions taken; The status of non­compliance issues and actions taken.
1.3.4 on the following: During the SRC meeting, MSRM is required to provide a brief S S S S Status of hazard/incident reports; Safety Performance against the approved Safety Performance Target; Key Issues noted through the Safety Audits, hazard and Incident reports; and Non­compliance Findings (CAR) progress.

1.3.5 The Chairman of the SRC is the accountable Executive, however in his/her absence the Accountable Manager or designate shall take on the role.
All SAG chairpersons shall attend the committee meetings or send representative if not available.
1.4 Responsibilities of the Safety Action Group 1.4.1 All SAG committees shall meet at least once a month, preferably prior to the SRC meeting, with the objective of providing required assistance in regards to the timely closure of pending safety issues and monitoring of the following: S S S S Progress of certificate’s incidents/accidents and MOR reports and actions taken; Status of departmental hazards/risk reports and actions taken; Status of internal audit reports and actions taken; and Status of compliance issues and actions taken.
CHP 6 - 4 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1.5 Minutes 1.5.1 All minutes of the various safety committee meetings shall be properly documented and maintained by the respective Secretariats and a copy sent to the SRM unit.

The secretary should forward the draft minutes immediately to the Chairman or the designate after the meeting for approval to distribute.
The final minute shall be distributed to each member of the committee within 10working days after the meeting.

1.5.2 relevant Secretariats and should be available when required.

A copy of the meeting minute should be maintained by the 1.6 Agenda 1.6.1 All committee members should have the opportunity to submit potential items for the agenda to the Chairman.

The Secretary finalize the agenda in consultation with the Chairman.
The shall Secretariat should follow up with relevant parties on outstanding issues from previous meeting.
1.6.2 The agenda shall include but not limited to the following: S S S S S S S Review outstanding issues from previous meetings; Review hazards/risk register; Review accident/incident investigation reports; Review safety audits and action plans; Carryout/delegate risk assessment tasks on any new equipment or project; Staff safety training program; Safety Case/Assessment Report based on planned operational changes.

The agenda should be distributed at least 2 working days before the meeting.
26 APR 18 Document Owner: MSRM CHP 6 - 5 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CHP 6 - 6 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 SAFETY AND RISK MANAGEMENT 26 APR 18 Document Owner: MSRM COVER - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK COVER - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 CHAPTER 7 - CONTENTS 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 SAFETY AND RISK MANAGEMENT .
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General Hazard Identification Risk Assessment and Analysis Process Risk Mitigation/Treatment And Monitoring Process Owner Errors and Non­Compliance Management Non­Compliance Update and Closure Process Control of Contracted Activities .

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CHP 7-1 CHP 7­1 CHP 7­1 CHP 7­2 CHP 7­5 CHP 7­6 CHP 7­7 CHP 7­7 CHP 7­10 APPENDIX A APPENDIX B APPENDIX C APPENDIX D .

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APPEN -1 APPEN -10 APPEN -12 APPEN -15 26 APR 18 Document Owner: MSRM CONTENT- 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CONTENT- 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1 SAFETY AND RISK MANAGEMENT 1.1 General Aviation is an industry that faces numerous risks on a daily 1.1.1 that allows basis.
Risk Management It is impossible to continuous improvement of safety performance.

completely eliminate all risks; however, risk can be reduced to an acceptable level techniques.

Risk through risk management management comprises of 3 essential elements: is a decision­making tool S S S Hazard identification; Risk assessment; and Risk mitigation/treatment and monitoring.

Risk management serves to focus safety efforts on those 1.1.2 hazards posing the greatest requires the analysis and It risks.
elimination (or at least a reduction to an acceptable level) of those hazards that threaten the viability of an organization.

1.2 Hazard Identification 1.2.1 Hazard is a source of potential harm or injury to persons or the business.

These hazards shall be reported immediately as and when identified.
Refer to Chapter 8, para 2.1 for more detail on how to submit a hazard report; 1.2.2 It is imperative that all hazards are reported in order to analyze and identify any associated risks to our business for appropriate mitigation.

1.2.3 The opportune time to identify hazards at workplace is when staff are at their workstations.

The norm appears to be a quick glance at the outcome without realizing the reason for its existence.
For instance, rather than focusing on having a large flock of birds at the aerodrome we need to look behind why the birds are there.
For example, there could be a pool of water, a new (permanent or temporary) food source or a more suitable habitat; 26 APR 18 Document Owner: MSRM CHP 7 - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 1.2.4 The methods of identifying hazards are as follows: S S S S S Checklists and flowchart; judgments based on previous experience; Data analysis ; brainstorming meetings; System Gap analysis.
Existing hazards can either remain open on our risk register 1.2.5 pending action to close it or has been documented accordingly with necessary levels of controls in place which makes it acceptable.

1.2.6 that should be reported.

Refer to APPENDIX A for guidance on the type of hazards 1.3 Risk Assessment and Analysis Process 1.3.1 An important element of SMS is the assessment and analysis of all risks to determine their impact on the business and to identify mitigating actions required.
Each identified hazard undergoes a risk assessment to determine its potential consequences.

The risk assessment considers both the severity of the consequences and the probability of such an event occurring.

The consequences will determine the level of risk that a particular hazard will expose to the organization.
In assessing risks, the defenses that have been put in place to protect against the hazard need to be evaluated: S S S Defenses if not implemented will result in the continued existence of the risk.

If the risks are acceptable, the operation shall continue.

If the risks are unacceptable, then steps (mitigating actions) should be taken to reduce the risk by attacking the hazard.
The level of acceptable/unacceptable are determined using the risk matrix contained under APPENDIX B. CHP 7 - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1.3.2 On receipt of a report via the Online Safety Portal, the Safety Data Coordinator (SDC) from the SRM team shall validate the report by filling in any requirements that may be missing and assign the report to the relevant QASO (ATM, ANES or SRM) who is required to conduct an independent risk assessment.
Once submitted, the report will be referred automatically to the assigned manager for mitigation.

Provided is the flowchart in regards to hazard report handling.
1.3.3 Safety Data Coordinator Responsibilities: S S S Receives and process all safety related reports (MOR, Incident, Hazard reports or Audit report) received via the Online Safety Portal Database (OSPD); For all reports received (Hazard, MOR/Incident Register or Compliance Report), log and validate all relevant report details in the OSPD­ before it is sent further through our reporting process; The SDC shall continually check his/her dashboard for any pending reports that needed processing.
E­mail alerts on pending issues must be attended to as soon as practicable; S Once the process owner has implemented the proposed recommendations the SDC is required to request the relevant QASO to confirm closure before the report is closed; S Prepare summary of all reports to be presented to the relevant Safety Committee meeting on a monthly basis; S Once confirmed closed by the relevant QASO, the SDC shall: i) Update the Reporter accordingly (if name is known); ii) Update the Risk Register and the Hazard Report form; and iii) File records accordingly.
S S S All copy of any e­mail correspondence must be printed and attached to the relevant online report as an update; SDC shall brief MSRM including the SRM team on the detail and progress of all Safety reports received at the beginning the week; An alert shall be sent to all responsible manager at the beginning of the week, which details the number of pending issues, etc seeking their updates.
26 APR 18 Document Owner: MSRM CHP 7 - 3 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 1.3.4 Viewing Existing Hazard and Progress: S To view existing hazards and their progress, go to the link http://10.99.100.29/srm/index.html and click on the green button that says “Report a Hazard”.

S Scroll down to the “view existing hazards” block and search for the hazard by keywords such as Id, status, airport or any other description of the hazards.
Click on “progress“ to view the status of the report.

CHP 7 - 4 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1.4 Risk Mitigation/Treatment And Monitoring 1.4.1 Typically, there is a range of risk control measures that may help limit exposure to identified risks.
Except where circumstances exist clearly preventing such an outcome, all hazards/risks mitigation should be treated in the following hierarchy: i) Eliminate the hazard/risk completely ­ Total removal of the risk/hazards; ii) Substitute ­ Use different material/process/method to improve risk level; iii) Isolate ­ Isolate employees from the high risk area or enclose the hazard through the use of guards or barriers; iv) Engineering ­ This includes the followings: S S S Design: try to ensure that hazards are 'designed out' when new materials, equipment and work systems are being planned for the workplace; Remove: the hazard or substitute less hazardous materials, equipment or substances (for example lift smaller packages or use a less toxic substance); Adopt a safer process: alterations to tools, equipment or work systems can often make them much safer.
v) Administrative controls ­ Establish appropriate administrative procedures such as: S S S Job rotation to reduce exposure or boredom; or timing the job so that fewer workers are exposed; Routine maintenance and housekeeping procedures; and Training on hazards and correct work procedures.
26 APR 18 Document Owner: MSRM CHP 7 - 5 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 vi) Personal protective equipment ­ Provide suitable and properly maintained personal protective equipment and training in its use.

Relying on personal protective equipment is the least acceptable control measure.

It should be used as an interim measure until a more reliable solution can be implemented with other controls.

1.4.2 of any of the methods above.


Often the most effective control of risk involves a combination 1.4.3 Each risk control option needs to be evaluated, the residual risks need to be assessed and the cost­benefits need to be analyzed.

Having decided upon a course of action, management must then communicate its safety concerns and planned actions to all affected persons.

1.4.4 Mitigating actions should be fully analyzed to ensure that they address the root cause of the hazard.
It may be beneficial to explore a range of mitigating strategies before choosing the preferred option, basing the decision upon factors such as timeliness, cost, organizational capabilities, and overall effectiveness.

It is essential that management provide adequate resources to address the identified safety concerns.
1.5 Process Owner 1.5.1 The process owner shall be responsible for the following: S S S S S Timely implementation of recommended corrective actions in accordance to the approved timeline below; Provide weekly updates via the OSPD in order to track progress made online; Seek timely assistance from the relevant manager if the report is not clear or assistance required; Notify implemented; the SDC when the corrective actions have been The approved timeline on the required response from the Process Owner shall be based on the following risks level: Level of Risk Required Responses High Medium Low Provide updates within 1 week Provide updates within 2 week Not necessary be but should provide comments within 3 weeks if required.
Management Level Executive Department Managers Operational Level CHP 7 - 6 Document Owner: MSRM 5 JAN 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 Once the process owner has confirmed the implementation 1.5.2 of the corrective action, the SDC in consultation with the relevant QASO is required to verify and close the issue accordingly.
1.6 Errors and Non-Compliance Management 1.6.1 Errors are consequences of the safety system defenses failing to prevent a situation, and most genuine errors must be reported; S S All certificated areas are required to report any errors of which they become aware, to the Manager Safety & Risk Management or any of the Safety Officers using the available means of safety reporting; Any Occurrences which may lead to the degradation of flight safety must be reported to the regulator, CAAF within 96 hours using the MOR form.
1.6.2 aviation related regulations and Standards Documents.

Non­compliance refers to our operation’s violation of ICAO or 1.7 Non-Compliance Update and Closure Process 1.7.1 Step 1 – New Findings & Responses: S S New Findings are normally highlighted by the regulator after their annual renewal certification audit within a month before the certificate expires.
These new findings are normally communicated to the Accountable Manager and the relevant certificate manager with a requirement to respond within seven (7) working days from the date it was received; Upon receiving the audit the relevant certificate team shall meet and instigate their responses in relation to the individual finding; findings from CAAF, 26 APR 18 Document Owner: MSRM CHP 7 - 7 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 S S S The responsible certificate manager in consultation with his/her team shall provide a realistic action plan with target date that would close off the finding within the required time of closure; The required time of closure shall be based on the level of risk assigned.
For instance Level 1 is required to be addressed within 7 working days, Level 2 within one month and Level 3 within three months; Should the finding be CAPEX related and cannot be addressed within the required time of closure, a safety case shall be prepared accordingly to demonstrate the controls that are or will be in placed to achieve an acceptable level of safety; S Once the audit findings responses have been finalised, a copy shall be sent to the Certificate Accountable Manager/General Manager and MSRM for their information before it is sent to CAAF; S S A copy signed by the responsible Manager and the Accountable Manager/General Manager should be delivered to CAAF within the required seven working days; All new compliance issues shall be entered onto our Safety portal Database dy the SDC once the final list is received.
1.7.2 Step 2 – Implementation of Action Items: S S S This can be related to new audit findings or on­going audit findings.

Once the responses have been communicated and accepted by the regulator, the relevant certificate through the SAG committee shall monitor the progress of all agreed action items on a monthly basis; At the department level, the identified responsible person shall work towards fulfilling the agreed action items mentioned in the certificate’s audit responses.
This needs to be monitored by the relevant department manager; The Safety & Risk Management is required to flag the responsible person on items that are nearing expiry at least 3 weeks prior; CHP 7 - 8 Document Owner: MSRM 26 APR 18 Issue 5 S AIRPORTS FIJI LIMITED SMS MANUAL Date of Issue: 26 APR 18 AFL 392 Should an item remain open after the agreed target date for closure, the responsible manager in discussion with his/her team shall be required to validate the action items including the corresponding target dates immediately after it expired.
Reason for the extension should also be stated by the responsible manager.

This shall be communicated accordingly to MSRM and the Accountable Manager for their necessary input and information before meeting CAAF further to discuss the update; S Managers shall ensure that the update provided to CAAF are captured using the “Compliance Update Form”; S All compliance updates shall be provided by the responsible manager via the Safety Portal Database on a weekly basis or when an update is made.
1.7.3 Step 3 – Closure and Communication: S S S S S Immediately after an action item has been completed, the responsible manager shall facilitate its closure with CAAF using the “Compliance Update Form” (Refer to APPENDIX C); Required evidence for closure must be attached to the form and submitted to the Accountable Manager/GM for signing before it is submitted to CAAF; Should CAAF agree to close off the issue; the responsible manager shall ensure that the form is signed off as closed by the regulator; After closure, the relevant manager shall forward all signed and completed copies of the “Compliance Update Form” to MSRM.
record Upon receiving the update, SRM shall update their accordingly including the closure of issue in the Online Safety Portal; Progress of all certificates non­compliance is required to be provided to the Board every 3 months.
26 APR 18 Document Owner: MSRM CHP 7 - 9 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 1.8 Control of Contracted Activities 1.8.1 All contracted activities must be controlled in a manner that ensures that the affected services or facilities are returned to normal as soon as reasonably practical.
All relevant certificates are required to establish a process 1.8.2 that ensures that all contractors operating under their jurisdiction are given the proper level of assistance in terms of information and personal protective equipment.

This is to ensure that the contractors do not create any risk to our operation during the conduct of their approved work.
1.8.3 As a minimum, the following shall be included: S S S S S S Conduct a Safety Case of the contractor’s proposed Method of Work Plan to determine any potential source of risks using an acceptable Risk Treatment Plan Form (refer to APPENDIX D).
Corrective actions must be agreed to between the contractor, the responsible line manager and MSRM; In case the contractor is required to enter restricted areas, proper security clearance and briefing are to be arranged; In case the contractor be required to enter airside, proper airside permit (including permits and/or NOTAM) and safety briefing are to be conducted; A full time officer is required to accompany the contractors to ensure that all safety requirements are met; Special permit conditions should be developed if a contractor is going to be involved in Hot Work, Excavation duties, Asbestos removal, Height work and other high risk duties identified by the relevant certificates; Conduct review or audit after work to determine whether all the requirements were complied with.
CHP 7 - 10 Document Owner: MSRM 26 APR 18 L F A 2 9 3 8 1 R P A 6 2 : & m?
& / M A E/ A t r o p e r a e t a i t i n I l e g d e w o n k c A .

1 t r o p ; e r l i a t e d g o L .
2 e v i t c e r r o C d n e m m o c e R 2. e n i l e m i t n/ o i t c A k s R i t c u d n o C 1 Reporter Coordinator SafetyData QASO RiskOwner 1 1 - 7 P H C M R S M : : - & & & / .
s e u s s i F A A C n ) s n( a P n o i t c A d ?
& s e Y t e g r a T & ( s m e t i i g n d n a t s t u o ) s g n d n i f i y p o c & ' : r e n w O t n e m u c o D 2 1 - 7 P H C CAAF CertificateTeam SRM AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 APPENDIX A: HAZARD CHECKLIST HAZARD CHECKLIST for AERODROME SMS Aerodrome Name: ___________________________ (Refer to SMS Chapter 6 section 6.2 for information about the use of this Hazard Checklist) This listing is indicative only, there may be other hazards on your aerodrome which you need to record for future use.
Hazard No: F F­1 Hazard Cause of Hazard Aerodrome Facility Facilities do not meet legislated or safety requirements Applicable standard not being adopted Current legislation or standard references not available Consequence of Hazard Aircraft accident/incid ent or Illegal inappropriate operation into aerodrome checklist inspection Inadequate and schedules Poor quality of materials and maintenance Poor construction installation Inadequate training to assess deficiencies design, and A A­1 Aerodrome Administration Unsafe or poorly operated aerodrome environment No formal structure Lack of human and other resources Lack of management commitment staff and 26 APR 18 Document Owner: MSRM APPEN - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 Poor understanding of responsibilities Lack of training No clear reporting Outdated contact details lines of E E­1 Aerodrome Emergency Plan Inability adequately respond emergency to to an appropriate of Lack documented procedures Loss of life of Poor distribution current procedures Lack of communications appropriate Damage infrastructure Enforced closure aerodrome to of of accident testing of the through review of Lack procedures existing through regular meetings, of after an or actual incident Lack of procedures exercises Lack of availability of equipment and personnel to combat an emergency situation Response agencies not being familiar with the aerodrome environment Remoteness of aerodrome for response from agencies Contact details out of date L L­1 Aerodrome Lighting Failure of lighting system Inadequate lighting for activity Aircraft accident/incid ent APPEN - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 Restriction to operations Full or partial closure of aerodrome Diversion flights of Lack o knowledge of standards applicable Below non­conforming facilities provided.
Poor maintenance standard appropriate Lack of checklist and maintenance schedules Unqualified or untrained conducting personnel maintenance.

Environmental conditions deteriorating lenses, equipment sensitive cables, equipment Infrequent serviceability inspections and poor reporting and remedial action arrangements Inadequate maintenance of records to detect trends.
R R­1 Aerodrome Reporting Aircraft operations being exposed to unreliable conditions Incomplete or incorrect information relating to the published aerodrome information Accidents/Inci dents the Operational restrictions Lack of review of documented information Information not reported Diversions Inadequate training of responsible personnel for reporting arrangements Contact details outdated the 26 APR 18 Document Owner: MSRM APPEN - 3 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 U U­1 S S­1 Unauthorized Entry Aerodrome Potential movement incursion Security threat to area Poor procedures documented Accident/incid ent Disruptions to operations Infrastructure damage of adequate Lack availability of facilities to prevent access either by humans or animals Lack of adequacy and suitability of resources No follow­up actions taken where security breaches are detected Poor procedures surveillance Aerodrome Serviceability Inspections Potential unsafe aerodrome facilities conditions and Inadequate timing of the inspection Accidents/inci dents Disruption to operations Closure movement area/s of serviceability Poor inspection checklist Inadequate training of responsible personnel for inspection the process Poor record availability of inspections to detect trends Outdated arrangements Lack of communication Lack of commitment by responsible personnel for inspection the function appropriate Lack equipment to carry out the inspection Lack of remedial action and follow­up contact of APPEN - 4 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 T T­1 Aerodrome Technical Inspections Potential non­compliant operation facilities Inspections not carried out to the required frequency of Accidents/inci dents Failure facilities of of Closure facilities Suspension of aerodrome certificate Unqualified personnel carrying out the various inspection functions Inadequate inspection processes Inspections not carried out in accordance with the checklists Poor reporting of inspection findings Aerodrome operator not following on inspection findings and or recommendations the up W W­1 aviation Aerodrome Work Safety Unsafe operations.
Potential accidents/incident s training of Lack of personnel associated with the works function left strip Poor planning of works Heavy aircraft schedules Poor communications Potential runway/runway incursions Facilities not in a safe condition after a completed session of works Inadequate procedures for the marking of the designated works site.

Poor marking of works equipment Poor identification of the works safety officer.
the 26 APR 18 Document Owner: MSRM APPEN - 5 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 P P­1 Parking Aircraft Control Potential aircraft damage P­2 Ground services equipment damage P­3 Passenger safety P­4 Jet Blast V V­1 Vehicle Airside Control Vehicle/mobile equipment accidents V­2 Incursions Congestion due to poor apron parking planning and layout Inappropriate provision of wingtip clearances for aircraft type Poorly apron arrangements operators Lack of ground staff Lack ground markings maintained parking to adequate training to of of adequate Poor design Poor Training Lack ground markings Lack of supervision Poor design Lack of consultation with the aircraft operators Poor design Inadequate protection to passengers and public Lack of knowledge Excessive speed Poor visibility Unsafe vehicle Complacency Poor procedures Lack of supervision Lack of training Lack of knowledge documented in Lack of/fault communications equipments Lack of supervision Injury/loss of life Damage/cost Aircraft accident Disruption to operations APPEN - 6 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 V­3 Unsafe operating airside vehicles Lack of maintenance Conspicuity Non standard Uncontrolled authority to operate airside B B­1 O O­1 Bird and Animal Hazard Management Bird/Animal strikes of Lack adequate surveillance procedures harassment Poor procedures/techniques Lack of appropriately trained staff Lack appropriate harassment equipment Unidentified problem sites of Obstacle Control Protected airspace penetration Accident Lack of knowledge of airspace protected requirements Accident of of of, adequate appropriate poor with height Lack planning of Lack surveillance Lack or communication industry limitations of Lack information about the location of structure Lack of marking and lighting of structure Lack of monitoring and maintenance of penetrating structure 26 APR 18 Document Owner: MSRM APPEN - 7 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 D D­1 H H­1 Disabled Aircraft Removal Hazard movement area the on the to aircraft Lack of equipment remove (obstacle) Insufficient remaining runway for continued operations Non reporting of the obstacle on the runway Handling Hazardous Materials Hazardous material contained of not Fuel spill Fire Contaminatio n of environment by hazardous materials Death/injury damage to plant/equipme nt Biological escape material Toxic chemical leakage Lack of/poor procedures Non­adherence procedures Fuel spill to Lack procedures Non­adherence procedures of/poor to Encroaching restricted areas.
into H­2 Fire NA NA­1 Protection of Navigational Aids Unserviceable equipment for aircraft operations Unauthorized maintenance or digging in vicinity of aid Lack appropriate of security measures – fencing, signs Excessive growth obstacle.
vegetation other or APPEN - 8 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 LV LV­1 Visibility Low Operations Aircraft accident Runway incursions N N­1 Notified in FIJI AIP Unsafe aircraft operation, potential damage aerodrome to facilities OH OH­1 SMS SMS­1 Other Hazards Safety Management System Hazards Safety does not identify or treat safety risks of of adequate Lack documented procedures Lack appropriate training for personnel conducting the assessment Poor communications between assessor and ATC Lack of procedures Poor communications Poor of appropriate supervision adequate lack or Incorrect operational data published reporting Inadequate training of personnel Inadequate arrangements Inadequate documented procedures/checklist Poorly SMS documented Poor understanding of SMS 26 APR 18 Document Owner: MSRM APPEN - 9 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 APPENDIX B: RISK MATRIX Risk Matrix for Safety Management System The Risk Matrix below consists of 3 tables and each table is used as follows: S S S The "Risk Matrix Table" provides a matrix to derive a numerical risk value for each hazard identified.
The "Overall Risk Table" provides a guide to the classification of the overall risk as Low, Medium orHigh.

The "Consequence and Likelihood Descriptions" provide definitions relevant to each of the numerical consequence and likelihood values.
Risk Matrix Table Likelihood Catastrop hic Frequent Occasional Remote Improbable Extremely Improbable 5 4 3 2 1 A 5A 4A 3A 2A 1A Risk Severity/Consequences Hazardous Major Minor Negligence B 5B 4B 3B 2B 1B C D 5C 4C 3C 2C 1C 5D 4D 3D 2D 1D E 5E 4E 3E 2E 1E APPEN - 10 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 Overall Risk Table Risk level Urgency of Action under the Unacceptable existing circumstances.

Immediate action required.


Response is expected within 1 week.

as Action practicable.

expected within 2 week.

as Response is soon Level of Management Action Accountable Executive/General Managers Managers High Risk (5A, 5B, 5C, 4A, 4B, 3A) Medium Risk: (5D,5E,4C,4D ,4E,3B, 3C,3D,2A,2B, 2C,1A) Low Risk (3E,2D,2E,1B ,1C,1D,1E) by Managed routine procedures, and can be accepted with no action.
As appropriate 26 APR 18 Document Owner: MSRM APPEN - 11 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 Consequence and Likelihood Descriptions Table Likelihood Description Likelihood Severity/Consequences Description Severity Meaning Value Value Frequent 5 Catastrophic Meaning Likely to occur many times (has occurred frequently) Occasional to Likely occur sometimes (has occurred infrequently) 4 Hazardous A B Equipment destroyed Multiple deaths large in A reduction safety margins,phys ical distress or a workload such thatthe operators cannot be relied upon to perform their tasks accurately or completely — Serious injury Major — equipment damage APPEN - 12 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 Remote to but Unlikely occur, possible (has occurred rarely) 3 Major C A in — significant reduction safety margins, a reduction in the ability of the operators to cope with adverse operating conditions as a result of increase in workload, or as a result of conditions impairing their efficiency — Serious incident — Injury to persons — Nuisance — Operating limitations Improbable Extremely Improbable Very unlikely to occur (not known to have occurred) Almost inconceivabl the e that event will occur 2 Minor 1 Negligible of D — Use emergency procedures — incident Minor Little consequence s E 26 APR 18 Document Owner: MSRM APPEN - 13 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 APPENDIX C: COMPLIANCE UPDATE FORM COMPLIANCE UPDATE FORM SECTION A – To be filled by Department Managers Month/Year Airport Description Compliance Item of Supporting Documents the Is attached?
supporting document(s) Yes This can include photographs or manuals, procedures, plans etc as evidence of the actions taken.

No Date First Reported Action (s) taken so far or planned Completion Target Date Name Signature Designation Date SECTION B – To be filled by the Accountable Manager(Items with expired target dates only) Name Signature Comments SECTION C – Verification by CAAF Date Date Received Name Designation Compliance Status?
(Closed/Open) Other Comments SECTION D – To be filled by Safety& Risk Management Unit Date Received Name Master Compliance List Updated?

(Y/N) Rev 5.0 Issue Date: 9th Dec 2016 Designation Form No: AFL393­06 APPEN - 14 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 APPENDIX D: RISK TREATMENT PLAN Risk Treatment Plan Hazard Description: Date Raised Risk ID Risk Context(Effect/How it can happen?)
Initial Rating Risk Risk Consequence:Risk Likelihood: Risk Level: Recommended Actions: Target Date RESIDUAL RISK AND TREATMENT Risk Likelihood: Risk Consequence: Residual Risk Rating: Residual Risk Status: RISK OWNER AND REVIEW DATE Risk Owner: Signatory : Comments: Risk Status: Date : Rev 3.0 Issue Date: 9th Dec 2016 Form No: AFL393­06 26 APR 18 Document Owner: MSRM APPEN - 15 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK APPEN - 16 Document Owner: MSRM 5 JAN 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 REPORTING SYSTEM 26 APR 18 Document Owner: MSRM COVER - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK COVER - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 CHAPTER 8 - CONTENTS 1 2 REPORTING SYSTEM .
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1.1 General MODE OF REPORTING Confidential Hazard & Incident Report Form Accident And Incident Reporting Reporting Review Process .

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2.1 2.2 2.3 AFL 392 CHP 8-1 CHP 8­1 CHP 8-2 CHP 8­2 CHP 8­3 CHP 8­4 APPENDIX A .

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APPEN- 1 26 APR 18 Document Owner: MSRM CONTENT- 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CONTENT- 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1 REPORTING SYSTEM 1.1 General 1.1.1 Reporting system is a formal means of collecting, recording, acting on and providing feedback to staff about hazards and risks to our operation.
Any hazard or risk which has the potential to cause damage or injury or which threatens business operations and viability should be reported.

1.1.2 All records produced shall be legible, identifiable, traceable to the activity, and where staffs are submitting the information.

Reported risks are those that have been identified and can be managed.

Unreported hazards and risks are difficult to identify and therefore to fix.
The company supports and encourages the open reporting and communication of hazards, incidents and accidents by having: S S S Non­punitive, confidential hazard reporting systems; Formal and informal meetings to discuss safety concerns; Feedback from management about action taken as a result of hazard reports or safety meetings.
1.1.3 information from staff about hazards in our organization, including: Both formal and informal processes are used to gather S S S S S Confidential Hazard & Incident Report Forms; Safety Audits using Hazard Checklist; Verbal; E­mails; Confidential surveys or questionnaires of staff; S Observations/Inspection of work practices and work flow.

1.1.4 problems and not punishing people.


All information should be accepted with the aim of fixing 26 APR 18 Document Owner: MSRM CHP 8 - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 2 MODE OF REPORTING 2.1 Confidential Hazard & Incident Report Form 2.1.1 The use of the Online Confidential Hazard & Incident Report form is the most preferred way of reporting.

The Online Hazard/Incident Report Form is to be used to report any hazard, risk or occurrences that had happened.
2.1.2 To access the online Hazard/Incident Report form, go to the link “http://10.99.100.29/srm/index.html” and click on the green button that says “Report a Hazard”.

2.1.3 Select the airport of concern, enter the hazard description, upload a file if necessary, enter your name, email & phone contact and click on “submit”.
CHP 8 - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 2.1.4 Should the staff cannot access the form online, the reporter is encouraged to relay the details of their report to the SRM department using any of the following: S S S S Direct Line: 9906526 / 9987064; Verbal: Telephone extensions – 6724, 6482, 6492 or 6484; Email: SafetyandRisk@afl.com.fj ; or Fax No: 6732383.

2.1.5 management, customers or passengers and external contractors.
Hazards, incidents or accidents can be reported by staff, 2.1.6 the SDC before it is referred further for mitigation.

The reported information is required to be fully validated by 2.2 Accident And Incident Reporting All accident and incident 2.2.1 related to safety of aircraft operations shall be reported to CAAF in accordance with the Mandatory Occurrence Report (MOR)reporting process stipulated in section 71 of the ANR 1981, as soon as practicable, but within 96 hours of the occurrence.
2.2.2 Where different units within AFL are involved, coordination shall be carried out to determine the unit ultimately responsible for filing the MOR.

In cases where the matter is reported to ATC, ATC shall be responsible for filing the MOR with CAAF.

A copy of the MOR form shall also be dispatched to the SRM section at the time the report is sent to CAAF.
2.2.3 designate shall review the details of the report, and forward: For every incident or accident reported to SRM, MSRM or his S S to CAAF, within 96 hours, through the MOR Form if such a report falls within then ambit of section 71 of the ANR 1981 and has not been sent to CAAF; to the relevant process owner to carry out the required investigation and provide feedback to MSRM within 2 weeks.
26 APR 18 Document Owner: MSRM CHP 8 - 3 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 2.2.4 be any of the following: A responsible person, in relation to reportable matters, can S S S S S S S a person providing Air Traffic Information within the Nadi Flight Information Region; a person performing a dedicated aerodrome rescue or firefighting service in relation to the aircraft; a person providing ATM facilities technical support services; a member of the ground handling crew in relation to the aircraft; an aircraft pilot; a member of the staff of the Civil Aviation Authority of the Fiji; the operator of an aerodrome.
2.3 Reporting Review Process 2.3.1 The Manager Safety & Risk Management and Safety Officers are responsible for the review of reports of hazards, potential hazards, incidents and accidents.
The review shall ensure that: S S S S Each report is reviewed to determine whether it was dealt with efficiently and effectively; A log is maintained reflecting the status of all reports; Reports are reviewed to identify any trends in the types of hazards identified; Feedback is provided about the risk management process or the error management system to the submitter of a report.
the reporting system, CHP 8 - 4 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 APPENDIX A: ONLINE HAZARD/INCIDENT REPORT FORM Site: http://10.99.100.29/srm/pages/submitforms/hazardreport.php 26 APR 18 Document Owner: MSRM APPEN - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK APPEN - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 TRAINING AND EDUCATION 26 APR 18 Document Owner: MSRM COVER - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK COVER - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 CHAPTER 9 - CONTENTS 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 TRAINING AND EDUCATION General Training Aims Training Requirements Training Programs & Records Safety Induction Recurrent Training Review Of Training Effectiveness .
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AFL 392 CHP 9-1 CHP 9­1 CHP 9­1 CHP 9­1 CHP 9­2 CHP 9­2 CHP 9­3 CHP 9­4 APPENDIX A APPENDIX B .

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APPEN -1 APPEN -2 26 APR 18 Document Owner: MSRM CONTENT- 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CONTENT- 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1 TRAINING AND EDUCATION 1.1 General 1.1.1 Training and education forms a critical element in the bridging of ideal safety requirements with the level of knowledge that exists across the organization.
Without training our SMS initiative will just be a paper exercise that fails to influence “how things are done” both on the floor and the management level.

1.2 Training Aims To ensure that all staffs are properly trained in the purpose of 1.2.1 the company Safety Management System and in their role in applying it to the way we do business.

The safety training aims shall be communicated to all staff during the awareness program.
1.3 Training Requirements 1.3.1 following: The relevant certificate areas are required to facilitate the S S S S S A training program for the department to ensure all operational staff is competent to carry out their role safely.
The training program shall include operational and safety training; A training program that meets the regulatory requirements of attaining/ maintaining a valid license; Attendance of all operational staff members on the AFL Corporate Safety Management System awareness training once every two years; Attendance of SAG members and operational line managers on the full 2 days SMS course based on the AFL SMS Manual and other references materials once every 2 years; Attendance by all other staff members on the one day SMS course upon recruitment (induction) and recurrent training every 2 years thereafter; 26 APR 16 Document Owner: MSRM CHP 9 - 1 Issue 5 S AIRPORTS FIJI LIMITED SMS MANUAL Date of Issue: 26 APR 18 AFL 392 In the event that amendments are made to the process and procedures contained in the SMS Manual, communication to all staff via the Safety Bulletin Board and staff briefings prior to the amendment becoming effective.
Where applicable, update training shall be conducted.

1.4 Training Programs & Records 1.4.1 MSRM is required to inform all relevant certificate areas on the company's safety management training program at the beginning of the year.

1.4.2 In turn, the relevant line managers through the Human Resources Department shall inform MSRM on the list of their staff who will require safety management training.
Details of participants on SMS training shall be recorded in 1.4.3 the "Training Register for SMS" (refer to APPENDIX B).

This shall be maintained by MSRM.

1.4.4 All safety related trainings are required to be recorded, using the "Training Record for SMS" (refer to APPENDIX A) and maintained by the relevant line manager.
This should capture: S S S the name of each staff member who received the training; the results (if any) of an examination that was part of the course; and the date on which the course was concluded.

1.5 Safety Induction 1.5.1 The Manager Safety & Risk Management shall conduct induction training for all new operational staff.

Where relevant, this training shall be customized to suit staff member specialist areas.
It shall include, but not limited to the following: S S the Safety Management System; how the Safety Management System is advertised throughout the company; S What is the company Safety Policy, and how does it affect you?
CHP 9 - 2 Document Owner: MSRM 26 APR 16 AIRPORTS FIJI LIMITED SMS MANUAL Date of Issue: 26 APR 18 AFL 392 the Safety Management System principle of anonymous reporting of hazards without fear of reprisals; Accountable Manager’s role; Issue 5 S S S Manager Safety & Risk Management roles and responsibilities; S Confidential Hazard & Incident Reports and the reporting of incident and accidents; S What is risk assessment and how is it done?
S S the roles of the Safety Committee; the responsibilities of all employees in the Safety Management System.

1.6 Recurrent Training 1.6.1 The Manager Safety & Risk Management or designate is responsible to ensure that all staff receives relevant recurrent training.

Recurrent training will be based entirely on the AFL SMS 1.6.2 manual and other changes to ICAO and the CAAF SMS requirements.

For SAG Members and line managers a full 2 days training shall be conducted as part of recurrent training.
This shall be undertaken every 2 years preferably after the amendments of the SMS Manual.

1.6.3 For operational staff, a one day training to cover the following shall be conducted as part of recurrent training after 2 years.
It shall include, but not limited to the following: S S S S S Safety Management System Overview; Safety Policy and Objectives; Compiling and submitting Confidential Hazard & Incident Reports, and reporting incidents and accidents; The responsibilities of all employees to participate in the Safety Management System; Safety and Risk Management; 26 APR 16 Document Owner: MSRM CHP 9 - 3 AIRPORTS FIJI LIMITED SMS MANUAL Date of Issue: 26 APR 18 AFL 392 Safety concerns for our operation for the past few months; and Safety Data Performance and Monitoring.
Issue 5 S S When new technology or equipment 1.6.4 is introduced, or changes made to aerodrome operations (with an impact on safety), training will be provided.

1.7 Review Of Training Effectiveness 1.7.1 At the conclusion of each training course, an evaluation is required to be facilitated by the instructor to determine the effectiveness of the training as evaluated by the participant.
The Instructor shall evaluate the effectiveness of 1.7.2 the company training programs by the use of training feedback sheets that are designed to measure: S S S How well staff understand the operation of the Safety Management System; How well staff are aware of the role they play in the Safety Management System; and How much staff understands that the Safety Management System is to improve safety, and not to attribute blame.
the aim of 1.7.3 The Manager Safety & Risk Management shall monitor training records for any required personnel who have not attended induction or ongoing safety training, and coordinate their attendance to the next relevant course.
1.7.4 As a simple means of determining the effectiveness of the safety training provided, MSRM should maintain a watching brief on the following: S S S The trend in the volume of hazards reported (a growing trend in hazards reported may indicate staff acceptance of the concept); Safety Survey responses improvements compared to previous year; and Feedback received through the training evaluation form.
CHP 9 - 4 Document Owner: MSRM 26 APR 16 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 APPENDIX A: TRAINING RECORD TRAINING RECORD Name of Aerodrome Title of Course Location Date of Course Attendees _________________________ Signature Name of Trainer (Print) Signature of Trainer Date Issue Date: 9th Dec 2016 Rev 2.0 Form No: AFL 393­04 26 APR 18 Document Owner: MSRM APPEN - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 APPENDIX B: TRAINING REGISTER TRAINING REGISTER of Name Staff Safety Induction Staff Member Signature Rev 2.0 Issue Date: 9th Dec 2016 Form No: AFL393­05 APPEN - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 AUDITING AND INVESTIGATION OF INCIDENT/ACCIDENT 26 APR 18 Document Owner: MSRM COVER - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK COVER - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 CHAPTER 10 - CONTENTS AUDITING AND INVESTIGATION General Auditing Requirements .
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AUDIT PROCEDURE Purpose Introduction SMS Internal Audit Process .

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AFL 392 CHP 10-1 CHP 10­1 CHP 10­1 CHP 10-2 CHP 10­2 CHP 10­2 CHP 10­2 INCIDENTS AND ACCIDENTS INVESTIGATION General Purpose of Investigation Investigation Process Corrective Actions Actions Against Safety Violation .

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CHP 10-14 CHP 10­14 CHP 10­14 CHP 10­15 CHP 10­17 CHP 10­17 1 2 3 1.1 1.2 2.1 2.2 2.3 3.1 3.2 3.3 3.4 3.5 APPENDIX A APPENDIX B .

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APPEN- 1 APPEN- 3 26 APR 18 Document Owner: MSRM CONTENT- 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CONTENT- 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1 AUDITING AND INVESTIGATION 1.1 General An audit is a systematic examination, 1.1.1 formal and independent planned review of our routine operational functions against a set of predetermined criteria.
A safety audit compares the stated objectives and operating procedures with the actual work practices.Safety audits will be part of the annual assessment plan for all functional areas.

This includes Air Traffic Management, Aerodrome operations and Technical/ Maintenance departments.

1.1.2 The safety audit of the relevant certificate will be conducted annually or as and when required.

Items requiring action or response will be identified along with the responsible person or area expected to take action.
Reports and responses will be reviewed by the Manager Safety & Risk Management.

1.1.3 ensure that an audit program for the SMS is in place.

The Manager Safety & Risk Management is responsible to 1.2 Auditing Requirements 1.2.1 The SRM department is required to conduct safety audits to ensure that every parts of our operation are critically examined with an objective to identify strengths, weaknesses (areas of risk) and areas of improvement.
This is primarily done through a series of audits on all areas of our operations based on the approved annual SMS audit program.

1.2.2 An annual audit program/schedule will be prepared by the Manager Safety & Risk Management at the beginning of the year and communicated to all relevant Managers and General Managers for their necessary preparatory.

The Manager Safety & Risk Management is responsible to ensure that all safety audits are performed as planned out in the annual audit program.
On the other hand, Controller Safety, Search and Rescue 1.2.3 (CSSAR) based at the ATM and ANES department shall be responsible for the safety auditing of their relevant operations.

For QASO ATM, scope of audit should include ATI, SAR and AISP certificate.

The two units (ATM & ANES) shall provide their annual audit schedule and audit report to MSRM both the initial and follow­up audit.
26 APR 18 Document Owner: MSRM CHP 10 - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 The Manager Safety & Risk Management 1.2.4 through the relevant QASO, when conducting the audit, shall consider previous audit reports including recommendations and action plan.

1.2.5 Auditing Procedure contained under Para 2 below.
All SMS audits shall be conducted in accordance with the 2 AUDIT PROCEDURE 2.1 Purpose 2.1.1 To provide guidance on the required steps to be taken during any SMS internal audit to ensure that the audit process is carried out in a formal and systematic manner.

2.2 Introduction SMS audit is one of the principal methods for fulfilling the 2.2.1 safety performance monitoring functions.

SMS audits shall be conducted by the SRM team at least once a year .
External audit will also be conducted by the Regulator normally during their certification renewal audit.

This procedure shall apply to all SMS internal audits.

2.3 SMS Internal Audit Process 2.3.1 followed when conducting an internal SMS audit: Below is the overview of the audit process that shall be Step 1: Initiating the Audits S S S S Audit Request; Appointing of a lead auditor; Defining Objectives, test steps, criteria, scope and duration of the audits; Establish the audit team.
CHP 10 - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 Step 2: Conducting Document Review S Review relevant management system documents including records and determine adequacy.

Step 3: Preparing for the On-site audit activities S S S Preparing the audit plan; Assigning work to the audit team; Preparing work documents.
Step 4: Conducting On-site audit activities S S S Conducting Opening meeting; Roles & Responsibilities of guide and observers; Collecting & verifying information; S Generate audit findings; S S Preparing audit conclusion; Conducting Exit meeting.

Step 5 : Preparing, approving and distributing the audit report S S Preparing the audit report; Approving and distributing the audit report.

Step 6 : Completing the audit S S Retaining documents; Finalizing the audit.
Step 7 : Conducting audit follow up S After completion of an audit, follow up actions must be taken to verify all corrective actions that have been taken.

26 APR 18 Document Owner: MSRM CHP 10 - 3 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 2.3.2 Step 1 ­ Initiating the audit i) Audit Request The audit request should be forwarded to the auditee informing them of the proposed dates of the safety audits.
This should be sent via e­mail by MSRM at least one week before the proposed on­site entry meeting.

ii) Appointing of a Lead Auditor MSRM is responsible for appointing a lead auditor if more than one auditor is required to carry out the audits.

The lead auditor should have passed any accredited lead auditor course and should have thorough knowledge of the areas to be audited.

The audit team leader is responsible for the overall conduct of the audit.
The tasks to be undertaken by each audit team member shall be assigned by the audit team leader.

These tasks may include reviewing documentation, conducting interviews with staff of the unit or section being audited, observing operations and writing material for the audit report.

The audit team leader must be an effective communicator and must be able to earn the trust of the section being audited.

iii) Defining Objectives, test steps, criteria, scope and duration of the audits.
An audit shall be based on documented objectives, test steps, scope and criteria.

The audit objectives, scope and criteria should be defined by the lead auditor in consultation with MSRM and the audit team members.

iv) Objectives The audit objectives shall define what needs to be accomplished during audit and to what extent the audit criteria are to be met.

v) Test Steps The audit test steps set out ways in which the objectives can be tested using the criteria as a determining parameter.
A particular objective can have several test steps.

CHP 10 - 4 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 vi) Criteria The audit criteria set the bench mark to which an operation shallbe performed.

This shallbe made in reference to the ICAO Annexes or Documents, CAAF Standard Documents, Company Policies, Procedures, law/regulations, management system requirements or contractual requirements.
vii) Scope The audit scope describes the extent and boundaries of the audit such as physical locations or sites, organizational units, activities and processes to be audited.

viii)Duration of the audits The duration of the audits should be determined by the team leader in consultation with MSRM.

The determination of the audit duration shall take into account the scope and the activities to be undertaken on site with minimal costs.
ix) Establish the audit team Safety audits may be undertaken by a single individual or a team, depending on the scale of the audit.

Depending on the scope of the audit and the availability of resources, experienced and trained individuals may perform safety audits or they may assist external auditors.
The staff selected to conduct an audit should have practical experience in disciplines relevant to the area to be audited, a good knowledge of the relevant regulatory requirements and the organization’s SMS, and should be trained in auditing procedures and techniques.

An audit team comprises of an audit team leader and one or more auditors.

The tasks to be undertaken by the individual team members shall be assigned by the team leader.
2.3.3 Step 2 ­ Conducting Document Review Before the on­site audit activities the auditee’s documentation should be reviewed to determine the conformity/compliance of the system as documented with audit criteria.
26 APR 18 Document Owner: MSRM CHP 10 - 5 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 During documentation review the auditor shall carryout the following: S S compile list of questionnaires that are relevant objectives; to the audit compile data (maintenance records etc.)

to see trend.

Upon conclusion of the document review, the lead auditor should inform the auditee of any additional information required for detailed evaluation during the on­site audit.
2.3.4 Step 3: Preparing for the On­site audit activities i) Preparing the audit plan The lead auditor shall prepare an audit plan to provide necessary information to the audit team and the auditee.
The audit plan shall include: S S S S S S The audit objectives; The audit criteria and any reference manual; The scope, including the functional units and processes to be audited; The dates and places where the on­site audit activities are to be conducted; The expected time and duration for on­site audit activities, including meeting with the auditee’s management and audit team meetings; The audit report expected date of issue and distribution.

The plan should be reviewed and acceptable by the auditee.
Any objections by the auditee should be resolved with the lead auditor before continuing with the audit.

This can be addressed during the opening meeting.

CHP 10 - 6 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 In addition the SMS audit plan should cover: S S S the sampling of completed and/or existing safety risk assessments; Currency of safety performance indicators and their target/alert settings; Certificate’s SMS interface with Contractors.
ii) Assign work to the audit team The lead auditor in consultation with the audit team, shall assign to each team members responsibility for auditing specific area of the audit scope; Such assignments should take into account the need for auditor independence, competence and effective use of resources as well as different roles and responsibilities of auditors; The audit team members should review the relevant information related to their audit assignments and prepare work documents necessary for those assignments.
iii) Preparing work documents Work documents shall be prepared and used by the audit team for the purpose of reference and recording the proceedings of the audit and can include: S S S Checklists and audit sampling plan; Forms for recording information, such as support evidence , audit findings and records of meetings; Interview question sheets.

The preparing of these work documents is to ensure that all required audit information are properly recorded and documented.
26 APR 18 Document Owner: MSRM CHP 10 - 7 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 2.3.5 Step 4: Conducting On­site audit activities The objective of the on­site audit is to confirm the information gathered during the documentation review by performing interviewing of selected staff and carrying out on­site observation; i) Conducting the Opening/Entry Meeting At the start of the on­site audit, the lead auditor shall conduct an opening meeting.
The purpose of this meeting is to ensure that all participants are advised of the purpose and scope of the audit, and to confirm that arrangements have been made for the audit activities to proceed smoothly.

All attendees shall sign the opening meeting attendance register.

The lead auditor should address all Checklists.

items in the Opening Meeting The on­site audit plan should also be discussed and agreed upon during this meeting.

Refer to APPENDIX A on the required format.


2.3.6 Roles and responsibilities of guides and observers Guides and observers can accompany the audit team but are not a part of the audit.
They should not influence or interfere with the conduct of the audit; Where guides are assigned, they should assist the audit team and act on the request of the lead auditor; Their duties can include: S S S Establishing contacts and timing for interviews; Arranging visits to specific parts of the organizations site; Ensuring that rules concerning site safety and security procedures are known and respected by the audit team members.
CHP 10 - 8 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 ii) Collecting & verifying information Information relevant to the audit objectives, scope and criteria that are related to the functions, activities and processes shall be collected by appropriate sampling during the audit and verified.
Only information that is verifiable shall be used as audit evidence; The techniques for gathering the information on which the audit team’s assessment will be made include: S S Review of documentation and records; Interviews with all level of staff; and S Workplace observations by the audit team.

iii) Interviews with all level of staff The persons to be interviewed should be drawn from a range of management, supervisory and operational positions.
The purpose of audit interviews is to elicit information, not to enter into discussions.

It also gives the staff involved, an opportunity to explain the system and work practices.

iv) Workplace observation by the audit team The purpose of conducting workplace observation is to confirm the information gathered during the interview and review of documentation.
A review of all audit observations shall be carried out during the on­site audit An assessment should be made by the auditor with respect to all items noted as nonconformities/non­compliance, deficiencies or safety shortcomings.

It should be borne in mind that the audit should not focus only on negative findings.

The audit should also highlight good practice within the area being audited.
v) Generate Audit Findings Audit evidence shall be evaluated against the audit criteria to generate the audit findings.

Audit findings can indicate either non­compliance, compliance, non­conformance , conformance or safety concern with the audit criteria.
26 APR 18 Document Owner: MSRM CHP 10 - 9 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 All audit findings shall be reviewed with the appropriate auditee representatives to obtain acknowledgement that the audit evidence is accurate and reports are understood.

Every attempt should be made by the lead auditor to resolve any divergence of opinion concerning the audit evidence and/or findings.

All findings shall be recorded in the “Audit Finding Report Form” (refer to APPENDIX B) .
vi) Preparing audit conclusion The audit team should confer before the exit meeting to: S S S S Review the audit findings and any other appropriate information collected during the audit against the audit objectives; Agree on the audit conclusions taking into account any uncertainty during the audit; Rating of audit findings; Prepare recommendations.
vii) Rating of audit findings Based on the evidence provided to the auditors, each audit findings/ the following: Non­compliance, criterion shall be rated as one of Compliance, Non­conformance, Conformance, or Safety Concern; The audit conclusion should be determined through the processes below: Source of Information e.g.

Station Log Book Collecting by appropriate sampling e.g.

From 1st Jan 06 - 31st Dec 07 Verifying e.g.


Confirm whether all monthly maintenance records are carried out on the above period.

CHP 10 - 10 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 Audit Evidence e.g.

Only 25% of the monthly maintenances are carried out as recorded.

Evaluate against audit criteria e.g.

The Maintenance Manual stated that monthly maintenance should be carried out before the end of the month.

Audit Findings e.g.
Audit Findings e.g.

Monthly maintenances are not carried out on a monthly basis as stipulated in the SOP.
Reviewing Involves discussion of all audit findings with appropriate auditee to obtain acknowledgement that the audit evidence is accurate and that the non­compliance/non­conformance are understood Audit Conclusion viii)Conduct Exit Meeting The purpose of the Exit Meeting is for the audit team to present the audit findings to the auditee and to agree on the findings raised, proposed corrective actions and the time to close off the finding.
All audit finding reports should be presented to the auditee during this meeting.

During this meeting, the parties will also discuss corrective/preventive actions required for individual audit findings.

If necessary, the lead auditor should advise the auditee of situations encountered during the audit that may decrease the reliance that can be placed on the audit conclusion.
26 APR 18 Document Owner: MSRM CHP 10 - 11 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 The meeting should be formal with records of attendance to be kept.

The meeting shall be chaired by the lead auditor and be held with the auditee’s management and those responsible for the functions audited.

Any diverging opinions relative to audit findings and /or conclusions between the audit team and the auditee should be discussed and if possible resolved.
If not resolved, both opinions should be recorded.

2.3.7 Step 5 : Preparing, approving and distributing the audit report i) Preparing the audit report The lead auditor shall be responsible for the preparation and contents of the audit report.

The audit report shall provide a complete, accurate, concise and clear record of the audit.
ii) Approving and distributing the audit report The lead auditor shall present the audit report (preferably within 7 working days after the Exit Meeting) to MSRM for approval prior to its distribution.

The audit report should be issued within the agreed time period specified in the audit plan.

The audit report should be dated and be distributed to the Accountable Manager/AE and the recipients designated by the audit client.
Only the Accountable Manager/AE may require a hard copy of the audit report while the rest of the designated recipients can be supplied with a soft copy.

2.3.8 Step 6 : Completing the audit i) Retaining documents All documents pertaining to the audit shall be retained and properly stored in a file.
CHP 10 - 12 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 Unless required by law, the audit team should not disclosed the contents of documents, any other information obtained during the audit, or the audit report, to any other party without the explicit approval of the auditee.

In case where the discloser of the contents of an audit document is required by law, the auditee should be informed as soon as possible.
ii) Finalizing the audit The audit is completed when all activities in the audit plan have been finalized and the approved audit report has been distributed.

2.3.9 Step 7 : Conducting the audit follow­up Audit follow­up involves the management of change.

Upon receipt of the final audit report, the auditee management shall ensure that progress is made to close the findings raised.

The primary purpose of an audit follow­up is to verify the effective implementation of the agreed corrective action plan.
Follow­up is required to ensure that any action taken pursuant to the audit does not in any way degrade safety.

Any known Hazards/threats from relevant industry reports (e.g.

ICAO, CAAF or airlines, etc) should be examined during the audit follow­up or inspection.

The audit follow­up should be carried out at an agreed time with the auditee (most preferably 4 months after the exit meeting) during the exit meeting.
Failure by the auditor to follow up on lapses in implementing necessary (and agreed) safety actions may compromise the validity of the entire safety audit process.

Where a follow­up visit has been made, a further report of this visit should be prepared.

This report should clearly indicate the current status of If any non­compliance, deficiency or safety shortcoming remains unresolved, the audit team leader should highlight this in the follow­up report.

the agreed corrective actions.


the implementation of 26 APR 18 Document Owner: MSRM CHP 10 - 13 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 3 INCIDENTS AND ACCIDENTS INVESTIGATION 3.1 General 3.1.1 The Ministry of Transport & Civil Aviation has the sole responsibility for the investigation of aircraft accidents in the Republic of Fiji.

3.1.2 incidents.
3.1.2 incidents.

CAAF shall be responsible for the investigation of aircraft 3.1.3 The relevant process owner within AFL shall also be responsible for the investigation of their operational processes which may had contributed to an aircraft incident or accident.
3.1.4 The relevant Manager shall determine the next course of action as far as the seriousness and safety of the situation including relieving of the personnel involved in the accident/incident as required; 3.1.5 When an accident or an incident (occurrence or defect which affects, or has the potential to affect air safety) occurs, the reporting process as detailed in section 7.2 of this manual shall be activated; 3.1.6 In addition to the MOR or Incident reported, the personnel involved shall prepare a detailed explanation of the sequence of events leading up to the incident/ accident before the end of his/her shift.
A copy of this report shall be submitted to his/her Manager.

3.2 Purpose of Investigation 3.2.1 The purpose of the incident investigation is to: S S Determine the facts of an occurrence; and To identify the factors underlying the occurrence.

3.2.2 Most importantly to identify the “root cause” and provide recommendations on what should be done to either prevent or reduce the probability of a recurrence.
CHP 10 - 14 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 3.3 Investigation Process As required, responsible manager shall ensure that all 3.3.1 incidents related to their processes which affect flight safety are investigated.
Relevant Certificates shall develop their investigation procedures specific to the type of incident related to their processes and shall encompass the following as a minimum: S As soon as an incident occurs the personnel supervisor who is first aware of the situation shall relevant manager immediately; involved or the inform the S Manager or designate shall immediately notify CAAF of the incident via phone in case it is a critical safety issue.

In such case, MSRM shall also be informed.


Else the report shall be made within 96 hours from the time it happened; S S S S S S S S Line managers shall facilitate or lead the investigation should the incident be related to their process; Investigation to begin immediately but not more than 2 hours from the time of the incident for vehicle related incidents or accidents on airside.
For other units, investigation shall convene immediately once the appointed investigation officer is available; Personnel team; involved should be excluded from the investigation Investigation report should cover what, when, how, why it happened and also provide recommendations to ensure that the same incident is not repeated; Provide a prescriptive event flow of what happened leading up to the incident/accident (if possible); Ensure that the investigation team is competent to conduct the required investigation; Initial report to be submitted within two working day; Final investigation report to be distributed within 10 working days from the date of incident.
26 APR 18 Document Owner: MSRM CHP 10 - 15 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 The final 3.3.2 investigation report shall be signed by the investigation team and approved by the Process Owner prior to it being distributed to the Accountable Manager, affected operational managers, MSRM and the relevant certificate’s SAG committee members.

Release of report to any external parties can be accommodated with prior approval of the Accountable Manager.
3.3.3 The copy of the final investigation report shall be maintained in the SRM archives for 7 years from the date the report was issued as final before it is destroyed.

3.3.4 available to present the final report to the relevant SAG committee.
the safety investigation team should be Upon request, 3.3.5 Safety Investigation report should include the following: S S S S S S S S S S Cover page; Executive summary of findings & recommendation; Location, Date & Time of Event; Investigation scope &objective; Investigation Team’s Roles & Responsibilities; Incident/accident synopsis; Event Flow leading up to the incident/accident; List of System/Processes deficiencies; Recommendations and Conclusion; Appendices (if applicable): i) Tape transcript (ATM incidents/accidents); ii) Statements by personnel involved, etc.
3.3.6 receiving any accident report for insurance purposes.

MSRM shall also advice the Senior Financial Officer upon CHP 10 - 16 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 3.4 Corrective Actions 3.4.1 closure of the corrective action items.

MSRM shall be responsible for tracking to ensure the timely 3.4.2 committee during their monthly meeting.
Corrective actions identified shall be monitored by the SAG 3.4.3 Hazards or threats uncovered during the incident/accident investigation processes shall be captured and monitored until closure in our Online Safety Portal.

3.5 Actions Against Safety Violation 3.5.1 The flowchart below should be used as guidance to determining whether the actions of the officer(s) involved in the incident were deliberate or unintentional.
The flowchart also dictates the appropriate penalties to be accorded in the event of a deliberate act.

3.5.2 The final decision in terms of penalties to be incurred should be made in consultation with the Accountable Executive/Manager and Manager Human Resources.
26 APR 18 Document Owner: MSRM CHP 10 - 17 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CHP 10 - 18 Document Owner: MSRM 26 APR 18 L F A 2 9 3 8 1 R P A 6 2 : - 0 1 P H C M R S M : : : r e n w O t n e m u c o D 0 2 - 0 1 P H C AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 APPENDIX A: ON SITE AUDIT PLAN On-Site Audit Plan Date: …………………..
Location: ………………………….

Audit No.

: ………… Entry/Opening Meeting: Date: Time: ……..

Location: ……… Exit/Closing Meeting: Date: …………….

Time: ………….

Location: ………… Audit Objective: E.g.

To determine whether: ·The departments’ structure is supporting the current operations & support of Nausori Tower.

·Personnel are competently trained & licensed to perform their allocated tasks.

·Processes & Procedures are in compliance with ICAO SARPS and National Rules and Regulations and staff are aware of these.
·Equipment & Facilities are adequate to support the departments’ operations.

Audit Criteria: E.g.

Fiji MATS, Nadi Local Unit Orders, Nadi ATSI’s, Fiji AIP, SD­ATS, SD­PEL 26 APR 18 Document Owner: MSRM APPEN - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Day 1 Day 2 Day 3 AFL 392 Day 4 PM AM PM AM PM AM PM Auditors [List auditor’s name] AM Opening of Meeting S S AM : 9am – 1pm PM : 2pm – 5pm * Note: The table above may change according to the activities to be undertaken.
APPEN - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 APPENDIX B; AUDIT FINDING REPORT FORM AUDIT FINDING REPORT FORM □ Non­Compliance □Non­conformance □ Compliance □Conformance [System Name] AUDIT ­ [Location] □Safety Concerns Audit Name: Auditor: SAudit Objective STest Step SSource Data Finding SCondition (What is in place?)

SCriteria (What should be?)

SEffect (So what?

/consequences/result) SCause (Why the condition exists?

/source?)
/source?)

Recommendation (How to make it better?)

[Department Manager]: Agree/Disagree: (If not, why?
): Action Plan: Target Dates: Responsible Officer: Rev 2.0 Issue Date: 9th Dec 2016 Form No: AFL393­08 26 APR 18 Document Owner: MSRM APPEN - 3 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK APPEN - 4 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 DOCUMENTATION AND SAFETY DATA MANAGEMENT 26 APR 18 Document Owner: MSRM COVER - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK COVER - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 CHAPTER 11 - CONTENTS DOCUMENTATION AND SAFETY DATA MANAGEMENT CHP 11-1 CHP 11­1 .
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CHP 11­1 .

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CHP 11­2 .

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General Procedures Safety Data Collection 1.1 1.2 1.3 SAFETY PERFORMANCE MONITORING General Safety Target Levels Safety Alert Levels Corrective Action for Alerts Safety Performance Indicator Monitoring .

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CHP 11-4 CHP 11­4 CHP 11­5 CHP 11­6 CHP 11­7 CHP 11­7 2.1 2.2 2.3 2.4 2.5 1 2 26 APR 18 Document Owner: MSRM CONTENT- 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CONTENT- 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1 DOCUMENTATION AND SAFETY DATA MANAGEMENT 1.1 General 1.1.1 The company follows quality principles in applying a systematic approach to safety management and continual improvement practices to the overall safety objectives.
1.1.2 the control of the SMS manual.

The Manager Safety & Risk Management is responsible for 1.1.3 The Controller – AIS is responsible to ensure that any changes to the SMS manual are promulgated to all Holders of the manual in a timely manner.
1.2 Procedures 1.2.1 certificate are as follows: The procedures for the safe operation of the relevant S S S S S S Aerodrome ­ relevant Aerodrome Manual, Airside Operations Manual (Nadi & Nausori only), Department’s Operations Manual Airport Emergency Plan (AEP), and Corporate Wild life management manual; Air Traffic Management –Exposition Manual, Fiji Manual for Air Traffic Services (FMATS), Local Unit Order (LUO), Air Traffic Services Instruction(ATSI), Aeronautical Information Publication (AIP)and Aeronautical Information Circular (AIC); Approved Maintenance Organization ­ Exposition Manual, Safety & Quality Manual, Operation Manual & Maintenance manual; AIS – Exposition & AIS Manual; Aviation Academy –Exposition Manual, ATS Training Manual, Aviation Academy Quality Manual; Search and Rescue – Exposition Manual and Search &Rescue (SAR) Manual.
26 APR 18 Document Owner: MSRM CHP 11 - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 1.2.2 be applicable: In regards to any emergency, the following documents shall a) Airport Emergency Plan for all our aerodromes.

The Airport Emergency Plan is published for each airport and provides the procedure that the organisation will activate in cases of any aircraft emergency (incl.
incident and accidents), Bomb Threat, Natural Disaster, Dangerous Goods, etc at our aerodromes; b) Tower Contingency Plan for Nadi & Nausori airport and the Nadi FIR Contingency Plan – These Contingency Plans shall be activated as and when a contingency arises due to partial or total disruption of Air Traffic Services.
The Contingency Plans aim at advance preparedness and instantaneous response to a contingency arising due to disruption of Air Traffic Services with an objective of providing safe and orderly passage to the air traffic operating within the Nadi Control Area, Nausori Control Zone and Nadi FIR; c) ATM Emergency Response Procedures – provides guidance to ATM staff in the execution of their responsibilities whenever abnormal situations are being simulated as per the requirements of the respective Local Unit Orders and the Standards Document – Air Traffic Service Provider.
The control and management of the above documents is dictated by the Documentation Management Manual, Doc 301.

1.3 Safety Data Collection 1.3.1 The purpose of collecting safety data on our business activities is to identify trends and areas requiring safety action.

This data will be used to identify areas that are in need of attention.
1.3.2 Data collections are to be conducted on the following Safety Focus Areas based on the required frequency of data collection stated below: CHP 11 - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1.

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Safety Focus Area Wildlife Management Runway Incursion Frequency Collection& Monitoring of Data Monthly Monthly Foreign Object Damage to aircraft Months.
Aerodrome Electrical Facilities Monthly Navigational Traffic Aids, Management Systems and Airport Systems & Services Air Aerodrome Field/RWY, Telecom incl.

& airport Electrical Fighting Fire Mechanical Equipment Maintenance system, and Monthly Monthly Rescue Fire Service Monthly Aerodrome surfaces Every 2 years.

Non­Compliance Operational Hazards ATM Incidents Human Fatigue Every month.

Every month.

Weekly 6 monthly.


1.3.3 The above safety data shall be collected by the relevant process owner and sent to MSRM on the first week of the next immediate month once it is due (based on the above frequency of data collection).

The relevant QASO both at ATM and ANES is required to 1.3.4 cross check their Safety Data records with the SRM database on a monthly basis preferably before their monthly SAG meeting on current report status.
26 APR 18 Document Owner: MSRM CHP 11 - 3 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 All Safety related Data including hazard reports, risk 1.3.5 reports, safety committee meeting minutes, safety assessment performance indicator charts, SMS audit reports and SMS training records shall be maintained in the SRM archives for 7 years from the date the report was made before it is destroyed.
The method of storage includes both electronic and printed copy; 1.3.6 For analysis purposes, these data shall be maintained by the Safety Data Coordinator (SDC) and analysed further to identify trend and other important information that would enhance our effort to make our current control effective.

Preferably, these needs to be maintained using a database.

Ensure the protection and back-up of data.


2 SAFETY PERFORMANCE MONITORING 2.1 General 2.1.1 Safety performance monitoring plays a crucial role in: S S S Providing the necessary feedback on the health of our Safety Management System; Assist the organization to proactively respond to any irrational safety performance; and Enable the organization to set realistic future performance targets and direction.
2.1.2 defined in order to carry out monitoring as required under the ICAO Safety Manual, Doc 9859: For each of the Focus Areas, the following are required to be the necessary safety performance S S Safety Target Levels; and Safety Alert Levels (applicable for event based Focus Areas only).

2.1.3 To successfully set a realistic Safety Target Level/ Alert level that is commensurate to the organization, historical safety data is required.
CHP 11 - 4 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 2.2 Safety Target levels 2.2.1 be achieved during a monitoring period; The Safety Target Levels define the desired specific goals to 2.2.2 As a start, the STL stated by the regulator can be used as an initial method of monitoring however each certificate shall facilitate improvements based on previous year’s performance; 2.2.3 The target levels setting are planned improvements and should be based on previous monitoring period e.g.
the target incident rate for the new (current year) monitoring period’s average rate to be, say 5% lower (better) than the preceding period’s average value; 2.2.4 Safety Target Levels are to be reviewed annually, preferably during the month of January.

This allows those responsible for data­collection to analyse the dataset for a period of one year and set a realistic target level for the new monitoring year.
SRM is available to assist the relevant certificate in this regard; the SRM unit At the end of each monitoring period stated in para 1.3.2 for 2.2.5 each Focus Area, in consultation with the relevant certificates is required to determine whether the defined target level has been achieved or not.
If the current average rate is at least equals the target set or lower if its event based or higher if its activities based, then the set target improvement is deemed to have been achieved; For every Safety Performance that did not achieve its defined 2.2.6 target level, an assessment is required to be conducted by the SRM team in consultation with the process owner in order to determine the areas of deficiency.
Findings are required to be discussed with the process owner for appropriate remedial action and tabled in the relevant SAG committee meeting for monitoring purposes.

26 APR 18 Document Owner: MSRM CHP 11 - 5 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 2.3 Safety Alert Levels 2.3.1 The Safety Alert Level is meant to capture any erroneous safety performance in our system.
This shall apply to incident or accident event only as a way to actively monitor and implement timely actions that would improve any erroneous safety performance.
With the employment of standard deviation (SD) in three 2.3.2 levels, “alerter” providing feedback on any continuous/major deviation from our defined safety performance targets; these act as The alert level for a new monitoring period (current year) 2.3.3 should be based on the preceding period’s performance (preceding year), namely its data points average and standard deviation.

The three alert lines are to be calculated as: S S S Average + 1 SD; Average + 2 SD; and Average + 3 SD.
2.3.4 For the purpose of calculating the Standard Deviation (SD), this can be easily done using the MS Excel Spread­sheets preset formula; An alert (abnormal/unacceptable trend) is activated if any of 2.3.5 the conditions below are met for the current monitoring period (current year): S S S any single point is above the 3 SD line; 2 consecutive points are above the 2 SD line; 3 consecutive points are above the 1 SD line.
CHP 11 - 6 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 2.4 Corrective Action for Alerts 2.4.1 When an alert is triggered (potential high risk or out­of­control situation), appropriate corrective or follow­up action has to be conducted by the SRM team in consultation with the process owner; The corrective or follow­up action is to determine the source 2.4.2 and root cause of the abnormal incident rate and any necessary action to address the unacceptable trend.
This require a safety review of all processes/activities related to the safety outcomes; 2.4.3 Findings are required to be communicated immediately to the process owner for corrective action and tabled in the relevant SAG committee in their next immediate meeting for necessary monitoring.
2.5 Safety Performance Indicator Monitoring Depending on the frequency of data collection for each 2.5.1 Safety Focus Area, actual performance are required to be plot against the relevant Safety Target Level and the three alert levels preferably using Line graph to give an indication on our performance against the STL.

Refer to Graph below for detail.


2.5.2 In reference to Graph below, the Jan, March and April performance actually went above the STL, however these were not of immediate concern as it did not satisfy the alert conditions.

However, between Sep – Nov it actually triggered an alert as 3 consecutive points were above the 1 SD line.

This would necessitate a safety assessment to determine any loop holes in our defenses.
26 APR 18 Document Owner: MSRM CHP 11 - 7 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CHP 11 - 8 Document Owner: MSRM 26 APR 18 L F A 2 9 3 8 1 R P A 6 2 : - 1 1 P H C M R S M : : : r e n w O t n e m u c o D 0 1 - 1 1 P H C AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 SAFETY PROMOTION AND CHANGE MANAGEMENT 26 APR 18 Document Owner: MSRM COVER - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK COVER - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 CHAPTER 12 - CONTENTS 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 SAFETY PROMOTION General Safety Culture Change Management Safety Case Process Formation Of An Assessment Team Conducting of the Safety Assessment Issuing Of The Draft Safety Case Report Final Report Sign­Off And Distribution .
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AFL 392 CHP 12-1 CHP 12­1 CHP 12­1 CHP 12­2 CHP 12­3 CHP 12­5 CHP 12­5 CHP 12­7 CHP 12­8 APPENDIX A .

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APPEN -1 26 APR 18 Document Owner: MSRM CONTENT- 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CONTENT- 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1 SAFETY PROMOTION 1.1 General 1.1.1 Safety Promotion is necessary to ensure that the entire organization fully understands and trusts the SMS policies, procedures, and structure.
This pillar is achieved by establishing a culture of safety, training employees in safety principles, and allowing open communication of safety issues.
1.1.2 safety culture in their respective areas through the following: Senior managements are expected to promote a positive S S S S S S All personnel are trained for their safety responsibilities; Safety is a shared responsibility; Safety­related information is disseminated to all affected personnel; Potential system failures and hazards lead to prompt managerial inquiries and any necessary reforms taken; a formal programme is in place to regularly assess safety performance; and new ideas related to safety are welcomed.
1.2 Safety Culture 1.2.1 The main goal of safety promotion is to create a “safety culture” that allows the SMS to succeed.

Having a safety culture means that all employees are responsible for safety.

Such a culture is led by top management example, especially in the manner with which they deal with day­to­day activities.
1.2.2 Employees must fully trust that they will have management for decisions made in the interest of safety, while also support recognizing that intentional breaches of safety will not be tolerated.

The result is a non­punitive environment that encourages the identification, reporting, and correction of safety issues.

26 APR 18 Document Owner: MSRM CHP 12 - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 1.2.3 attitudes and the style of the organization.
Safety culture relates to such intangibles as personal 1.2.4 To ensure that we keep track of our safety culture performance, safety survey will be conducted by MSRM at least once a year in all certificate areas.

The survey results are required to be used for decision 1.2.5 making in not only identifying our areas of focus but also enable us to gauge the effectiveness of our safety initiatives compared to previous years.

1.2.6 expected to be distributed across the organization.
The annual outcome analysis and recommendation is 1.3 Change Management As part of the SMS safety assurance activities, any changes 1.3.1 that can/may affect the safety performance of an operational unit need to undertake a risk assessment evaluation case (safety assessment) of the intended changes.

The exercise should be carried out with a close consultation of the staff involved.
1.3.2 For instance, major changes involving operating procedures, equipment acquisition or configuration, organizational working relationships, etc.

are planned, a safety assessment is warranted.

Annex 11 — Air Traffic Services requires that any significant safety­related change to the ATC system shall be implemented only after a safety assessment has demonstrated that an acceptable level of safety will be maintained.
Similar 1.3.3 requirements in respect of any change in an aerodrome operating environment exist in Annex 14 — Aerodromes, Volume I — Aerodrome Design and Operations, and in the guidance material provided in the Manual on Certification of Aerodromes (Doc 9774).

The scope of a safety assessment must be wide enough to cover all aspects of the system that may be affected by the change, either directly or indirectly, and should include human, equipment and procedural elements.
1.3.4 Relevant Line Managers shall advise MSRM on any planned changes immediately after acquiring the required approval either from the Accountable Executive/Manager or the Board.

CHP 12 - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1.4 Safety Case Process 1.4.1 Safety case studies are a process conducted prior to the introduction of a new equipment or procedure to identify any hazard(s) and their associated risk level.
It will also generate recommended corrective actions to eliminate or reduce the risk level and determines whether the proposed change is safe for adoption.

1.4.2 to the A Safety Case shall be undertaken prior implementation of any change that has the potential to affect flight safety.
Safety case shall be conducted when any or all of the following conditions exists: S S S Changes in facilities or equipment that is used by aircraft; Changes in operations and processes that affects flight safety; and Changes in regulation or requirements (internal or external) that affects the effectiveness of our operation.
1.4.3 following areas: The safety case identifies, but is not limited to, the risk to the S S S S S Systems, including lapse in procedures and breach of regulations; Human, effect on staff numbers, ability to do one’s job, etc; Equipment – reliability, availability, integrity; Environment – appropriateness of the environment to the rest of the elements (human, equipment etc); and the Process or activities needed to bring the required changes into effect.

1.4.4 when dealing with any safety case.
Provided below is the required process to be undertaken 26 APR 18 Document Owner: MSRM CHP 12 - 3 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 Formation of an Assessment team Conducting of the Safety Assessment Issuing of the draft Safety Case Report Final Report Sign­off & Distribution Safety Case Flow Chart CHP 12 - 4 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1.5 Formation of An Assessment Team 1.5.1 Once the proposed change scope and the work plan has been finalized, the project manager in charge should formally request MSRM of the need to conduct a safety case.
The MSRM in consultation with the Process Owner will then 1.5.2 be required to form a team ( headed by the Process Owner or designate) that consist of relevant representatives from other operational units; 1.5.3 of the Safety Case team.

MSRM shall ensure that all required representatives are part 1.6 Conducting of the Safety Assessment.

1.6.1 As a start, the team shall define the following: S S S S Project Context/System Description; Project Objective; Roles & Responsibilities; and Project Environment.
1.6.2 The Safety assessment should focus on identifying potential risks that could arise from the required change in view of the project context, objective, responsibilities and environment in the above.
1.6.3 The safety assessment should take into account the need to eliminate or modify safety risk controls that are no longer needed due to changes in the operational environment; 1.6.4 process below: The safety assessment shall be carried out in line with the 26 APR 18 Document Owner: MSRM CHP 12 - 5 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 Safety Case Process CHP 12 - 6 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1.6.5 Treatment Plan form (Refer to APPENDIX A).
The assessment outcome should be recorded using the Risk 1.6.6 complete.

The Safety Assessment should take at most one week to 1.7 Issuing of the Draft Safety Case Report 1.7.1 The draft Safety Case report should be circulated within one week after the completion of the safety assessment.
The draft should be distributed to the certificate’s Accountable Manager, affected operational managers, MSRM and the certificate’s SAG committee members; 1.7.2 following: As a minimum, the Safety Case report should include the S S S S S S S Cover Page; Executive Summary; Project Context/System Description; Project Objective; Roles & Responsibilities; Project Environment; Summary of Hazard; S Mitigation Plan; S S Conclusion; Attachment (include RM Matrix).
1.7.3 present the draft report to the relevant SAG committee.

If required, the safety case team should be available to 26 APR 18 Document Owner: MSRM CHP 12 - 7 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 1.8 Final Report Sign-off& Distribution 1.8.1 After acceptance of the draft report by the Accountable Manager, the team shall prepare the production and distribution of the final report.
1.8.2 of the following personnel: The final report cover page is required to have the signatory S S Process Owner ; Accountable Manager; and S Manager Safety & Risk Management.

1.8.3 Once the report is signed, MSRM is required to maintain the original copy of the report while all the others (AE, Project Manager and the Regulator) shall be issued with a controlled copy.
Upon request, affected stakeholders (such as the airlines, tenants etc) should be given a copy; 1.8.4 The Process Owner shall ensure that the corrective actions highlighted in the Safety Case are implemented within the agreed target date.

This may require a review of the project “Method of Work Plan” to ensure that all safety issues are appropriately addressed.

1.8.5 signed.
1.8.5 signed.

The final report shall be distributed immediately once it is 1.8.6 The effectiveness of the corrective, preventive and recovery measures that have been developed shall be evaluated by the Management Safety Committee and the Safety Action Group (refer chapter 6 para 1.3 and 1.4).

This evaluation ensures that a process is in place for the periodic review of the completed safety assessments and documenting their outcomes.
CHP 12 - 8 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 APPENDIX A: RISK TREATMENT PLAN Risk Treatment Plan Hazard Description: Date Raised Risk ID Risk Context(Effect/How it can happen?)
Initial Rating Risk Risk Consequence:Risk Likelihood: Risk Level: Recommended Actions: Target Date RESIDUAL RISK AND TREATMENT Risk Likelihood: Risk Consequence: Residual Risk Rating: Residual Risk Status: RISK OWNER AND REVIEW DATE Risk Owner: Signatory : Comments: Risk Status: Date : Rev 3.0 Issue Date: 9th Dec 2016 Form No: AFL393­06 26 APR 18 Document Owner: MSRM APPEN - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK APPEN - 2 Document Owner: MSRM 5 JAN 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 EVALUATION OF SAFETY MANAGEMENT SYSTEM 26 APR 18 Document Owner: MSRM COVER - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK COVER - 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 CHAPTER 13 - CONTENTS 1 1.1 1.2 1.3 1.4 SAFETY MANAGEMENT SYSTEM General Areas Of Focus Communication And Consultation Corrective Actions Review .
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AFL 392 CHP 13-1 CHP 13­1 CHP 13­1 CHP 13­2 CHP 13­3 26 APR 18 Document Owner: MSRM CONTENT- 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 INTENTIONALLY BLANK CONTENT- 2 Document Owner: MSRM 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL Issue 5 Date of Issue: 26 APR 18 AFL 392 1 SAFETY MANAGEMENT SYSTEM 1.1 General 1.1.1 Evaluation is a set of techniques for checking for adequacy and effectiveness of our Safety Management System.
It helps us make decisions about safety controls in our organization.

The evaluation process should be carried out in line with the Amendment Process contained in the preliminary page of this document.

The evaluation is required to be carried out once a year.
1.2 Areas Of Focus The relevant certificates Accountable Executives together 1.2.1 with the Committee members are required to evaluate the following aspects of the company SMS on an annual basis and make proposal for amendments accordingly: If No, then state reason.

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12. recent Area of Focus Is there a clear safety policy?

Have we any included amendments to the SMS legislation?

Are we receiving the necessary support from Top Management?
Is the hazard reporting system effective?

Are we on track in terms of achieving our safety targets?

Are we recognizing its contribution towards enhancing safety?

Is there timely feedback provided at all levels?

Is refresher offered?

Is there an internal investigation and auditing system in place, and is it working?

Have we improved the organization’s safety culture based on our safety culture performance?

Is our safety performance measured on a timely basis?
Is all relevant data relate to our safety objectives readily available?

information or training 26 APR 18 Document Owner: MSRM CHP 13 - 1 Issue 5 Date of Issue: 26 APR 18 AIRPORTS FIJI LIMITED SMS MANUAL AFL 392 1.2.2 terms of process should address the overall effectiveness of management system within our company.

The criteria for evaluation should include the commitment in time and personnel (expertise).
The evaluation finance, the safety 1.3 Communication and Consultation 1.3.1 information relating to the company's Safety Management System.

The company uses the following media to communicate S S Safety Bulletin Boards; Safety Action Group Committee meetings; S Management Safety Committee; or S Company e­mail system.
1.4 Corrective Actions Review 1.4.1 In order to ensure that the safety program is effective, any action taken to correct a problem must be assessed to determine whether it is having the desired effect.

One cannot assume that it would be the only action needed and therefore conclude that the problem is solved; 1.4.2 make to the safety reporting system; Company personnel should see the results of any inputs they 1.4.3 The results of all safety audits, and all risk assessments shall be maintained on file.
These results, along with any actions taken to prevent recurrence of the risk, will provide feedback on the overall safety program.

These records may also help provide direction for correcting future problems, where actions which have been only partially effective or ineffective can be discarded and new directions tried, thus saving time and resources.

CHP 13 - 2 Document Owner: MSRM 26 APR 18 31 March 2020 Hon.
Alvick Maharaj The Chairperson Public Accounts Standing Committee Parliament of Fiji P O Box 2353 Government Buildings Suva Dear Hon.

Alvick Maharaj, RE: Response on issues – 2018 Audit Report of the Auditor General of the Republic of Fiji.

We acknowledge receipt of letter dated 20 March 2020 on the clarification of issues on 2018 Audit report for Copra Millers of Fiji Limited (CMFL).

Question 1 Has the Company documented Risk Management Framework in place?

If yes, please submit a copy to the Committee.


CMFL have received the final draft copy of Risk Management Policy and Risk Register from KPMG.

The Partner Mr. Anare Manulevu presented the Risk Management Policy and Risk Register to Board and Management on 13 March 2020.

We enclose the Risk Management Policy and Risk Register for CMFL.

Question 2 Why was the financial transactions of the two Mills not included in the financial statements?

What role does the Company play in managing the two Mills?
The financial transactions of CMFL and Bio Fuel Mills are kept separate.

With separate bank accounts and all records.

The Island Accounts shall be audited separately by Office of Auditor General.

CMFL has signed an agreement with Department of Energy to manage the idle Bio Fuel Mills on the island of Rabi, Lakeba, Cicia, Gau, Moala and Matuku.
CMFL has been provided an initial startup capital of $150,000 for Mill Repairs and buying of raw materials on the island and processing into Coconut Oil on the island.

To date, 4 Mills are fully operational – Rabi, Lakeba, Cicia and Gau.

Question 3 Why is the Company generating negative cash flows from operations?

What measures has the Company put in place to ensure positive cash flows are derived from operations.

What is the status of the cashflow now?


The Bank Overdraft is exceeded on numerous occasions due to delay in receiving the refunds for Producers and Millers from Copra Price Stabilization Fund – Ministry of Economy/Agriculture.

Around 3 to 4 months then we receive the reimbursement with our Daily operations continuing.

The Copra Price has been below the minimum support price of $1,000.
During these situations, CMFL pays farmers a minimum guaranteed price of $1,000/ton of Copra and claims the balance from Government.

The claim is processed in 3 to 4 months period which leads to Overdraft of $400,000 exceeding at times.

Measures: CMFL is selling its Coconut Oil every month for cash inflow.

We are stock piling the raw material for 3 weeks and processing in 4th week of month and selling Oil stock by first week of each month.
With the delay in refunds for Producers and Millers Share we are working with Bank of South Pacific to increase Overdraft from $400,000 to $600,000.

$200,000 as a standby only during need.

Cashflow Position Now: Bank Overdraft Position: 31 January 2020: NO Overdraft – Bank Balance Positive $51,522.
As at 31 March 2020 – Producers & Millers Share & Whole Coconut Subsidy receivable: Producers & Millers Share Whole Coconut Subsidy Dec $55,989.01 Jan $25,269.86 Feb $80,813.98 Mar $91,033.00 Total due $253,106.00 31,695 51,175 93,341 127,339 $303,550 Total receivable as at 31 March 2020 $556,656.

If this is received timely, there will be no cashflow issues.

Question 4 What is the current position of the Company’s current ratio?

What measures were put in place to improve the current ratio?
2019: Current Ratio: 1.47:1 Receivables as at 31 December 2019 Whole Coconut Subsidy & Replanting Producers & Millers share refund – CPSF Total Measures: $176,690 $381,101 $557,791 we are discussing with our Ministry of Agriculture and Ministry of Economy on timely refund of Producers and Millers share so it assist us in our cashflow.

CMFL is using its own funds to pay price up to support level $1,000 and when the claim comes after 3-4 months, this puts pressure on our cashflow.
Sustainable Development Goals (SDGS) The SDGS forms part of our Corporate Plan section 1.5.

(Annex 1) CMFL has also referred to National Development Plan and Ministry of Agricultures Plan during the preparation of Corporate Plan.

Please feel free to contact me if any further information is required.

Yours sincerely, John Deo General Manager cc.


Mr. Raj Sharma – The Board Chairman Part of CMFL Corporate Plan Section: 1.5 Sustainable Development Goals The Sustainable Development Goals, otherwise known as the 2030 Agenda, are a universal call to action to end poverty, protect the planet and ensure all people enjoy peace and prosperity.
The seventeen (17) goals of the SDGs build on the successes of the Millennium Development Goals (MDGs), while including new areas such as climate change, economic inequality, innovation, sustainable consumption, peace and justice, among other priorities.

The Goals interconnect and in order to leave no one behind, it is important that we achieve each Goal and target by 2030.

17 SDGs CMFL Contributes to SDG goal 1 and 13.


Income for our coconut farmers   Eliminating poverty  Food security  Farmer bundled insurance  Coconut planting as a resilient crop to Climate Change, coastal protection and strong wind barrier.
CMFL’s contribution towards eliminating poverty and Copra Millers Fiji Limited Enterprise Risk Management March 2020 Drivers of Strong Risk Management in the Current Environment Governance Strategy Performance  Heightened regulatory expectations and new regulations  Compliance with current regulations  Boards/Senior management requiring risk visibility  Risk accountability  Response to the changing external environment  Growth opportunities  Improved linkage to strategy  Better alignment to business  Competitive advantage  Leveraging resources  Reduction of costs   Greater transparency  Alignment through GRC tools and/or data Improved risk intelligence © 2017 KPMG, a Fiji partnership, is part of the KPMG International network.
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2 Document Classification: KPMG Confidential (ERM) Value of Enterprise Risk Management  Strategic Planning Risk / Reward Decision  Operational Risk / Reward Opportunity Evaluation  Capital Cost  Avoiding Losses  Financial Risk Management  Governance / Compliance Cost A measurable, positive contribution to the organization.

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KPMG International Cooperative ("KPMG International") is a Swiss entity.

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3 Document Classification: KPMG Confidential Source: KPMG, LLP: Placing a Value on ERM Overview of the program The opportunities...  Clear and robust framework to identify and manage risk consistently  Opportunity to sit back from day-to-day operations, pop the head up, and look at the business objectively through a different lens  Focus on optimising and capitalising on the opportunities arising from risk, whilst still minimising the downside of risk  Indication of how much of the risk is controllable by the business  Opportunity to reflect on whether optimal resource allocation, to focus on the areas of highest risk across the business, is being achieved  Framework that provides the business with better input into decision making…a start but often not perfect from day 1 © 2017 KPMG, a Fiji partnership, is part of the KPMG International network.
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4 Document Classification: KPMG Confidential Brief overview of key concepts: What Is Risk?
Risk is defined as: The threat that an event, action or inaction will adversely affect the organisation from successfully achieving its objectives Key issues Context is impact on achievement of strategic objectives Consider both: — Minimising downside (things that may constrain/impact) — Maximising upside (things we can do more effectively) © 2017 KPMG, a Fiji partnership, is part of the KPMG International network.

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5 Document Classification: KPMG Confidential Brief overview of key concepts: Gross And Net Risk Scenario 1 – Gross Risk Is the rating of a risk without having regard to mitigation strategies in place Scenario 2 – Net Risk Is the rating of a risk having regard to the mitigation strategies in place Allows us to understand the importance of each risk to the business Allows us to assess the effectiveness of controls and the capacity to control/ influence the risk That is… What are the important risks to manage well That is… How well are we managing risks and where can we improve © 2017 KPMG, a Fiji partnership, is part of the KPMG International network.
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6 Document Classification: KPMG Confidential Our approach © 2017 KPMG, a Fiji partnership, is part of the KPMG International network.

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7 Document Classification: KPMG Confidential Brief overview of key concepts: Measurement Methodology To determine the gross risk rating, each identified risk is measured in terms of Consequence and Likelihood Consequence A measure of the impact of the identified risk occurring Tiered rating scale: insignificant…minor…moderate …major…catastrophic Refer to Consequence table Likelihood A measure of the frequency of the risk occurring Tiered rating scale: Likelihood rating Scale Almost certain Likely Moderate Unlikely Rare Happens every year Once every 2-5 years Once every 5-10 years Once every 10 -20 years Once every 20 years © 2017 KPMG, a Fiji partnership, is part of the KPMG International network.
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8 Document Classification: KPMG Confidential Risk rating framework...

Consequence and Category Financial impact (Or change in revenue - excluding Govt.
Grant) Brand & Reputation Determination of Consequence Rating Insignificant (1) Minor (2) Moderate (3) Major (4) Catastrophic (5) < FJD 300k < 10% of net profit FJD300k - FJD600k 10 - 20% of net profit FJD600k - FJD900k 20 - 30% of net profit FJD900k - FJD $1.5m 20 - 50% of net profit >FJD 1.5m > 50% decline in revenue Limited public awareness.

Issue contained on an individual or local level.

Unlikely to lead to a stakeholder complaint.

Minor local media exposure.

Members disappointed.


Likely to lead to stakeholder complaint Stakeholders questions CMFL's values or ongoing commitment.

Likely to be referred to a politician, lobby group or state/national media Consistent and continued adverse criticisms by stakeholders (incl staff).

Likely to receive significant or extended negative media coverage by national media Serious public or media outcry with national coverage.
Governance (Legal & Compliance with Ports Act & SOE Act) Minor breach (i.e.

small fine).

No regulatory or legal consequence Warning issued by regulator.

Legal style letter received or sent.

Likely fine or prosecution.

Detailed legal advice required.

Inquest intobusiness.

Major fines and/or court case Loss of licence and directors/ senior management charged and/or convicted EHS - staff health No injuries and/or no first aid treatment (non- reportable).
Minor injuries or first aid treatment (reportable).

Medical treatment incl doctor or hospital visit required.

Extensive injuries resulting in incapacity for at least one week.

Business Interruption Business interruption for 1 hour to 1 day Business disruption for 1 to 2 consecutive days Business disruption for 3 to 5 consecutive days Business disruption for 6 to 10 consecutive days Death or severe incapacity.

No longer able to work.


Business disruption for more than 10 consecutive days - major loss of services, IT systems, power etc.

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KPMG International Cooperative ("KPMG International") is a Swiss entity.

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9 Document Classification: KPMG Confidential Brief overview of key concepts: Measurement Methodology The combination of the likelihood and consequence assessments for each risk produces the risk rating : Consequence Likelihood Insignificant Minor Moderate Major Catastrophic Almost certain High Likely Moderate Unlikely Rare Moderate Low Low Low High High Moderate Extreme Extreme Extreme High High Extreme Extreme Extreme Extreme Low Low Moderate Moderate High High Extreme High © 2017 KPMG, a Fiji partnership, is part of the KPMG International network.
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10 Document Classification: KPMG Confidential Brief overview of key concepts: Measurement Methodology To determine the net risk profile, the effectiveness of the control environment/mitigation strategies are assessed Satisfactory Controls are strong and operating properly, providing a reasonable level of assurance that objectives are being achieved.
Some weaknesses Some control weaknesses / inefficiencies have been identified.

Although these are not considered to present a serious risk exposure, improvements are required to provide a reasonable assurance that objectives will be achieved.

Weak Controls do not meet an acceptable standard, as many weaknesses/inefficiencies exist.

Controls do not provide reasonable assurance that objectives will be achieved.
External Factors are considered…controllability Controllable Partially controllable Not controllable Organisation has the capacity to significantly influence the risk rating.

Organisation has the some capacity to influence the risk rating.

Organisation has limited or no capacity to influence the risk rating.

Based on these factors the ratings are reassessed Likelihood may reduce or Consequence may reduce © 2017 KPMG, a Fiji partnership, is part of the KPMG International network.
KPMG International Cooperative ("KPMG International") is a Swiss entity.

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11 Document Classification: KPMG Confidential KPMG’s Strategic Risk Outputs • Risk Register Assessing risk before controls is critical.

Allows focus on those risks that matter the most © 2017 KPMG, a Fiji partnership, is part of the KPMG International network.

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12 Document Classification: KPMG Confidential KPMG’s Outputs – Detailed Risk Register A repository for risk information that: Is intuitive and easy to use • • Captures the improvements opportunities and Risk ref: Risk Title Risk category Cause Consequence Consequence Likelihood Gross risk External factors Controls Control Strength Control Controllability Consequence Likelihood Net risk progress against these • Promotes accountability • Comes with inbuilt ‘bells and whistles’ Failure to develop and implement a corrective and preventative maintenance program for all the ports infrastructure Governance - Ineffective asset management framework - Lack of a scheduled maintenance program/plan - Lack of long term infrastructure replacement plan - Increased maintenance costs - Safety risks for staff, customers and public entering wharf - Lack of budget allocation for maintenance Major Likely Extreme - External events (fire, natural catastrophe, etc) Weak Largely controllable Moderate Moderate High Inability to maximise commercial and productive activities on the Authority's land Commercial - No master plan for port commercial development - Lack of a long term strategic development plan - Lack of funding - Missed opportunities to maximise income - Potential loss of revenue - Staff morale Moderate Likely High Moderate Likely High Inability to attract, train and retain key personnel Human Resources - Poor recruitment practices - Lack of investment in staff (salary, other benefits, professional development, mentoring) - Lack of cross-skilling & back-up training - Lack of career development & succession planning Failure to appropriately respond to major event impacting the Authority Governance: Business Continuity - External events (fire,power outage, IT outage, natural disaster etc) interrupting IT and business operations > 10 days Failure to appropriately prevent, detect and respond to major fraud against the Authority Governance Inability to respond in a timely manner to changes in Market environment
 (competition) Governance - Internal fraud (staff) - External fraud (Customer/Other) - IT access (internal/external) - Lack of appropriate tone from the top on fraud - Tolerance/Culture - Lack of appropriate policy framework - Robbery/theft - Barriers to entry lowered - Major economic event (eg FX change) leading banks to focus on Authority's member base - Exit by existing market participant - Current market participants performing poorly (service) and not meeting customer needs - Lack of Market intelligence & response plans - Staff morale - Loss of staff - Sustainability of operations - Drop in service levels leading to Customer disatisfaction - Inability to operate and provide services to Members for prolonged period of time - Loss of members - Financial sustainability - Loss of Authorit's Fund - Reputation Loss - Financial loss to Authority - Staff safety and morale Major Moderate Extreme - Competition for key skilled resources a) Strong performance management processes and career development planning/focus b) Succession Plan c) Training & Development Plan d) Staff Retention Policy e) Strong recruitment practices (a) Some weaknesses (b) Some weaknesses (c) Some weaknesses (d) Some weaknesses (e) Satisfatory Some weaknesses Largely controllable Moderate Unlikely Moderate Major Likely Extreme - External events (fire, power loss or loss of IT Server etc) a) Insurance (only for properties) b) Regular testing of emergency response c) Data backup offsite (not in place) d) Power back up generator (UPS - uninteruptable power supply) (in place) e) Business stress testing (a) Satisfactory (b) Some Weaknesses (c) Satisfactory (d) Some Weaknesses (e) Some Weaknesses Some weaknesses Largely controllable Moderate Likely High Minor Almost certain High - IT technology advances (external fraud) (a) Biometric Technology for staff and customers (b) Fraud Policy (c) Fraud awareness training (d) Withdrawal process - validate bank account & verify identity of member prior to
 processing (e) IT access/Security controls (f) Segregation of duties in key processes (a) Some Weaknesses (b) Satisfactory (c) Satisfactory (d) Some Weaknesses (e) Some Weaknesses (f) Satisfactory Satisfactory Partially controllable Minor Likely High - Loss of members and deposits & loans - Threat to ongoing sustainability - Loss of staff Minor Moderate Moderate - Society Act changes - Competitor performance a) Market research and intelligence; member survey, suggestion box.
Partially (b) Complaints register controllable (a) Some weaknesses (b) Some weaknesses Some weaknesses Minor Unlikely Low © 2017 KPMG, a Fiji partnership, is part of the KPMG International network.

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13 Document Classification: KPMG Confidential KPMG’s Outputs: Snapshop risk profile with mitigation impacts Insight to the: • • • • ‘as is’ risk rating extent of mitigation appropriate resource allocation gap to the target 1 .

Insignificant 2.

Minor 3.

Moderate 4.

Major 5.

Severe 6.

Catastrophic Severity / Consequences Definition Is expected to occur in most circumstance 6.

Almost certain Highly likely it will occur in most circumstances 5.
Highly likely Will probably occur in most circumstances 4.

Likely y t i l i b a b o r P / d o o h i l e k i L Might occur at some time 3.

Moderate TARGET ?

Could occur at some time 2.
Unlikely May occur only in exceptional circumstances 1 Rare 1.2 1.1 B B A B B A A 1.3 1.4 1.5 B A A Gross Risk as at Mar 17 Net Risk as at Sep 17 Net Risk as at Sep 18 Target A B Risk ID Description Target Risk ID Description Target 1.1 1.2 1.3 Failure to develop and implement a corrective and preventative maintenance program for all the ports infrastructure Inability to maximize commercial and productive activities on the Authority's land Inability to attract, train and retain key personnel 1.4 1.5 Failure to appropriately respond to major event impacting the Authority Failure to meet financial return expectation of the Company’s key stakeholders & clients © 2017 KPMG, a Fiji partnership, is part of the KPMG International network.
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14 Document Classification: KPMG Confidential Risk Brainstorming What do you think are the key things that could stop CMFL achieving its strategic objectives?

Vision: To be the leading manufacturer and processor of coconut products and beyond in Fiji and the South Pacific.

Mission: To operate an efficient and profitable company that provides consistently good returns to its customers and shareholders.
Values The key value for the organisation are as follows:  Team Work  Success  Integrity  Reliability  Quality © 2017 KPMG, a Fiji partnership, is part of the KPMG International network.

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15 Document Classification: KPMG Confidential Thank you The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.
Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.

No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

© 2020 KPMG, a Fiji partnership, is part of the KPMG International network.

KPMG International Cooperative ("KPMG International") is a Swiss entity.
All rights reserved.

The KPMG name, logo are registered trademarks or trademarks of KPMG International.

Document Classification: KPMG Confidential Copra Millers Fiji Limited Key Risks Outlined below are the preliminary key risks identified in the review of the documents provided by Copra Millers.
For discussion and feedback of management and the Board Risk ref Risk definition and summary Inability to maintain a consistent supply of raw materials to meet the production capacity of the Mills - CMFL heavily relies on the consistency of the raw materials supply from the farmers to meet the production capacity of the XX mills around Fiji and also the production targets set by CMFL.

In the Corporate Plan for 2019, this is a key objective 'Supply Chain Management'.
A number of factors have adversely impacted the supply chain including natural disasters, pest & diseases, lack of farmers initiative, lack of a strategic replanting program for coconut, unreliable transportation program and also the level of government assistance.

Notable increase in the supply of raw materials since 2016 after recovery from Tropical Cyclone Winston.
Inability to maintain the consistency of raw materials has ripple effects on other key processes including production, distribution, human resources, finance and ultimately the achievement of the company's strategic plan.
Production targets set by the Company vs actuals: 2018 - 2020 Number of farmers by region and kilograms per farmer: 2018 to 2020 Inability to utilize the Mills to full capacity, improve machine efficiencies and to boost production - A core process for CMFL is the milling and production of raw materials into finished goods.

The operational efficiencies and capacity of the Mills is highly critical to the achievement of the production targets set by the company.
The company has Mills operating in the following locations: - XXXX Key factors that could impact the operations of the Mills include old/aged equipment, lack of expertise in operating machines, explosion of inadequate repairs & maintenance schedule, significant increase in operating costs boilers, irregular power supply, sabotage of machines, of machines.
The strategic plan outlines a number of strategic initiatives including installing new machines (crude oil expeller), robust repairs & maintenance schedule, monitoring factor expenses, etc.

Production capacity of the Mills vs targets: 2018 - 2020 Number of machine breakdowns by Mills: 2018 - 2020 Efficiency ratios of Mills: 2018 to 2020 Inability to attract, train and retain key personnel - The company employs 25 staff which comprise of 3 management staff and 22 non-management staff.
There are 5 staff in Suva Office and 20 staff in Savusavu.

The HR function is responsible for recruitment process, staff exit, performance reviews, training & development, succession planning, staff disciplinary procedures, OHS and staff leave management.

The HR function of the company is governed by the HR Policy V5 which was revised in Feb 2019.
Key challenges that impacts HR include inability to attract the right people, inefficient recruitment processes, weak organisation culture, staff fraud and improper conduct, inadequate oversight & supervision, poor leave management, weak overtime management, OHS issues, inadequate training programmes and performance management system.
Failure to appropriately respond to major event impacting the company - Considering the nature of its operations, the company could be severely impacted by major external or internal events.

Some of the events are considered 'uncontrollable' risk while others are 'partially controllable'.
External events comprise of the natural and man-made events: - Incidence of Fire - Incidence of Power Outage - Incidence of IT Outage - Natural disaster including earthquake, tsunami, cyclones and flooding - OHS issues These major events may impact certain key processes of the company such as the supply chain of raw materials, mills production, operations and administration and human resources.
Major events could result in significant disruption to business as usual, low supply of raw materials, low production levels, damage/loss to infrastructure, injury or loss of staff and financial losses.

Failure to appropriately prevent, detect and respond to major fraud against the company - Fraud could have a major impact on the reputation, operations and financial affairs of the company.
There are mainly three types of fraud which include management fraud (risk of override of controls/ poor governance practices), internal fraud committed by staff, and external fraud committed by customers or 3rd parties.

Number of fraud cases from 2018 to 2020.

Opportunities for fraud could include IT access (internal/external), robbery/theft of inventory/assets, weak culture/ behavioural patterns, poor tone at the top/governance, control deficiencies, poor oversight and monitoring.
Document Classification: KPMG Confidential Risk ref Risk definition and summary Failure to meet financial return expectation of the key shareholder (being Government of Fiji and the farmers) - The company has projected to achieve a sustainable level of profits for the financial years ending 2019 - 2021.

Even without the government grant, they project to achieve profits of $233k - 2019, $289k - 2020, and $354k in 2021.
Financial performance from 2016- 2017 indicates consecutive operating losses for the two years.

However, the 2018 and 2019 financial results shows turnaround and improvement in the financial performance of the company.

Key issues impacting financial performance include - no growth in sales, high cost of goods sold, reduce gross margins, gross margins not able to cover operating costs, and increasing operating costs.
This is also excarbated by competition, market risks and poor oversight of budgeted costs.

Failure to comply with key regulatory requirements - Regulatory compliance is a fundamental aspect of good governance and the company is regulated by various bodies.

As a company (is CMFL a private or public company), it is governed by the requirements of the Fiji Companies Act 2015 and also has to comply with relevant taxation and labour laws / regulations.
Additionally, there are other laws & regulations that the company has to comply with such as the environmental regulations, OHS regulations, LTA regulations (e.g., weight restriction), FNPF Act, Food Securities Act, Key challenges that could impact the compliance to regulatory requirements are the lack of understanding / awareness of the regulations, regular changes in regulatory requirements, policies & practices not aligned to regulatory requirements, inadequate compliance.
Inability to respond to changes in market dynamics - The company operates in a highly competitive market for its final products including coconut oil, virgin oil, etc.

There are strong competition for raw materials and finishes products and the company needs to be more proactive and strategic in anticipating the changes in market conditions and optimising the upside or mitigating any downside.
Key factors to drive this initiative include management oversight, sound marketing & promotion programs, in-depth market intelligence, delivering quality products in a timely manner.
- List of top 10 customers - List of competitors in the market - Market share for CMFL Failure to respond to events that could severely impact the community and environment - Working in collaboration with key stakeholders including the farmers and communities is fundamental to the success of the company as it heavily relies on them to achieve it strategies and to ensure sound operational performance.
Maintaining sustainable development and promoting green growth is also critical environmental friendly organisation.

to uphold the reputation of the company as an Key issues that could impact the company reputation in the community and the environment include lack of proactive engagement with communities, inadequate corporate social responsibility, and unethical practices impacting reputation.
Inability to quickly respond to machine breakdown for key plant and equipment - In consideration of the heavy reliance of the production process on the sound operations of the plant and equipment, the servicing and maintenance of machines and equipment is critical.
Key matters that result in inability to quickly respond to breakdown include the lack of availability of key spare parts, lack of scheduled maintenance, lack of robust reporting by operators in terms of machine failure, lack of expertise in operating the machines, and general safeguarding & security of these machinery.

Fail to implement strong corporate governance practices Having a sound corporate governance framework is fundamental to the success and good reputation of the company.
Good systems and processes of corporate governance promotes strong tone at trust, accountability, commitment, transparency, and ethical behaviour.

Good corporate governance also consists of having a board of directors governance framework, robust assurance framework (three lines of defense), sound risk management practices, effective compliance framework and good whistle- blowing platform.
the top, effective communications, Poor corporate governance leads to lack of trust, reputational issues, unethical behaviours, fraud and irregular activities, weak tone at top, lack of strategic direction, poor risk mitigating/treatment plans, and inability to achieve commercial success.

Inability to respond to deficiencies in the internal controls framework Policies and procedures are in place to govern the key processes including human resources, financial process and Mill operations.
It is fundamental that these guidelines have been developed to address the kep process gaps and pain points, and also reflect best practices that is relevant to the process or organisation.

Additionally, some of these policies should be aligned to regulatory requirements.

Furthermore, the knowledge and awareness of the internal controls and also having a control conscious culture is also critical to the organisation.

Compliance to policies, procedures, and controls is also a critical element.
The assurance & compliance framework to test and check the effectiveness of the design and compliance to such frameworks is not formally in place.
Document Classification: KPMG Confidential Copra Millers Fiji Limited ("CMFL"): 2020 Strategic Risk Register - Risk Summary (all risks) Risk Id Risk Issue Inability to maintain a consistent supply of raw materials to meet the production capacity of the Mills Inability to utilize the Mills to full capacity, improve machine efficiencies and to boost production Inability to respond to adverse movements in world market prices Gross Conseq.
Gross Lik’hood Gross Risk Rating Major Likely Extreme Major Moderate Extreme Major Moderate Extreme Inability to attract, train and retain key personnel Moderate Moderate High Major Unlikely High Control Effective Rating Net Conseq.

Net Lik’hood Net Risk Rating Net Conseq.
Net Lik’hood Net Risk Rating Some weaknesses Some weaknesses Some weaknesses Some weaknesses Some weaknesses Major Moderate Extreme Major Moderate Extreme Major Moderate Extreme Major Moderate Extreme Major Moderate Extreme Moderate Moderate High Moderate Unlikely Moderate Minor Moderate Moderate Major Rare High Moderate Unlikely Moderate Failure to appropriately respond to major event impacting the company Failure to appropriately prevent, detect and respond to major fraud against the company Failure to meet financial return expectation of the key shareholder (being Government of Fiji and the farmers) Failure to comply with key regulatory requirements Major Moderate Extreme Satisfactory Moderate Unlikely Moderate Moderate Rare Moderate Major Moderate Extreme Moderate Moderate High Inability to respond to changes in market dynamics Major Unlikely High Failure to respond to events that could severely impact the community and environment Inability to quickly respond to machine breakdown for key plant and equipment Fail to implement strong corporate governance practices Major Unlikely High Major Moderate Extreme Major Moderate Extreme Inability to respond to deficiencies in the internal controls framework Major Moderate Extreme Some weaknesses Some weaknesses Some weaknesses Some weaknesses Some weaknesses Some weaknesses Some weaknesses Moderate Moderate High Moderate Unlikely Moderate Moderate Unlikely Moderate Moderate Unlikely Moderate Moderate Moderate High Moderate Unlikely Moderate Moderate Unlikely Moderate Moderate Unlikely Moderate Moderate Moderate High Moderate Unlikely Moderate Moderate Moderate High Moderate Unlikely Moderate Moderate Moderate High Moderate Unlikely Moderate [Insert CMFL Logo] Copra Millers Fiji Limited Risk Management Policy _______________ April 2020 Next Review Date: April 2022 [Insert CMFL Logo] TABLE OF CONTENTS 1.
OVERVIEW ...................................................................................................................................................................................... 3 2.

OBJECTIVES OF RISK MANAGEMENT .................................................................................................................................... 3 3.
RISK MANAGEMENT – AN OVERVIEW .................................................................................................................................. 3 4.

CMFL RISK MANAGEMENT FRAMEWORK ........................................................................................................................... 5 5.
RISK APPETITE ............................................................................................................................................................................. 9 6.
RESPONSIBILITIES FOR RISK MANAGEMENT WITHIN CMFL .................................................................................... 12 The following definitions will be used during the workshop analysis: Business risk Consequence The threat that an event or an action will adversely affect the organisation from successfully achieving its objectives.

Business risk considers both the upside (risk as lost opportunity) and downside (risk as hazard) of risk.
The assessment of how significantly exposure to a particular risk could impact on the organisation.

The assessment of how likely it is that the organisation could be exposed to the risk taking into account the prospective frequency of occurrence.

Gross risk rating The “gross risk rating” represents a rating of the importance of the risk, Likelihood Control effectiveness Net risk rating without having regard to the mitigating actions in place to manage the risk.
This is determined having regard to the assessed consequence and likelihood for each risk.

An assessment of the effectiveness of the organisation’s control environment in managing a particular risk after due consideration is given to the external environment factors.

The “net risk rating” that is derived after taking account of the external and internal control factors and the resultant impact on the gross risk rating.

CMFL Page 2 of 14 [Insert CMFL Logo] 1.


OVERVIEW Copra Millers Fiji Limited (“CMFL”) Management Policy outlines the strategies and processes applied in implementing an effective risk management system for the organisation.

2.

OBJECTIVES OF RISK MANAGEMENT The objective of risk management at CMFL is to ensure:  Appropriate internal processes are in place for identifying, rating, managing and reporting on key strategic risks.
 Appropriate internal processes are in place for ensuring the strategic risk profile remains up to date and relevant to CMFL.

 An appropriate risk aware culture is embedded within and throughout CMFL.

 Available resources to execute controls are used optimally to manage key strategic risks and have regard to the ratings assigned to risks.
 Appropriate controls are in place for key strategic risks and that the residual risk (after considering controls in place to manage the risks) are consistent with the risk appetite of CMFL and of Management (which may vary from time to time).

 CMFL takes informed and considered risks.

3.

RISK MANAGEMENT – AN OVERVIEW 3.1 What is a risk?

A risk is defined as any uncertain future situation or event which could influence the achievement of CMFL objectives or realisation of opportunities.
For CMFL strategic risk profile, the central contextual consideration is the strategic objectives whilst for other risk management considerations, the objectives refer to the objectives of the process or decision that is being considered from a risk perspective.

3.2 What is risk management?


Risk management is the culture, processes and structures in place at CMFL that are directed toward taking advantage of potential opportunities (maximising upside) and managing potential adverse effects (minimising downside) of a risk.

Risk management is a continuous process, rather than an activity conducted at a point in time.
It demands proactive action on the part of management to continually update their understanding of risk and to develop cost effective solutions for the treatment of risks in the light of changing external and internal environments.

3.3 What is a risk management framework?


A risk management framework is a set of information components that provide the foundations and organisational arrangements for designing, implementing, monitoring, reviewing and continually improving risk management processes throughout the organisation.

CMFL Page 3 of 14 [Insert CMFL Logo] 3.4 Why manage risk?
CMFL in accordance with better practice, develops and maintains an appropriate Risk Management Framework so that applicable risks are identified, managed and minimised.

All business transactions and activities carry an inherent level of risk to an organisation’s financial position, operational requirements, sustainability and reputation.
A risk management system allows CMFL to be aware of the risks facing the organisation and make business decisions based on the level of risk that the organisation and those charged with governance are prepared to take.

Risk management allows the organisation to identify what risks it needs to manage well to succeed in the achievement of its strategic objectives and measure how effectively it is managing these risks and implement changes to improve the management of risk as necessary.
A robust risk management framework and supporting processes will enable CMFL to:  Minimise unexpected financial and operational results.

 Foreshadow and identify future emerging risks and act early to combat potential impacts of risk.

 Execute more efficient and effective procedures.

 Improve individual accountability.


 Encourage innovation, whilst providing greater transparency and input into decision making, ensuring a complete picture of the potential risks and their potential impacts are well understood prior to making a decision.

 Exploit business opportunities quickly with a full appreciation of risks involved.

3.5 The risk management process The CMFL’s risk management framework is outlined in Section 4 of this policy.

CMFL Page 4 of 14 [Insert CMFL Logo] 4.


CMFL RISK MANAGEMENT FRAMEWORK 4.1 CMFL adopts a framework for risk management that is consistent with the most recent Australian and International Standards on Risk Management (currently AS/NZS: 4360 and ISO 31000).

Importantly, this framework provides CMFL with the flexibility to adapt quickly to the changing needs of the business.
4.2 The Framework applied by CMFL is depicted below: I W E V E R & R O T N O M I T L U S N O C & E T A C N U M M O C I CMFL Page 5 of 14 [Insert CMFL Logo] 4.3 Establishing the context This phase establishes the basic parameters within which risk must be managed and sets the scope for the rest of the risk management process.

CMFL’s Corporate Plan 2019 is key to the context for risk, as this sets out the strategic objectives of CMFL at a point of time.
Regard is also given to CMFL Vision and Mission, and CMFL strengths, weaknesses, opportunities and threats (SWOT).

4.4 Identify risks This phase seeks to identify the risks to be managed.

This phase must ensure a complete set of risks are identified, including those that may not ultimately be able to be controlled by CMFL.
4.5 Analyse risks This phase seeks to analyse further the elements of the risk that help CMFL develop a comprehensive understanding of the risk, so that it can apply a rating to the risk and rank its risks from highest to lowest.

This includes:  Evaluating the existing controls in place to manage and treat the risk.

 Identifying the consequences of the risk to the organisation.

 Assessing the likelihood of the risk occurring within or to the organisation.
This analysis phase is generally conducted through workshops involving key staff to ensure staff are afforded with the opportunity to participate in the process and learn and understand the broader principles of risk management.

4.6 Evaluate risks This phase involves making decisions, based on the outcomes of risk analysis, about which risks need treatment and prioritisation and also those risks which are not acceptable (having regard to the risk appetite of CMFL).
4.7 Treat risks This phase involves the identification of the options for treating risks, assessing these options, and the preparation and implementation of treatment plans.

Figure 1 below illustrates how risk can be reduced through the application of controls and a mitigation plan.

Mitigation options include transferring, treating, terminating or tolerating risk.
These options should be assessed on the basis of the degree of risk reduction, the extent of any additional benefits or opportunities created, and the cost/benefit trade off.

CMFL Page 6 of 14 Figure 1: Reduction in risk through assessment and mitigation activities [Insert CMFL Logo] One or more of the following mitigation options can be used to treat the residual risk.
Transfer the Risk Transferring the risk involves another party bearing or sharing some part of the risk, commonly through contractual or insurance arrangements.

Treat the Risk Treating the risk involves reducing the likelihood and/or the consequences by changing the nature of the risk itself and/or developing additional controls.
Terminate the Risk Terminating the risk is achieved by deciding either not to proceed with the activity that contains an unacceptable risk or choosing an alternative more acceptable (less risky) activity which meets business objectives.

Tolerate the Risk After elements of the risk have been transferred or treated, there may be residual risk that has to be tolerated (or accepted) if the work unit wants or needs to undertake a certain function.
Risks may also need to be tolerated by default where nothing can be done at a reasonable cost to mitigate the risk.

CMFL Page 7 of 14 [Insert CMFL Logo] 4.8 Monitor and review This phase is vital to ensure that the agreed management plans are being implemented; risk records, rating and risk profile are kept up to date; risk policies remain relevant and up to date; an appropriate culture is continually developing and improving.
The risk profile and supporting risk records will be updated on an annual basis.

4.9 Communicate and consult This phase involves establishing a culture that is committed to openness and transparency on risk management and consulting within and external to CMFL as required.

A quarterly report on risk management activities and progress against action plans will be prepared by management and reported to the Board of Directors and to Management.

CMFL Page 8 of 14 [Insert CMFL Logo] 5.


RISK APPETITE 5.1 What is Risk Appetite?

Risk appetite is the amount of risk the Board considers is acceptable to expose the organisation to, in the pursuit of its strategic objectives, and considers both value creation (upside) and value preservation (downside).

These risks include those ‘material’ risks that are identified through CMFL’s Risk Management Strategy.

The Risk Appetite Statement (RAS) is an integral part of CMFL’s overall Risk Management Framework.
As such it should be noted that CMFL’s risk appetite:  fundamentally guides its risk culture and sets out boundaries on risk-taking activities.
These boundaries are defined by principles and metrics, both quantitative and qualitative, which must be considered as a collective set and not in isolation;  guides decision making to ensure major decisions are assessed through a prism of both opportunity and risk;  defines governance processes and disciplines to ensure adherence to all boundaries and underlying limits;  commits CMFL to operate within its appetite and causes it to move quickly to address actions and circumstances that may take CMFL outside of it;  is dynamic in nature, hence CMFL reviews it on a regular basis in conjunction with its strategic plans and business actions taken in changing macroeconomic environments; and  applies across all parts of CMFL’s operations.
An important component of defining CMFL’s risk appetite is to recognise that most risks cannot be eliminated entirely and that there is a ‘trade off’ between the level of risk on the one hand, and the actions required to reduce the risk.

The Board weighs up such trade- offs when assessing risks.

It may be possible to reduce some risks to a very low level; however in some circumstances the cost to CMFL (and ultimately the members) may outweigh the benefits.
In respect to the risk appetite at the individual risk (Level 3) level, information has been sourced from CMFL’s current Risk Management Strategy and resultant Strategic Risk Register.

The Strategic Risk Register helps CMFL to align real risk exposure with its management and escalation activities.

Once a risk tolerance level (target risk) has been breached, risk management treatments and business controls are implemented to bring the exposure level back within the accepted risk tolerance limit.
There are certain risks to which CMFL is intolerant.

Nevertheless, it is recognised that incidents will take place that create exposures to these risks.

At such times CMFL will take actions to address problems arising, and establish processes and controls to minimise the chance of reoccurrence.
CMFL Page 9 of 14 [Insert CMFL Logo] 5.2 The Risk Appetite Statement (RAS) The RAS is an integral part of the Risk Management Framework and represents the type and degree of risk that CMFL is willing to accept in pursuit of its business objectives, considering its capacity to bear risk and philosophy on risk taking.
Key Definitions relevant to the Risk Appetite Statement are as follows:  Risk capacity: means the amount and type of risk an organisation is able to support in pursuit of its business objectives.

 Risk appetite: means the amount and type of risk an organisation is willing to accept in pursuit of its business objectives, having regard to its risk capacity.

 Risk tolerance: means the specific maximum risk that an organisation is willing to take regarding each relevant risk.
In developing the risk appetite the Board has expressed the risk appetite at three levels which are interlinked: Risk Appetite at the level of the Organisation’s operations as a whole Level 1 Strategic A statement of the organisations’s appetite for risk in pursuing its purpose of achieving long term objectives through a sustainable business Risk Appetite and tolerance at a risk category level Appetite and tolerance for individual risks Level 2 Risk Category Level 3 Individual Risks A statement of the organisation’s appetite and tolerance for risk in pursuing specific business strategies A statement of the organisation’s tolerance to bear specific risks after treatments in order to achieve its objectives All three levels of risk appetite are interlinked as the: 1 Risk appetite at the strategic level (Level 1) expresses an appetite for activity in the context of the strategic direction and organizational purpose of CMFL; 2 Risk appetite at the risk category level (Level 2) expresses risk appetite in the context of operational activities or functions of CMFL undertaken to achieve business strategies; 3 Risk appetite at the individual risk level (Level 3) expresses risk appetite in the context of desired tolerances for each material risk encompassing both strategic and operational risks.
Refer section 4.7 above for further guidance on treatment of risks.

Within each level, risk appetite is expressed as qualitative statements and quantitative measures which are intended to guide decision making.

Further quantitative measures are expected to be incorporated into the risk appetite statement and embedded in the organisation as risk management continues to mature throughout all levels of the organisation.
CMFL Page 10 of 14 [Insert CMFL Logo] 5.3 Ongoing Assessment and Review To ensure that CMFL’s RAS remains relevant, practicable and is monitored and complied with on an ongoing basis, the Board must review the risk appetite and risk tolerance levels at least annually and must incorporate into the Trustee’s business strategy and planning cycle.
The following trigger events will necessitate a review of CMFL’s RAS:  The occurrence of an event which has a material impact on the operation of the RAS;  A material change in CMFL’s structure; and  A significant change in the strategic direction of CMFL.

The Board also has the responsibility to oversee a review of those risks that exceed CMFL’s risk appetite and tolerances.
The risk appetite and tolerances within CMFL are monitored via the assessment and reporting of the key trigger events (outlined above) and variance of net risk ratings of material risks from the target risks.

The Board is notified of any breaches of the risk appetite.

Following investigation by the General Manager, an Action Plan is developed and presented to the Board for their review, recommendation and approval.
The Board will also require the General Manager to review the underlying cause of the identified risk and implement updated processes to minimise likelihood of reoccurrence.

CMFL Page 11 of 14 [Insert CMFL Logo] 6.

RESPONSIBILITIES FOR RISK MANAGEMENT WITHIN CMFL Importantly, all people involved in the achievement of CMFL objectives have a role to play in the management of risk.
These roles are broadly outlined below: 5.1 CMFL Senior Management CMFL Senior Management is responsible for instilling a strong risk culture throughout the organisation and for ensuring that an effective process of risk management and internal compliance and control is in place.

5.2 Board of Directors In accordance with the Board of Directors Charter, management oversees the risk management process including the risk assessment process and the effectiveness and status of risk mitigation actions.
5.3 CMFL Management Management is responsible for the implementation of organisational policies to achieve effective risk management, and for ensuring adherence to policies by employees.

Members of management are responsible for identifying and evaluating risks within their area of responsibility and implementing agreed actions to manage risk.
General Manager’s specific roles The General Manager (GM) has the role of:  Endorsing the organisational risk profile and associated management action plans/mitigation strategies and submitting these to the Board of Directors for approval.

 Maintaining this policy document and ensuring that the risk management policy and underlying procedures remain current and relevant to the business in the context of emerging risk management practice.
 Establishing related procedures and ensuring procedural documentation incorporates risk management principles in accordance with the policy.

risk management  Developing and embedding risk management knowledge and culture within the organisation.

 Co-ordinating, facilitating and reporting the outcomes of the periodic organisational risk profile to relevant stakeholders and in particular the Board of Directors.
 Co-ordinating and facilitating the timely reporting of risk activities by the organisation to relevant stakeholders and in particular the Board of Directors.

This includes status of risk mitigation actions, expected timeframe for completion of action items, significant changes to the organisational risk profile and emerging risks.
CMFL Page 12 of 14 [Insert CMFL Logo] Managers specific role The line managers are responsible for:  Developing, documenting, approving, communicating, maintaining and reporting of procedures within their work unit to give effect to this policy.

 Contributing to the development of the organisational risk profile.

 Establishing, complying with, and implementing risk mitigation actions within their area of responsibility.
 The timely reporting of risk management activities within their area of responsibility to the GM.

This includes status of risk mitigation actions, expected timeframe for completion of action items, significant changes to the organisational risk profile and emerging organisational risks.

This includes any breaches, incidences of fraud or suspected fraud, non-compliance with legislation or internal policies or procedures.
5.4 CMFL Staff All employees are responsible for ensuring compliance with the requirements of the risk management policy and risk related procedures.

Employees must report any potential risk exposures to their line manager.
5.5 Assurance providers CMFL external and internal auditors play a key role in monitoring and reporting to the Senior Management on CMFL management of risk by:  Assessing the risk mitigation actions and internal controls in place to mitigate risks as they relate to the financial statements.

 Assessing the extent of compliance with various procedural/legislative/regulatory requirements as they relate to the financial statements.
Providing recommendations to enhance CMFL risk management and internal control framework.

CMFL Page 13 of 14 [Insert CMFL Logo] CMFL Page 14 of 14 2018 AUDIT REPORT –PAC RESPONSE - Fiji Broadcasting Corporation Ltd FINANCIAL INFORMATION 1.

Reasons  40% increase in wages & salaries is not only due to bonus pay out but is mostly constituted of 2 Yearly staff salary increments – staff were previously on much lower salary brackets which resulted in staff turnover and loss of talent.
All salary bands were re-evaluated and staff were placed on near current market rate.

The first assessment/ alignment after board’s approval took place in the year 2016, followed by the second more significant one in the year 2018.

The next one is scheduled for the financial year 2020.

 Decline in profit before income tax for current financial year (2018) is also a result of high programme acquisition costs (an increase by 76%).
Since Local production costs are quite high, most TV content acquired are from overseas and are invoiced in USD currency.

However, it must be noted that USD currency also strengthened in comparison to the previous years and has been strengthening throughout the current financial year.

(2018) It is to be noted that FBCL’s total revenue had actually increased by $3m – a 13% increase as compared to the previous year.
 The Company’s core Operating Revenue is from –advertising income, programs and special events sponsorships, which have also shown a remarkable increase (a 22% increase from previous year).

Hence, the above figures substantiate the reason for a performance bonus pay-out which is linked to the FBC’s PMS policy.

This was paid to successful recipients based on the achievement of their individual KPI’s.
The Company bonus was paid out based on the entity’s positive operational financial results for the year ending 31st December 2017.

OTHER SIGNIFICANT MATTERS: 1.

Absence of Risk Register Disaster Recovery Plan - Enclosed.

This plan covered various aspects of business continuity plan which is in line with the consistent radio and television broadcast services.

Also as recommended by the auditors, a draft version of FBC’s Risk Register was provided.

FBC’s Risk Register – enclosed.

2.


Regular Board Meetings Not Held The appointment of board members was delayed, hence only 3 meetings were held in this financial year.

The Line ministry- Ministry of Public Enterprise was informed of all important decisions.

Timely update/ correspondences was done via email and the Ministry of PE was also updated in a timely manner.

Even though the board did not meet as anticipated, approvals/ updates and decisions were sought by means of email correspondence.

3.
3.

Long Outstanding Accrual This relates to the broadcast licence fees owing to Telecommunications Authority of Fiji.

FBCL had recorded an accrual of $20,505 per annum since 2013 based on initial licencing agreement.

A copy was provided to the auditors for verification.

The FBCL does monitor accruals in a timely manner to determine whether it is appropriate to continue to record it as a liability.
In this instance, it was a prudent decision as per accounting standards to record this as a liability, which the FBC has to pay in near future.

As per CFO’s correspondence with TAF, it was confirmed that this needs to be paid, however this invoice from TAF.

Telecommunications Authority of Fiji is yet to bill FBCL for this.

largely depends on receipt of official 4.


Public Service Broadcast Fee Based on the Cabinet’s decision in 2012, grants/fee or special funding from the Government of Fiji, as the shareholder, were treated as a capital contribution.

As such, grants/fee or special -funding by the Government of Fiji were treated as additions to equity rather than being recognized as operating revenue of the Company.
Effective from 8 March 2016 and based on the Cabinet’s decision in 2016, grants/fee or special funding (now referred to as Broadcast Service Fee) from the Government of Fiji, as the shareholder, is treated as operating revenue.

This is to align the accounting treatment for all State Owned Entities (SOEs) in accordance with International Financial Reporting Standards (IFRS).
As such, PSB Fee paid by the Government of Fiji after 8 March 2016 has been recognized in the statement of comprehensive income as operating revenue.

SUSTAINABLE DEVELOPMENT GOALS (SDGS) We at the FBC do everything as per our operational plans which is submitted to our line ministry and which is in line with national plans.

Our regular planning documents are updated and is accessible at and through our line ministry.
Annual planning documents submitted to our line ministry in the September 2018 included: 1.

FBC 2019 - Employment & Industrial Relations Plan.

2.

FBC 2019 - Statement of Corporate Intent 3.

FBC - Strategic Plan 2019-2021 Other initiatives include:  Gender Equality is supported and promoted by the two public service broadcast radio stations (Radio Fiji One & Radio Fiji Two) and the FBC Television.

 The FBC promotes Equal Employment Opportunity.


EEO is fair treatment in employment, promotion, training, and other personnel actions without regard to race, color, religion, sex (which includes gender, sexual harassment, and pregnancy), age, national origin, reprisal (for prior EEO activity), physical or mental disability, genetic information, status as a parent, and sexual orientation.
 Gender equality is not only a fundamental human right, but a necessary foundation for a peaceful, prosperous and sustainable world.

Providing women and girls with equal access to education, health care, decent work, and representation in political and economic decision-making processes will fuel large.
sustainable economies and benefit societies and humanity at Implementing new legal frameworks regarding female equality in the workplace and the eradication of harmful practices targeted at women is crucial to ending the gender-based discrimination prevalent in many countries around the world.

 The FBC has formulated Standard Operating procedures which are incorporated in the employee handbook.

A copy is provided to all staff and during training and induction process of all recruits.
 The FBC had QMS in place and all policies and procedures are provided to various departments heads and updated and amended in a timely manner.

 The FBC has MOUs with Asian broadcasters (AIBD, ABU, AVN) in promoting gender equality.

A lot of trainings are offered to women in the workplace.

 The FBC pays annual membership fees for Women in Business for our aspiring women leaders.

As a result, the members are able to attend various conferences and workshops.
 The FBC promotes gender equality through the Selection and Recruitment process, however, individuals are employed solely on their suitability for the position.

 The FBC has a Women’s Forum which is chaired by the CEO.

This is a quarterly forum attended by all women at the FBC to discuss and share development and growth opportunities.
FIJI BROADCASTING CORPORATION RISK REGISTER 2018 Compiled by the Finance Team Risk Register Table of contents Introduction Risk terms Risk and directors What is risk appetite?

Aligning risk appetite Reserve Bank of Fiji Corporate Governance Code for Capital Markets Identifying, reporting and reviewing risk Risk identification and preliminary assessment Business and organizational risks How are companies managing the commonly identified risks?
Appropriate risk-taking Organization risk cycles A risk culture Assessing and treating risks  A step by step approach  Qualitative and quantitative techniques  Likelihood and consequence  Creating a likelihood/ consequence matrix  Risk control, mitigation or management.
Roles and functions of directors Personal risks for directors Insurance Identifying and addressing dysfunctionality Data collection, metrics, reports, early warning and key response triggers Conclusion Appendix: FBCL Risk register 3 4 4 5 7 7 9 9 9 14 16 17 19 32 24 24 25 25 29 31 32 35 36 38 39 40 2 | P a g e Introduction Standards for risk management have been produced by many professional bodies (e.g.
Institute of Internal Auditors (llA), International Standards Organization (ISO) and, Committee of Sponsoring Organizations (COSO)).

A useful definition of risk for company directors is provided by AS/NZS ISO 31000:2009 where the definition of risk is: The effect of uncertainty on objectives.

While the definition provided in the COSO Enterprise Risk Management - Integrated Framework: The possibility that an event will occur and adversely affect the achievement of objectives.
Directors are interested in taking risks to gain rewards.

They must consider the opportunity (upside) as well as the adverse effects (downside).

In his book Against the Gods - a history of risk, Berstein claimed that risk comes from the Italian 'Risicare' - to dare.

Directors must be prudently daring.

Another useful comment is: Risk management is about taking risks and not about not taking risks.

This is an important concept.


Too many novice directors and managers see risk management as a constraint on business rather than an opportunity.

Note: The purpose of risk management is to identify potential events that may impact on an entity, quantify the impact and likelihood of the occurrence and then manage the risk in accordance with the organization’s risk appetite.

3 | P a g e Risk terms Terms used to describe risk vary and require a common understanding by directors and the organization.
In this session the following three terms are used.

Risk appetite - is generally understood to be the amount of risk that will be accepted in meeting the organization’s goals.

Risk tolerance - is measurable and is most often described as the amount of loss an organization is willing to accept.

Risk profile - does not remain fixed and will change according to changes in the environment (ie a change in strategy, the economy, the competitive environment).
It must be monitored and updated on a regular basis.

Risk and directors Company directors should understand risk.

Their understanding is often based on information which can be sourced from:  The organizations of which they are directors.

 Their advisers and the advisors to their organizations.

 Their own experience and understanding of business.

 The political, social and economic environment in which business operates, has operated in the past and may operate in the future.
 The directors' own enquiries and professional advice.

In risk management there are generally considered to be two types of risk: 1.

Inherent risks - risks that have been identified but not treated, controlled or managed.

2.

Residual risks - risks that have been treated, but nevertheless some of the risk remains and is retained by the organization.

It is unlikely, or impossible, that all risk can be eliminated.

It is a sign of poor corporate health when too much inherent or residual risk is retained.
It is equally a sign of poor corporate health when organizations try to reduce residual risk below the level that is appropriate for their operations.

It is important to highlight the importance of risk as an opportunity as well as a threat.

For example, a risk that presents a significant opportunity should be considered differently to a 4 | P a g e risk that generates little opportunity.

Risk management for directors is about taking risks in a controlled environment and it is not about not taking risks.
What is risk appetite?

In defining risk appetite, the board and directors should ensure that the appetite aligns to the risk culture, the purpose, vision and values of the organization.

What comes first - the vision, purpose, and values or the risk appetite?

Modern risk theory suggests that investors have a risk appetite that can be communicated via the boards to the executives who can then develop a strategy, including vision, purpose and values, to meet that appetite.
Most companies are not able to start developing their risk appetite from a conceptual basis and prefer to develop a strategy which they then analyses to decide if the risks appear to be manageable to provide results within an acceptable range and with an acceptable likelihood.

Strategy and risk appetite usually follow an iterative process involving discussing, evaluating, challenging, and finally benchmarking against good practice and the aspirations of shareholders and other stakeholders.
Directors should play an active role in:  Establishing the risk appetite for the organization.

 Establishing and regularly revisiting the risk appetite of the board itself.

 Ensuring that directors receive active (rather than passive) reports that inform them on key issues and risk appetite influencers.

Such active reports set out triggers and indicators, and report against the parameters and tolerances set out in the risk appetite enunciated by the directors.
To do this directors need to understand:  Their own risk appetite.

 The board’s risk appetite.

 The organization’s risk appetite.

These should be in harmony even if the nature of the risk faced at each level and across the organization may be different, and change over time.

Reflection - personal risk appetite Your personal risk appetite: making a decision to cross the road Crossing the road comes with a wide range of inherent and residual risks.
What level and type of risk is involved in this everyday activity?

We may make different decisions about where we decide to cross or whether we wait a couple of seconds to let the oncoming car pass us by: • At night.

• When we are with other people.

• • For a wide range of other reasons.

If we are in a hurry.

5 | P a g e Does this reflect our risk appetite?

Does our risk appetite change depending on the circumstances?

In each case our behavior is a manifestation of our risk appetite.
What are the factors we may need to consider in formulating our risk appetite for crossing the road?

• We will be late for a meeting.

• We may be hit by a car and not arrive at all.

• We may have to spend time in hospital or be permanently disabled.

• We may cause an accident as the driver of a car swerves to avoid us.

• • Our behavior may damage our reputation in some way.
• Our behavior will cost the community money by disruption, use of emergency services If we may be hit by a car we will miss seeing our children or grandchildren grow up.

or hospital and medical facilities or insurance / legal costs.

Do we have a set risk appetite for crossing the road or do we change our appetite all the time?

Would our appetite change if we became aware of a statistic for how many people on average are killed in pedestrian accidents in our area each year?
Would it change depending on the visual or other triggers we see, such as a policeman standing beside us?

We may give effect to our risk appetite by, for example, walking to a pedestrian crossing or a street light.

Do we have a formulated risk appetite that we have thought about for crossing the road?

Perhaps the most ardent risk manager does, but the rest of us have an intuitive appetite; we are unlikely to have gone through a formal process to establish this.
To complicate things further, some of the road-crossing risks have been treated.

Examples may be street lighting to improve our and car drivers' view at night, speed restrictions on cars and pedestrian crossings and design features of cars to reduce the effect of the impact on the pedestrian.

Some of the risks are in the hands of the car driver and possibly out of our control.

What is the probability that the driver will see us or may be drunk?
We can be informed by statistics, reports and our own knowledge, and be able to reasonably defend our judgement but it is our decision to cross the road when and where we do.

As a company director every time we cross the metaphoric road and make or not make a decision individually, we do so in the context of our own risk appetite.

6 | P a g e Aligning risk appetite Although it is important to know and recognize our individual risk appetite this is not enough for a diligent director.
Having recognized our own appetites we must then consider the appetite of the shareholders and other stakeholders.

Sometimes a director will allow a company to take risks that he or she would not personally take and at other times the same director may require a company to forego risks, and hence rewards, that he or she would happily face in their private life.

The only correct risk appetite is the one that suits the needs of the company.
There is a large difference between forcing a board to compromise by meeting your own personal risk appetite, and helping a board to carefully decide what constitutes an appropriate organizational risk appetite.
Reserve Bank of Fiji Corporate Governance Code for Capital Markets Although the Corporate Governance Code for Capital Markets was developed especially for the listed corporate sector, it is common sense good practice and should be widely adopted across other sectors, including the not-for-profit and government sectors.

Recognize and manage risk The Corporate Governance Code for Capital Markets identifies the following matters for consideration by boards of listed companies in regard to Principle 10.

1.
1.

Establish a sound system of risk oversight and management and internal control.

This implies that the board and directors should participate in and oversight the establishment of the system.

Ultimately the board is accountable and should ensure that this process is rigorous.

2.

The risk management system should be designed to: • • Identify, assess, monitor and manage risk.

Inform investors to material changes to the company's risk profile.
The board should establish a risk profile and create triggers and reports that will help identify material changes to the profile and so that the board can act in response to the changes.

7 | P a g e Best practices 1.

Risk profiling.

Each company shall determine the material business risks it faces.
Risks may include but are not limited to: operational, environmental, sustainability, compliance, strategic, ethical conduct, reputation or brand, technological, human capital, product or service quality, financial reporting, legal and market-related risks.

The board needs to identify the material risks and review these, adding to them or reducing their number as things change.
The board must also monitor and regularly review the definition of materiality, the nature of controls and reporting arrangements and the extent to which those controls are appropriate and within the risk profile of the company.

2.

Policies on risk oversight, management and internal control.

The company's risk management policy should clearly define the roles and responsibilities of the board, audit committee, or other appropriate board committee management and any internal audit function.
Management should develop, implement and review the company's risk management and control system.

The board should review the effectiveness of the implementation of the system at least annually.

The board needs to ensure that reporting and control systems are appropriate and are likely to inform the board of issues and changes in circumstances that may require a redefinition of the material risks or changes in the company's strategy.

3.

Risk management committee.


The company may form a separate risk management committee for risk oversight and risk management but the ultimate responsibility rests with the full board.

While the work may be done by management, the accountability will rest with the board, and therefore directors need to be satisfied with the rigor of the reporting systems in place.
8 | P a g e Identifying, reporting and reviewing risk Directors should assure themselves that information and reporting systems exist in the organization that are reasonably designed to provide to senior management and the board itself timely, accurate information sufficient to allow management and the board, each within its scope, to reach informed judgments, concerning both the corporation's compliance with law and its business performance.’ Risk identification and preliminary assessment The ‘three classes of risk' approach One means of approaching risk identification, often attributed to Donald Rumsfeld, is to consider three classes of risk: 1.
The 'known- known' risks- those risks that we know we know about, for instance those that are obvious and often easy to rate and rank.

These form the majority of risks in an enterprise risk management system.

2.

The 'known-unknown' risks- those risks that we know we know about, but it may not be obvious when they will manifest or occur.

These risks are widely applied in enterprise risk management systems and include emerging risks.

3.
3.

The 'unknown-unknown' risks- those risks that we don't know about (yet).

Such an event may have been the idea that terrorists would take over a plane and fly into the twin towers in New York.

Business and organizational risks There are seven 'traditional risks' that many business people expect to see explicitly addressed.

These are market risk, financial risk, operational risk, project risk, regulatory risk, technology risk and disaster risk.

1.
1.

Market risk The following questions provide an insight into market risks, and also provide the basis for considering risk appetite, reporting and controls in this area: • When we take a product or service to market, will it sell?

• What happens when the market moves or changes, and what happens when product or service becomes commoditized or less distinguishable?

• How price sensitive is the market?


• What will happen to imported or exported goods if there is a change in overseas regulations or movement in foreign exchange rates?

• How will this be managed?

9 | P a g e 2.

Financial risk In establishing financial risk, the following are questions to consider: • How much money are we spending?

• How much money are we making?

• How do we know?

It follows that one major financial risk facing organizations is spending more money than they are making.
Many directors find financial reporting daunting and feel that they lack the skills to properly analyse the risk that reports are incorrect or to identify the warning signs in correct reports.

Accounting profit and cash flow may be very different.

Directors are not expected to be accountants but they must read and understand the financial statements and make diligent inquiries about them before they disclose information outside the organization.

3.
3.

Operational risk Operational risks arise due to an organization’s activities.

The main treatment strategy for operational risk is strengthening business processes.

The aim of this strategy is to put in place systems and procedures that ensure consistent, measurable and appropriate (in line with strategic and operational plans) outcomes.
The quality movement, ISO standards such as ISO 9000, the Good Manufacturing Programs (GMP) and many business books set out methods and systems to understand and manage these risks.

Each director must understand the key risks in the organization’s operations.

It is not enough for a committee or an expert on the board to have this understanding; it must be shared.

4.

Project risk Many companies operate through discrete projects.
The main imperative of projects or major initiatives is to achieve the result on time, within budget, according to specifications and/or due diligence.

Project decisions or initiatives should be informed by the organization’s risk appetite and the risk management framework that operates as a result of it.

It is not always enough to deliver these imperatives; they must be delivered with the organization intact.
Risk management becomes of major importance not the least because of the application of Murphy's Law - if something can go wrong, it will.

10 | P a g e 5.

Regulatory risk Company directors have to comply with a complex, and sometimes conflicting, array of regulation.

Directors need to be aware of the regulations that affect their business and aware of the risks of non- compliance.

Major regulatory risks include: • Not understanding the regulation in which your organization operates.
• Ignoring the regulation in which your organization operates.

• Creating a culture that permits the regulation to be ignored.

• Not telling employees and stakeholders about the regulation, how to comply and why it is important to comply.

• Not finding out quickly that the conditions exist that might permit the regulation to be ignored or breached.

• Not finding out that the regulation is about to be broken or was broken.

• Ignoring the initial approach of the regulator by design or incompetence.
• Not investigating the cause of the problem so that it will not happen again.

• Not learning from the experience personally, and more broadly as an organization.

6.

Technology risk Almost all organizations in Fiji have an increasing level of technology dependence.

Consequently, technology poses a significant area of risk to many organizations, requiring a level of attention at board level.
Some areas of technology risk include: • • Inadequate business continuity planning in the event of technology disruption, leading to increase costs, loss of revenue, loss of customers and reputational damage.

Inadequate information management processes resulting in duplication of information systems, lack of integration of data and an inability to provide timely information for management and directors.
• Loss of data leading to a privacy breach, reputational damage to the company and • potential regulatory and legal action.

Inappropriate information system function position in the organizational and internal relationships with the broader company, leading to ineffective information system delivery, suboptimal utilization of resources and additional costs.

7.

Disaster risk Fiji's location in the Pacific 'ring of fire' and tropical cyclone belt exposes it to a range of natural disasters.
These include cyclones, floods, droughts, earthquakes, tsunamis and landslides.

The damage and loss impact of these events for the country, its communities and organizations is very high.

Fiji has a National Disaster Management Office which is the government's coordinating center for natural disasters.

When a natural disaster occurs there is involvement by international, national and local organizations.
11 | P a g e Consequently, disaster management needs to be part of any organization’s risk management system.

In particular, procedures in the event of a disaster need to be current and well documented, including emergency signage and contact numbers, and most importantly, staff need to be trained.

Directors' perceived risks There are many risks that directors have to consider in undertaking their role, and in considering if they should take on a particular role.
From research with 241 company directors in Australia, undertaken from 2004 until 2006, 10 the key risks as perceived by the directors were: • Finance.

• Government.

• Resources.

• Reputation.

• Strategy.

• Leadership.

• Competitors.

• Mergers or acquisitions.

Of themselves, the risks in this list are unremarkable; however, in discussion about how risk will manifest the directors' perception differs from the way in which risks are often portrayed by management or specialist advisors.
The ideas below will help to focus the board discussion on the issues of most concern to directors: • Finance - financial risk is rarely considered in terms of fraud or of financial statement inaccuracy.

These things are embarrassing and annoying, but they are rarely 'company killers'.

The key risk perceived by directors is cash flow and the need to have sufficient money when it is needed.

• Government - government is seen as the second most likely factor to prevent a company from achieving its strategy.
In discussion, this risk is characterized as a risk of change in the legislative and regulatory environment.

Government action is, clearly, outside the control of most companies.

However, that is no excuse for failing to develop systems for monitoring likely developments or for briefing politicians and their advisors on the implications of change.
12 | P a g e • Resources - when discussing the risk of inadequate or misapplied resources most directors go straight to the human resources of the organization.

The most common risk is a lack of appropriately skilled resources at an affordable price.

Another resource risk, which is frequently mentioned, is loss of intellectual property with departing staff.

This tends to be more of an issue for directors in organizations where the HR plan is only weakly linked to the strategic and business plans.
 Reputation - the risk of reputation damage is often presented to the board in terms of failure to manage the reputation rather than in terms of avoiding activities which are not acceptable to modern day society.

 Strategy - many directors voice concern that they may have simply endorsed the wrong strategy.

In particular they fear that the organization may not have the skills required for implementation.
Lack of decision-making skills at other levels in the organization is also cited as likely to exacerbate this risk, as are poor communication of the strategy and a lack of the leadership required to drive it.

 Leadership - many directors claiming a lack of confidence in the leadership ability of management raise lack of skill in change management, and lack of management support for the endorsed strategy.

If management does not really support the strategy no board can expect it to be delivered.
The CEO may also be a key risk to the board and boards are often slow to address CEO failure.

Another frequently raised leadership issue is board failure.

This is frequently characterized as a failure to reach consensus, which leads boards to pursue small 'no regrets' actions, rather than make bold progress.

 Competition - when discussing competitor activity boards tend to mention issues and risks in a way which would normally be covered by a traditional risk management system.
These include customers switching, lack of pipeline of development products, blockage of suppliers by a more powerful competitor, and unexpected competitor actions.

 Mergers and acquisitions - boards and management usually agree on how to report and manage these risks.

Integration risk tends to be the key internal weakness, whilst adverse publicity for failure of an expected deal is the most common external weakness.

13 | P a g e How are companies managing the commonly identified risks?
Companies manage the risks of competition and of failed merger and acquisition activity quite well.

A possible hypothesis would be that when board and management concur about what the biggest risks are, and share a common vocabulary for discussing these risks, the company is better able to effectively address and manage the risks.

Unfortunately, as shown by the charted responses below, the risks board and management tend to agree upon are the two least common risks perceived by board members.
The risks that more commonly worry directors tend not to be raised.

They also don’t reside in the risk management system and are therefore not managed explicitly.

The simple observation is that companies cannot manage well risks for which no management plan has been developed, implemented or monitored.
14 | P a g e It is important that directors are able to raise the issue of what may be an unpalatable source of failure, without becoming personally associated with the issue and risking personal opprobrium.

It can be hard to raise contentious issues, especially when the board wishes to support management in implementing their strategic plan and do not wish to be seen as unduly critical.
Bringing in an external facilitator, conducting an anonymous process or engaging the chair in a one-on one discussion are all legitimate ways to raise these issues.

It is important to create an environment where directors feel safe to voice their concerns even though these concerns are not palatable to management.

Once risk concerns are discussed it is much easier to develop a suitable management response.
Many companies, however, do not yet seem to have developed a robust mechanism for getting these issues openly discussed.

A simple way to identify risks Another way the director can identify risks is to ask a series of questions such as: • What can happen?

• Who can cause it to happen?

• Who can stop it?

• Who can prevent it?

• Who or what can minimize the damage if it does occur?

This approach should provide a basic list of risks.
The following list of questions expands on the above and provides further guidance in identifying risks: • What can pose a serious threat to the organization in areas such as financial or other viability, quality of service delivery, the law and legal or reputational?

• What is likely to undermine the purpose of the organization or the organization’s strategic plan and its implementation?

• What is likely to cause a serious threat to the organization’s reputation or probity?
• What may interrupt the implementation of the strategic and operational plans?

• What may call into question the basic accountability and controls, and limit the ability of the organization to report?

• What would represent a significant deviation from the organization’s constitution, or in the case of a government agency, its charter, legal or legislative authority or the public interest?"

15 | P a g e Appropriate risk-taking All decisions made by directors carry an element of risk.
Risk managers often focus on the distinction between risk and uncertainty.

This is an important point and critical to engineers and those who are able to work with effective probability analysis.

For directors, this separation is not helpful, as much of their decision-making is based on skills and experience, and is informed by quantifiable data.
The concepts of reasonableness and informed decision making are important for directors; they form the basis for legal judgements on the appropriate discharge of directors' duties.

Directors need to consider risk in terms of the potential lost opportunity (the risk associated with foregoing an opportunity) and the risk to the organisation's strategy during its execution and day to day business operations.
People with the wisdom of hindsight may come to a different conclusion than that arrived at by directors operating with imperfect information and making judgements about future consequences of current actions.

To make a claim to the 'reasonable person' defence directors must be able to demonstrate that they acted on the basis of information that was sufficient to allow any reasonable person with the same level of skill and duty to reach a similar judgement and hence undertake a similar course of action.
It is important for directors to have an accurate record of the information they relied upon to make each decision.

This can normally be obtained from the board minutes and papers.

Additional information, such as newspaper reports that directors could, or arguably should, have read around the time of their decisions is also likely to be considered when judging whether risk taking was reasonable or reckless.
Directors also need to demonstrate that the board has made appropriate time available to discuss risks and their management as well as discussing the risks associated with any particular decision.

They should demonstrate a sound approach to risk identification and management.

16 | P a g e Organisation risk cycles Every organisation operates in cycles.

These cycles may be related to the industry or product life-cycle, or simply an annual or rolling business cycle.
Risk appetites and risk management approaches and systems vary over time and should be managed in a cycle.

They can be influenced by factors including: • • • • • • • The size of the organisation.

Its financial health.

Stage of maturation.

Competition.

The nature of the decision.

The state of the economy (locally and internationally).

The issues confronting the organisation.

There is no time when a risk management strategic planning and operations cycle review is not appropriate.
Some cycles may be simple, and some may be highly sophisticated and influenced by wide ranging qualitative and quantitative analyses, active reports and detailed and challenging decision making dynamics.

In any case, the cyclical framework below is helpful in arriving at effective risk based decision making.
As mentioned earlier, many organisations develop a plan and then analyse the risks and adjust the plan in an iterative process rather than first setting a risk appetite and then developing a plan to deliver it.

17 | P a g e The strategic risk cycle Regardless of whether the risk appetite or the strategic plan is developed first this model requires a systematic approach to risk management.
The establishment of risk appetite and the identification of risks facing the organisation and/or the board must fit the purpose, vision and values of the organisation.

These risk decisions inform the development or revision of the strategic plan.

On this cycle, two-way traffic is permitted and encouraged.

At any time in the process, the environment, dynamics or risk appetite of the parties may change.
Similarly, the aspirations of the organization or its shareholders may change and require a corresponding change in strategic operational or implementation plans.

The risk appetite should be readjusted to reflect what is possible or to change processes, structures and behaviours to address the problem; a flexible approach to the cycle is required.

The risk cycle is essentially a cycle ensuring appropriate decisions leading to sustainability, review and renewal.
How often or how frequently the cycle is completed depends on the nature of the organisation and the issues it is confronting.

Most organisations have a short term or annual cycle and a longer term strategic horizon of five years.

18 | P a g e An important element of the cyclical approach is board monitoring of key risks and early warning indicators to enable this flexibility to occur.

Another important element is stakeholder inclusion and communication.
This ensures all critical parties are included and informed and hence are more likely to operate within the risk culture.

Directors and the boards that follow this system are likely to be well placed to have effective risk management systems.

A risk culture Once the risk appetite for the organisation is established and aligned to the vision, purpose, and values of the organisation the directors need to establish a risk culture.
They should ensure that their views are communicated across the organisation including critical stakeholders, contractors, suppliers and related parties.

It is important to remember that communication is a two-way process.

Issuing statements, policies, and edicts is only a small part of communication.

Modelling behaviours and values will help to reinforce the desired culture.

Directors also need to take actions to find out what the current culture is like.
They need to interact with staff in the workplace to gain a 'feel' for the culture.

These interactions are fraught with danger as directors must be careful not to upset the chain of command or to over• emphasise any single aspect of the culture or activities at the expense of others that management may be wishing to emphasise.

Good communication with the CEO is essential when directors interact with staff.
Organisations that have a board audit and risk committee will often use the committee's interaction with management personnel as one element of assessing risk management culture.

Developing a risk culture is critical to effective risk management.

For directors, a risk culture takes a number of forms and can include the following seven elements.

19 | P a g e 1.
19 | P a g e 1.

Leadership in creating and maintaining a reporting culture  The directors and board need to create a culture where people are prepared to report errors, near misses, unsafe conditions, inappropriate procedures and any other concerns they may have.

 The directors, board and CEO influence this by setting reporting and performance parameters and taking it seriously, i.e.

directors ask for active reports against agreed parameters informed by their risk appetite.
The board rewards the CEO for achievement across the organisation through their KPls.

 To encourage people in the organisation to report.

Directors should facilitate effective internal and external complaints handling and near miss reporting systems.

Directors and the board should say what they want and ensure the CEO delivers it.

 Systems often fail because accountabilities and reporting are incorrect.

For example, organisations still consider the number of complaints to be a definitive measure.
In fact the nature of complaints, the manner in which they are managed against agreed standards, the extent and effectiveness of root cause analysis and what complainants think of the complaint experience after the event, are also useful indicators.

Counting complaints alone is more likely to prevent staff from reporting them than to encourage staff to deal with the issue.
 In some countries, such as Australia, whistleblowing systems can help in establishing a reporting culture and in turn a risk culture.

If staff feel encouraged and protected in using a whistleblowing system they are likely to engage in the risk culture sought by the board.

Fiji does not have any formal whistleblowing legislation or mechanisms in place to protect the rights and freedoms of whistle-blowers from victimisation.
There is some reference to the protection of sources in the 2007 anti-bribery legislation, but given the small size of Fijian society, many consider anonymity and protection of whistle-blowers would be difficult to achieve.

20 | P a g e 2.

Leadership in creating and maintaining a just culture  The way in which directors and the board signal to staff and stakeholders that blame and reporting should be handled has a big impact on culture.
 If blame is the routine response to error, then reports will not be forthcoming.

Directors should ensure that blame is reserved for defiant behaviour, whether knowing or reckless, and malicious behaviour.

Blame should not be attached to reporting less palatable information the organisation needs to hear.

3.

Leadership in creating and maintaining a learning culture  Modelling a risk culture where information is reported and processed in a conscientious way and changes are made accordingly.
 Directors and the board as a whole should take a lead on modelling appropriate behaviours.

This includes acknowledging when the board is making a judgement in the absence of perfect knowledge (such as deciding to expend money on responses to climate change) or when the board is taking calculated risks.

 Directors set an example by their own behaviour and a learning organisation will have a learning board that takes time to develop new skills and gain new knowledge.

4.
4.

Leadership in creating and maintaining a flexible culture  Directors should aim to create a risk culture where the risk management system is informed and flexible.

It should allow risk analysis and consequent decision making processes to vary, depending on the urgency, the size of the risk, and expertise of the people.

 This does not mean the risk appetite and metrics should vary across the organisation.

It does mean that changes can be made to take account of changed circumstances 21 | P a g e 5.
Leadership in creating and maintaining a risk aware culture  Directors and boards are mindful of risk but not afraid of risk.

Typically this requires an understanding of the risk appetite, and a willingness to take and not take risks at the appropriate time consistent with strategic and operational plans.

 Whatever is done at this level can set an example for the rest of the organisation either directly, or by 'following the leaders'.

6.
6.

Leadership in creating and maintaining an ethical culture  Directors and boards need to consider how the ethics and culture of the organisation impinges on its risk framework.

Most leadership aspects can be undermined if there is an inadequate or inappropriate culture throughout.

 The organisation will take its lead from directors as to what is ethically acceptable, and the relationship between ethics and risk.

7.
7.

Communication  Directors, the board and CEO must take the lead in identifying, defining and communicating the risk culture.

This is a legitimate aspect of the strategic framework of the board.

 Directors should ensure that there is an effective strategy to communicate the risk culture of the organisation to employees and stakeholders.
 In addition to policies and procedures, the best means of doing this is through the links between the vision, purpose and values of the organisation and its code of ethics I conduct.

22 | P a g e  Accountability arrangements for all supervisors and managers should reflect a requirement to demonstrate commitment and compliance with the framework for the risk culture, risk management and the risk appetite.
23 | P a g e Assessing and treating risks A step by step approach There are many tools and frameworks to assess, rate and rank risks.

Information derived from assessments helps directors to rate, rank, and subsequently treat risks.

After treatment some residual level of risk will usually remain.

Directors should be confident that the organisation can effectively cope with the level of residual risk.
For the board, an appropriate risk management process should involve the following steps: Identify risks by using one or a combination of the methods.

 Set the context by aligning the vision and purpose with the needs of the shareholders.

  Analyse the risks by considering their likelihood and consequence (or impact).

 Evaluate the risks and determine how they will be managed and what level of residual risk is appropriate.

Refer back to the pre-determined level of risk appetite.
 Treat the risks and ensure that the desired level of risk is retained.

 Determine how to apply and communicate the outcome of each step in the process.

 Determine the review, reporting and control framework for any implementation or activity resulting from the risk decision making of the board.

This process may seem complex but once the model is established it is simple and intuitive to apply.
After a catastrophic event it may well be necessary to be able to show that the director and board followed a rigorous and well-informed process in arriving at both critical and what may have appeared at the time, mundane decisions.

Qualitative and quantitative techniques There are many ways of assessing and managing risk.

All require good data and careful analysis.

Both qualitative and quantitative methods are widely used.

In some cases the result of the analyses may appear counter-intuitive.
Directors need to be sure probability and other assessments are based sound data.

Directors should understand the methodology used and make sure that it is explained to them if they have any difficulty understanding.

A healthy scepticism is appropriate.

Where the models and assessments are internally derived then any scepticism must be handled sensitively.

24 | P a g e Likelihood and consequence One way of considering risk is to break it down into two critical parts likelihood and consequence.
Systems to manage risks based on this type of analysis should be found in every well run organisation.

They are the tools that a director would use to assess the risks the organisation faces, and form a view about how much risk to accept, and what to do about it.
Creating a likelihood / consequence matrix Likelihood / Consequence matrices are ineffective if they rely on random guesses made without the benefit of sound information, analysis and forethought in selecting the rating, ranking, and score of the risks.

Therefore, this technique requires the director to know their own and their colleagues' conceptual framework for likelihood and consequence.

Most people use a numerical scale to reflect likelihood and consequence.
Others use a simple scale based on the board's view that the treatment is satisfactory, unsatisfactory or needs improvement.

Board decisions about both likelihood and consequence should be based on common language and metrics for determining likelihood and consequence across the organisation.

Organisations that do not have this common language and understanding have no way of appreciating the relativities of risk analysis undertaken by the board and managers in different parts of the business.
Operational risk cannot be effectively assessed in the broader context of the organisation if it cannot be discussed using words that everybody understands.

Risk likelihood and consequence ratings underpin the organisation's risk policy and culture.

They also allow widespread training on risk management, where the curriculum is based on the enterprise risk management system of the organisation, the policy, culture, risk appetite and relevant metrics.
25 | P a g e Table 1 is a helpful example of a clear communication and analysis of risk likelihood.

Directors should discuss how they wish to characterise each 'step change' in the level of likelihood.

The likelihood table may vary depending on the nature of the decision.

Many directors find it easier to use tangible examples in establishing their risk appetite.
For consequence it is appropriate that directors have discussions about the type of risks that are facing, and then attribute a score to how they wish to rate the consequence.

Table 2 is a good example.

It is relatively easy to give a dollar value to tangible risk issues such as loss of net income.

It is much more difficult to rate issues such as death and reputation.
The table should allow for the possibility of risk consequences even if the stated appetite is such that the risk is to be avoided at all costs.

Directors are unlikely to accept a workplace 26 | P a g e death under any circumstances.

In Fiji a recent study identified annual injury related hospitalisation and death rates at 73.4 and 7.3 per 100,000 workers.
On this basis the likelihood of a fatality is a matter that should be discussed even if the conclusion is that it will be rated as catastrophic or beyond.

Similarly, it is inevitable that most high profile organisations will find themselves in the media in a way that is beyond their control from time to time.

In his book Safety, Culture and Risk, Andrew Hopkins discusses the issue of risk systems and their failure.
He suggests the following questions might be asked: 'Why did the individual or business unit fail or behave in the way they did?

What were the error enforcing conditions?

What were the organisational circumstances that contributed to the event?'

These questions are also useful in formulating a risk appetite by considering some possible risks and how the director may respond to them.

This technique is known as reversion to hindsight.


Once the relativities of the risk are established they can be recorded in a variety of ways.

Table 3 represents an example of this.

Note however, that this table does not allow for the rating of the risk for a second time after the initial assessment and the decision to accept certain residual risk.
It is important that having rated and ranked the risk in its initial form and applied whatever controls and treatments are appropriate to achieve a target risk rating level within the board's risk appetite, the assessment-is then done again on the residual risk to see if it has converged with the target level.

This way the board can check and monitor the level of risk it chooses to retain, and set in place communication strategies and controls that relate to the retained residual risk.
27 | P a g e There are a number of approaches to deciding how to rate the risk and devise a treatment strategy.

Risk management is never static and always depends on environmental factors that will change.

For large and complex initiatives and decisions, complex and sophisticated risk management strategies should be used.

As the circumstances change so do each of the elements from appetite through to consequence and likelihood rating.

Final and residual risk rating should be updated after this.
The range of risks confronting a board can be plotted on a matrix.

Use of this matrix after careful risk analysis and rating will flag many types of risks and their consequences in their various manifestations.

Sometimes it is the risks with high likelihood and low consequence that are the hardest to rate.

As single risks they have little consequence, but as the frequency of occurrence increases the risk may require different action I treatment or control.
A good example of this is customer complaints and pro-active sampling of customer experiences with the organisation.

Figure 3 shows a rating table with consequences rating on the bottom axis and likelihood on the side.

This is a simple but effective means of understanding and rating risks but it is only indicative.

Without detail and a framework for attributing values linked to risk appetite, it can lead to misunderstanding and poorly formed decisions by directors and the organisation.
28 | P a g e Risk control, mitigation or management The language to describe these concepts varies but as a general rule control, mitigation and management strategies include: Avoidance Not proceed with task, project activity or decision that is likely to generate the risk.

Acceptance Accept the risk in the context of the risk appetite and establish appropriate management systems and finance plans to mitigate or control the risk within acceptable parameters.
Agree on reporting metrics to ensure the risk(s) are understood and controls are realistic and effective.

Reduce occurrence (likelihood) Develop processes, or put in place controls, to reduce the likelihood of the risk occurring such as new or revised systems or processes, preventative maintenance, limiting tolerances and thresholds with appropriate active reports and early warning triggers, reviews and audits, testing and inspections.
This is analogous to reducing the likelihood of a traffic accident by only allowing qualified persons to drive.

Reduce consequence This can be done by either managing (treating) or transferring the risk: •Transfer all, or some part of the risk, to a second or third party through insurances, contractual arrangements or organizational structures.

•Develop new systems of work, processes and controls.
This is analogous to reducing the consequence of a traffic accident by wearing seat-belts, driving a car with airbags, reducing speed, etc.

Retain Accept the risk in the context of the risk appetite and management systems.

Establish frameworks for moving forward whilst keeping the risk as low as reasonably practicable.

Establish a capital and finance plan, management systems and active reporting.
29 | P a g e Residual risk and internal control considerations Once the various risk treatments have been implemented the organization will be left with a range of residual risks.

The movement from the inherent risk (the untreated risks) to the residual risks relates to the treatment and internal controls that have been put in place.

The following diagram represents how the inherent risks and residual risk might be represented.
Figure 4: Inherent to residual risk movement Where there are significant movements in risk (e.g.

risks 1, 2 and 3 in the above figure), directors would focus to ensure that the appropriate controls are in place, effective and operational.

If they are not, the organization may be operating at the inherent (higher level of) risk.

Directors may seek assurance from internal audit and control self-assessment as to the effectiveness of the controls supporting the significant movement of risk.
30 | P a g e Roles and functions of directors The roles and functions of directors in risk management will depend on a number of factors.

Directors should consider the size of organizations, the performance and environment, life cycle, and competence of management and staff before establishing roles and functions for themselves, the board as a whole and the management to whom they delegate much of the day to day activity.
A board is expected to take an active role by setting risk appetite and developing and enforcing appropriate risk policies.

A risk policy need not be a long or complex statement.

There is some evidence to suggest that a brief policy, well supported by frequent accurate and active reporting, is easier to communicate.
Directors should play an active role in establishing the risk appetite for the company, establishing and regularly revisiting the risk appetite of the board itself and ensuring that directors receive active reports that inform them on key issues and risk appetite influencers.

Such active reports set out warning triggers and report against the parameters and tolerances set out in the risk appetite enunciated by the directors.
Obviously, directors will rely heavily on management for assisting them in all aspects of their role in risk management.

Once the basic policy and framework of risk management is identified, the board may delegate to the CEO and management the task of developing, implementing and reporting on the risk management system.
Management must be accountable through reports, and an inclusive process, to ensure that the board and directors are informed and involved, where required, within the framework of various delegations.

Risk management committees are also part of this process and within the framework of their delegations can work closely with management consistent with the committee's charter.

The management of enterprise risk lies with the CEO and in turn management.
Larger organizations may have a nominated chief risk officer (CRO) who has responsibility for implementing and monitoring the risk framework for the organization.

However, it is important that risk management remain an activity of all management Directors must resist the temptation to take roles beyond their positions.

(Note: in small organizations or at times of business critical decision making, the role of the board in risk management can be quite interventionist).
In most cases, the level of director and board involvement will turn on agreed principles, delegations and criticality.

Where possible, these can be defined in advance but active organizations rarely manage to stay within such boundaries so a degree of flexibility and trust is required.

31 | P a g e This is an important issue for directors.

It is appropriate that they ensure that all of these arrangements fall within the frame of their personal risk appetite.
All directors will have different risk appetites and this will sometimes be a challenge for chairs and CEOs.

Personal risks for directors Directors need to be aware of the risks that they face as well as the risks faced by the organization.

Some of the risks facing directors include: 1.


Inability or lack of skills to meet the challenges of the organization’s governance Director's should consider what skills are necessary to be a director and specifically of their suitability to be a director of each specific organization at this particular time.

They should also consider the skills of the board as a whole and take steps to optimize these.

2.

Reputation (i.e.


the risk to your reputation by joining (or not joining) a board, or in making a decision or strategic direction of the board) Directors will be judged to share the values and culture of their board colleagues and to espouse the values suggested by any decision the board makes during their tenure.
If a director believes his or her reputation may be harmed by joining or remaining on a board, or by association with a decision of the board, he or she should discuss this with the chair and, if the matter cannot be resolved, either resign or refuse to join.

Similarly directors should be careful lest the reputation of an incoming board member adversely affect their own reputation.

3.

Defamation, either by you or others Defamation is a constant risk for directors involved in open and frank discussion.
Sometimes an idle remark can be taken as imputation against the reputation of an individual or organization.

Board meeting discussions are generally confidential but there is no absolute guarantee of this.

A director's duty to inform the board of an issue affecting the organization does not constitute protection if, in fulfilling that duty, the director defames someone.
Directors should note the extent to which directors and officers insurance may protect them and the circumstances where such insurance may not cover them.

4.

Secrets and surprises from the board or organization that may emerge regardless of pre-appointment due diligence Directors should undertake wide ranging formal and informal due diligence before joining a board.
They should remain vigilant through questioning, demanding active reports and reading them, obtaining market information and intelligence, and 'corporate tyre kicking'.

32 | P a g e 5.

Secrets and surprises due to inadequate risk reporting and /or management Directors must ensure that reports presented to them are comprehensible, clear and aligned to the risk appetite, risk framework and established warning trigger and indicator frameworks.

They should also verify key information.

6.


Organizational or personal viability e.g.

obsolescence These things change over time and directors should be- on the lookout for organizational obsolescence at all material levels including the skills of the board, just as well as the organization’s products and services.

7.
7.

Board dysfunctionality, governance arrangements, committee charters, delegations and accountabilities Directors should ensure that the board is operating efficiently and Effectively including communication and decision making processes.

This does not suggest total collegiality.

Lack of open discussion and forthright exchange of views is a major risk.

Directors should recognize the benefits in clear delegation of authority and effective reporting requirements.
At all times, directors need to recognize that it is not possible to delegate all their duties, responsibilities and accountabilities.

Being a member of a board committee with responsibilities for risk does bring with it greater insight but may involve additional risks and issues for directors.

8.

Financial viability (e.g.


cash flow, financial resources, borrowing capability, current solvency) Directors cannot rely on the particular expertise of other directors and need to form their own opinion of these matters.

The need for independent opinion increases where the director sits on the audit and finance committee, but it remains significant at all times.

9.

Inappropriate or wrong asset valuations Directors need to understand the financial strength of the organization including its assets.
Directors must form a view of the value of the assets.

They may rely on external advice but must appropriately check and understand this.

This is an ongoing risk but one which manifests at times of critical strategic decision making and policy formulation.

Comprehensible expert advice supported by systems to preserve value over time and during times of crisis, are important for risk management.

33 | P a g e 10.
33 | P a g e 10.

Outstanding or emerging legal or regulatory issues, tax liability, claims likely to threaten the viability of the organization, strategic plans or your reputation Directors need to conduct due diligence prior to joining boards in this area.

Often such information is difficult to obtain at early stages of such events.

Directors must have systems in place to inform themselves of these issues.
Active reports including effective complaints and compliance systems and an effective risk culture are important.

11.

Your ability to contribute to the board Directors should know when they can no longer contribute and ensure that systems are in place to address this issue for other directors.

Directors should look carefully at the skill mix on the board and ensure they have access to appropriate additional skills if and when they are needed.

12.
12.

Conflicts of interest Directors should look carefully at the culture of disclosure of conflicts in the board and the organization.

Failure to have strong systems and culture around conflicts of interest is a major risk for directors.

This is not just a reputational risk but can call into question the integrity, reputation and viability of the organization.

13.
13.

Consequences of taking a role, or remaining on a board, for future opportunities as a director or in other roles Directors can make unfortunate choices in joining, not joining, or remaining on a board.

While a position may look attractive now, a strategic approach is required for board roles, just as it is in any other situation.

14.
14.

The competence or otherwise of risk management systems in the organizational a tool for guiding directors' personal decision making Directors may consider a checklist like the one in figure 5 to guide their understanding of enterprise risk management.

15.

The effectiveness, or otherwise, of the organizations work health and safety processes Directors may have personal liabilities in relation to failures of WHS processes.
34 | P a g e Figure 5: Enterprise-wide risk management (ERM) checklist Curre nt S ta tus Goa l a nd timing Action re quire d Sta ge s Risk appetite settings established: risk culture socialised across business; identification of risks; environmental assessment Risk analysis: classification, ranking against consequence, frequency tools, magnitude, frequency, probability Risk assessment- application of rating and ranking criteria, financing, estimation of costs of solutions Risk treatment, mitigation control, implementation, communication, review of residual risk Review of residual risk repeat steps to final controls, confirm reporting parameters Risk monitoring and review Insurance Directors should ask at least 3 questions about insurance.
 Do we have any?

 What does it cover and what does it not cover?

When may it pay and not pay, and in what manner?

 Can I see the policy?

It is important to ensure:  The adequacy of professional indemnity or directors and officers insurance at board level.

 The policy is reviewed annually.

 More generally having an insurance framework in the organization consistent with the board's risk appetite, for example not moving to self-insurance in workers compensation without a robust system.
35 | P a g e Identifying and addressing dysfunctionality Here are 10 steps to avoid dysfunctionality in risk appetite and risk management for directors and the organizations they govern.

1.

Have an effective and well defined risk appetite and communicate it across the organization.

Testing should be undertaken to see if it is understood.

Risk appetite should be linked to the organization’s code of conduct I ethics and be a feature of induction training for all staff at all levels, including directors.
2.

Have an effective risk management plan and agreed systems for identifying, rating, ranking, treating, controlling and reporting risks.

This will ensure consistency at all stages and ensure that it is known, applied and varied consistently and in accordance with the board's strategic risk framework and process.

3.

Establish a common language for risk management in the organization, including common or at least consistent and understood metrics and reporting frameworks.
This will permit confidence in an active and clear reporting framework.

For directors this provides the key to informed decision making, strategic planning and application of the risk management cycle.

4.

Ensure staff have training on risk management, and at a practical level, how to undertake a risk assessment in accordance with the organization’s metrics, identification and reporting framework.

If necessary, forms, computer aids and other assistance will be required.
There is no point in suggesting staff undertake a risk assessment if they have no training, no tools and don't know what to do when they have undertaken the risk assessment.

5.

Ensure that staff who participate and report are rewarded, and that those who do not are counselled.

This involves specific disciplinary arrangements, as well as strategic reporting and accountability requirements for key managers.
Active reporting by managers includes breaches and near misses, activities falling outside the risk appetite or risk plan, exceptions, and of course, the achievement and operation of the plan.

All industries have high risk elements.

6.

Ensure that senior staff and the CEO take the lead in risk management by demonstrating commitment and actively living up to the risk management approach.

Directors can support this through their actions and the discharge of their duties.
Amongst the important roles for directors is active participation and setting out their expectations and standards for reports and culture.

Directors need to monitor the communication strategy and any change management strategy.

36 | P a g e 7.

Ensure that the enterprise risk management plan is comprehensive, operational, inclusive and effective to ensure coverage of all aspects of the organization, and also as appropriate, is inclusive of stakeholders.

8.
8.

Ensure that the organization knows risk management is not about eliminating risk, but rather about managing risks taken, in an informed and open environment.

9.

Ensure that the system is robust enough not only to deliver timely warnings on the 'known known' and 'known unknown' risks but also those 'unknown unknown' risks.

The latter risk can be managed through the application of sound business continuity plans, disaster recovery plans and crisis management plans.
It also requires the establishment by the board of clear triggers.

10.

Ensure that the internal audit function sees risk management systems 'not working' as a major risk, such that the system and its elements are reviewed.

Ensure that the system is validated by internal and external review.

As with all of the lists in this course there are different ways of arriving at the same or similar conclusions.
37 | P a g e Data collection, metrics, reports, early warning and key response triggers From time to time, directors find themselves in situations outside their experience.

At these times it is difficult to know what data and information is necessary to inform the decision making process.

Finding metrics and performance measures to populate active reports for directors is often challenging.
Directors, guided by management and trusted advisers as required must give some substance to strategies for monitoring identified risks through the identification of warning or action triggers.

Using this information, directors can formulate requirements for active reporting to inform them when the triggers have been passed, why this has occurred and to guide action that must or may be taken.
In most organizations there are a variety of metrics and performance measures available to inform directors in establishing the triggers.

For example:  Data from repetitive processes such as manufacturing errors or lost time injuries.

 Data such as patterns from incident or near miss logs, complaints and customer satisfaction ratings.

 The cost of carrying out processes, sources of system and operations failures and possible issues such as the outcomes of exit interviews or breaches reports.
There are still many situations where data cannot be collected.

Experts and forecasters can be of assistance when dealing with the 'unknown unknown' or 'known unknown' risks.

38 | P a g e Conclusion Risk management is a process like any other in the work of a director.

It is important to strike a balance between the risks to the organization and your personal risks.

Obviously they cross over but there are critical differences.
The techniques for understanding risk appetite are the same in both cases but the inputs and values derived will often be different.

Important steps in managing both types of risk include:  Undertaking due diligence before joining the board and keep a watchful eye on those due diligence issues during your tenure.

 Taking an active role in developing and renewing the risk appetite.

 Taking an active role in developing and sustaining the risk culture of the organization.
 Forming a view on what type of active reports are required and what are the personal and board trigger points for action.

 Ensuring you ask questions in a timely manner with an appropriate balance of assertiveness and facilitation.

Being a director brings with it many obligations, and underlying them all is effective risk management.
39 | P a g e APPENDIX: FBCL Risk Register 40 | P a g e RISK REGISTER : 2019 T C A P M I Extreme High Medium Low 20 15 10 5 Unlikely 25 20 15 10 Possible LIKELIHOOD /PROBABILITY 30 25 20 15 Likely Risk Ref No.
Risk area Ownership Risk Description Cause or risk trigger Probability (“likely, possible, unlikely”) Impact (“extreme, high, medium, low”) Score Mitigation (Action taken/available to mitigate risk) Responsibility Assurance mechanisms Date last reveiwed KEY RISK AREAS R0001 All FBC Sites CEO/CFO R0002 All FBC Sites CEO/CFO R0003 All FBC Sites CEO/DTO R0004 All FBC Sites CEO/DHR R0005 All FBC Sites CEO/CFO Business interruption (Due to catastrophic events or system failures -hardware, software, telecommunications, Market developments (Volatility, intensified competition /new entrants, Mergers and acquisitions, market stagnation, Cyber incidents (Cyber crime, IT failure, data breaches etc.)
Natural catastrophes (e.g.

cyclone, flood, earthquake) Changes in legislation and regulation (government change, economic sactions, protectionism, etc) Possible causes: •Structure fires •Water damage •Loss of electricity or Businesses have strong competitors in the market and the manufactures indulge in cut throat Data breaches, network liability, hacker attacks or cyber BI.

In that: •Employees or customers Nature is an independent phenomenon and human beings have no control over it.
•Lack of privileges and immunities for the businesses and its staff; •Improper monitoring of Workplace Accidents Possible High Possible Medium Likely High Likely High Likely Medium R0006 All FBC Sites CEO/DTO Fire, explosion Possible High R0007 All FBC Sites CEO/CFO Political risks and violence R0008 All FBC Sites CEO/DSM Loss of reputation or brand value R0009 All FBC Sites CEO/DTO New technologies R0010 All FBC Sites CEO/DHR Theft, fraud, corruption R0011 All FBC Sites CEO/CFO Human error R0012 All FBC Sites CEO/DHR Talent shortage R0013 All FBC Sites CEO/DTO Failure of Utilities (e.g.
water and electricity) R0014 All FBC Sites CEO/DTO Machinery breakdown Government policies are unavoidable for business.

If a sudden change comes in monetary and fiscal •Reputation-reality gap- When the reputation of a company is more positive than its underlying reality, Business is characterized by rapid technological changes and rapid evolution of technological Business loss may also occur due to theft, forgery, lavish expenditure and top heavy management.
Human Mistakes made by employees in the course of their work.
This mistake is The businesses works hard to secure superior human resources for management, technology development, •EFL Power outage •Water distruption •Utility cut-off due to non- payment of bills Machinery breakdown may be caused by mechanical failure, electrical short circuiting, or a motor Unlikely Medium Unlikely Medium Unlikely Low Likely Medium Possible Medium Unlikely Low Possible High Possible High 20 15 25 25 20 20 10 10 5 20 15 5 20 20 •Installing sprinkler systems to minimize fire damage; •Maintaining machinery to prevent unexpected downtime; •Install Generator back-ups; •Purchasing security cameras and alarms to deter burglars and •Conduct regular competitor analysis •Base decisions on robust research and figures •Set clear goals and key performance indicators (KPIs) •Identify potential risks in advance •Ensuring back-up power sources are in place •Putting staff and processes in place to ensure technology is kept up to date and in good working order •Installing anti-virus and malware software •Set and manage preventive plans or Business Continuity Plan, which defines counter measures such as contingency plans and at the same time subscribed to various insurances; however, these plans and insurances may not guarantee to cover all the •Ensure staff have specific roles in place to manage and enforce your business compliance •Stay on top of new legislation and plan in advance how you will comply and what the impact on your business will be •Install safety features such as fire and smoke alarms, sprinkler systems and fire escapes •Ensure that you and your staff know where all the exits to your buildings are •Identify risks ask "How can political actors or conditions impact our business?
"; •Diversify sources of materials, suppliers, site locations, markets; •Reputational risk occurs when performance doesn't match expectations.

•Track evolving stakeholder expectations to manage the risk •Put a plan in place to manage a reputation crisis •Carry out appropriate research and development.
•The businesses, performance, and financial condition may all be adversely affected by product obsolescence and the appearance of competing products; •Robust recruitment process and background checking •Clear succession planning •Rigorous staff training •Performance Management Robust recruitment process and background checking Clear succession planning Rigorous staff training Performance Management •Since such superbly talented people are of limited number, there is fierce competition in the acquisition of human resources; •Use employee incentive or bonus schemes; •Back up generators and/or off grid solutions •Water storage on site or own bore hole •Move location for more reliable supply e.g.
rural locations have more/longer black outs •Follow recommended servicing and maintenance schedules •Keep stock of parts •Have contract with emergency/24/7 repair services •Train employees on safe use, maintenance and basic repair CFO/DTO CFO/DSM DTO DTO Maintain register for all potential risks Maintain register for all potential risks Maintain register for all potential risks Maintain register for all potential risks CFO/DHR Maintain register for all potential risks Maintain register for all potential risks DTO CEO/CFO Maintain register for all potential risks Maintain register for all potential risks Maintain register for all potential risks Maintain register for all potential risks Maintain register for all potential risks Maintain register for all potential risks DSM DTO DHR DHR DHR CFO/DTO Maintain register for all potential risks Maintain register for all potential risks DTO Jun-18 Jun-18 Jun-18 Jun-18 Jun-18 Jun-18 Jun-18 Jun-18 Jun-18 Jun-18 Jun-18 Jun-18 Jun-18 Jun-18 RISK REGISTER : 2019 T C A P M I Extreme High Medium Low 20 15 10 5 Unlikely 25 20 15 10 Possible LIKELIHOOD /PROBABILITY 30 25 20 15 Likely Risk Ref No.
Risk area Ownership Risk Description Cause or risk trigger Probability (“likely, possible, unlikely”) Impact (“extreme, high, medium, low”) Score Mitigation (Action taken/available to mitigate risk) Responsibility Assurance mechanisms Date last reveiwed OPERATIONAL RISKS OP001 IT Department DTO Hard drive meltdowns Power surge Possible High OP002 All FBC sites DTO Power failures EFL Power outage Possible High OP003 All FBC sites DTO Building fire Workplace Accidents Possible High OP004 All FBC sites DHR Occupational, health & safety risks • staff injury • product or service liability • ability to operate Possible Low HUMAN RESOURCE RISKS HR001 Human Resources Department FINANCIAL RISKS DHR Loss of key staff Brain drain Possible Low FN001 Finance Department CFO FN002 Finance Department CFO FN003 Finance Department CFO LEGISLATIVE & REGULATORY RISKS LR001 FBC Headoffice CEO/CFO Liquidity Risks: potential that an entity will be unable to acquire the cash required to meet short or intermediate term obligations Credit Risks: risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company Market Risks: risk posed to a financial institution's condition resulting from adverse movements in market rates or Uncontrolled and/or unexpected cash outlays Likely Medium Borrower fails to pay debts Likely Medium Adverse market conditions Likely Medium Regulatory Risks: is the risk that a change in laws and regulations will materially impact security, business sector or market.
• Media Industry Development Act 2011 (Fiji Media Act) • Companies Act 2015 • Public Enterprise Bill 2019 •Lack of privileges and immunities for the businesses and its staff; •Improper monitoring of legislative/regulatory changes applicable to the business, including due to poor communication with relevant authorities; Possible Low 10 20 20 20 10 10 20 20 20 • Get back-ups done • Check and test back-up • Store back-up at a remote site • Back-up generator • Schedule test every week • Schedule test of Fire Alarms • Ensure an effective Evacuation Plan • Attend to all building hazards IT Officer • Report to be prepared by the IT officer at end of month Transmission officer Building officer • Report to be prepared by the transmission team of all downtime hours • Report to be prepared by the Building officer • comply with law and regulation • train staff and compliance officer • put in place monitoring and reporting procedures OHS/ HR officer • OHS officer to organise workshops & trainings Jun-18 Jun-18 Jun-18 Jun-18 • Effective Staff Evaluation • KPI assessment • Implement training programmes • Sucession planning Human Resource Officer • HR officer to document systems, organise workshops, & review recruitment processes Jun-18 • Maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows Finance Officer • Daily cash flow maintained by the Finance officers • Stringent credit policies • Limit credit Finance Officer • Regular follow-up's on all outstanding credits by the credit controller • Monitor market trends • Mitigate by hedging interest rates and foreign exchange Finance Officer •Ensure staff have specific roles in place to manage and enforce your business compliance; •Stay on top of new legislation and plan in advance how you will comply and what the impact on your business will be; •Staff training and creating a culture of compliance within your business; •Ensure you have the appropriate analytics and processes in place to monitor your compliance; •Invest in compliance consultants; Compliance/ HR /Finance Officer • Interest rates negotiated by the management on a more frequent intervals for instance, every six months.
•Ensure staff have specific roles in place to manage and enforce your business compliance •Stay on top of new legislation and plan in advance how you will comply and what the impact on your business will be •Staff training and creating a culture of compliance within Jun-18 Jun-18 Jun-18 Jun-18 PUBLIC ACCOUNTS COMMITTEE QUESTIONS 2018 Audit Report on Government Commercial Companies, Commercial Statutory Authorities and Other Entities SECTION 6.8: ENERGY FIJI LIMITED OTHER SIGNIFICANT MATTERS Internal Use of Electricity 1.
Why is the Company unable to record accurate cost of internal electricity usage as part of its electricity expense?

In the past, the internal electricity usage was recorded as electricity cost and the contra entry went to sales.

This accounting methodology for treating internal usage of electricity was accepted by the past auditors.
In view of a different accounting treatment recommended by the Auditors in 2018, EFL has started recording the cost of internal electricity usage accurately from 2019 as part of cost of goods sold for the production of electricity based on the monthly weighted average cost of generation (hydro plus thermal).

We have commenced the accounting treatment using this methodology from 2019, which is considered the correct way to account for internal electricity usage.
Both the methodologies will not have an impact on the profitability of EFL, as revenue and expenses offset (old methodology) and cost of fuel is reallocated (new methodology).
The calculation for the 2019 internal electricity usage is tabulated below based on the average cost of hydro and diesel: _____________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________ 2.

What is the current status of creditors with debit balance?
EFL Team has met with Navision Financial Management System Service provider, Eclipse in May 2019 and have rectified the timing issue.
The updated ageing report has been rectified 1 Jan-19Feb-19Mar-19Apr-19May-19Jun-19Jul-19Aug-19Sep-19Oct-19Nov-19Dec-19GenerationkWh93,106,00088,189,952 91,962,359 90,135,880 84,878,970 78,925,002 80,401,040 80,179,595 73,872,57183,501,210 81,050,982 86,230,000 Internal UsagekWh123,426114,843 114,575 114,458 101,763 96,734 94,511 96,052 90,67592,158 123,675 103,013 Jan-19Feb-19Mar-19Apr-19May-19Jun-19Jul-19Aug-19Sep-19Oct-19Nov-19Dec-19Fuel Cost8,809,949.019,009,478.5910,513,542.2211,404,153.169,886,257.6612,707,000.6913,214,888.0812,982,129.8311,201,965.1712,163,801.859,964,393.2112,644,404.370.09 0.10 0.11 0.13 0.12 0.16 0.16 0.16 0.15 0.15 0.12 0.15 Pernix788,120.79915,125.56893,053.70926,617.22847,758.581,144,422.631,545,254.111,204,136.201,151,009.481,189,216.211,180,428.451,212,294.760.01 0.01 0.01 0.01 0.01 0.01 0.02 0.02 0.02 0.01 0.01 0.01 Generation O&M766,022.382,489,247.80784,164.441,330,520.72231,123.531,383,382.531,046,140.43251,917.06769,049.70778,077.93941,124.041,339,274.060.01 0.03 0.01 0.01 0.00 0.02 0.01 0.00 0.01 0.01 0.01 0.02 Total10,364,092.1812,413,851.9512,190,760.3613,661,291.1010,965,139.7715,234,805.8515,806,282.6214,438,183.0913,122,024.3514,131,095.9912,085,945.7015,195,973.190.11 0.14 0.13 0.15 0.13 0.19 0.20 0.18 0.18 0.17 0.15 0.18 TotalInternal Electricity Usage13,739.17 16,165.55 15,188.40 17,347.62 13,146.27 18,672.42 18,580.25 17,296.46 16,106.73 15,596.17 18,441.84 18,153.58 198,434.44 Break Down By CostFuel Cost11,678.92 11,732.31 13,098.76 14,481.42 11,852.78 15,574.23 15,534.07 15,552.15 13,749.94 13,424.91 15,204.58 15,105.39 166,989.48 Pernix1,044.77 1,191.69 1,112.65 1,176.65 1,016.39 1,402.65 1,816.44 1,442.51 1,412.82 1,312.51 1,801.21 1,448.24 16,178.55 Generation O&M1,015.48 3,241.55 976.99 1,689.55 277.10 1,695.53 1,229.74 301.79 943.98 858.75 1,436.05 1,599.94 15,266.42 Total13,739.17 16,165.55 15,188.40 17,347.62 13,146.27 18,672.42 18,580.25 17,296.46 16,106.73 15,596.17 18,441.84 18,153.58 198,434.44 GL CodeCost CentreLocationDrCrInternal Electricity Usage COGS245899991001198,434.44 Internal Electricity Usage - Fuel305399991001166,989.48 Internal Electricity Usage - Pernix31019999100116,178.54 Internal Electricity Usage - Generation O&M21982501100115,266.42 and now the debit balance is offsetted against the credit balance in the Aged Creditors Trial Balance.
In other words, the outstanding invoices have been allocated correctly to the payments made against these invoices.

Snapshot of the Aged Creditors Trial Balance as 31st December 2019 from Navision Financial Management System is shown below: Aged Accounts Payable Fiji Electricity Authority 22.

January 2020 1 Page Aged as of 31.

December 2019 Aged by Posting Date All Amounts in LCY Vendor: No.

: V0001..V2582, Vendor Posting Group: DOMESTIC, Date Filter: 01/01/19..31/12/19 No.
Name Balance 1 - 31 days 32 - 61 days 62 - 92 days 93 - 122 days More than \122 days Aged by Posting Date V0043 V0089 V0099 V0141 V0207 V0212 V0233 V0248 V0254 V0279 V0299 V0302 V0311 V0333 V0352 V0356 V0372 V0376 V0558 V0685 V0713 V0744 V0761 V0857 V0881 V0921 V1050 V1208 V1209 CARPENTERS MOTORS DOMINION WIRE AND CABLES PTE LTD ENGINEER PROCURE CONSTRUCT ( FIJI) PTE LTD HONEY DEW FARMS COMPANY PTE LTD MERCURE HOTEL MOBIL OIL (AUST) LTD NEWWORLD SUPERMARKET PACIFIC SAFETY & INDUSTRIAL SUPPLIES PTE LIMITED PATTERSON BROS SHIPPING(SUVA) Ramesh Crane Hire Ltd SAFEQUIP FIJI PTE LIMITED SAHAY BROTHERS LTD SIGATOKA ELECTRIC LIMITED SUVA BOOK SHOP THE WATERFRONT HOTEL TOTAL (FIJI) PTE LIMITED VATUWAQA INDUSTRIAL ENGINEERING LTD VINOD PATEL & CO PTE LIMITED ZAID ENGINEERING LTD DAYALS QUARRIES LIMITED D V MASTER'S CROW'S NEST RESORT BOLT FASTNERS PTE LIMITED SNP (FIJI) LIMITED VISIONS INVESTMENTS LIMITED CLIMATEC AIRCONDITIONING REFRIGERATION &ELECTRICAL WATER AUTHORITY OF FIJI KPSM SOLUTIONS PACIFIC PTE LTD PREMIER DISTRIBUTORS -170,265.80 -70,685.16 -170,265.80 -70,685.16 -69,023.69 -69,023.69 -28,425.00 -154.00 -4,715,433.29 -250.20 -3,332.00 -28,425.00 -154.00 -4,715,433.29 -250.20 -3,332.00 -47.00 -4,322.50 -83.20 0.00 -1,895.00 -50.00 -172.00 -149,565.74 -588.60 -1,048.35 -1,485.00 -11,376.00 -152.50 -170.00 -36,500.00 -177.00 -783.00 -300.00 -3,270.00 -1,308.00 -650.00 -47.00 -4,322.50 -83.20 0.00 -1,895.00 -50.00 -172.00 -149,565.74 -588.60 -1,048.35 -1,485.00 -11,376.00 -152.50 -170.00 -36,500.00 -177.00 -783.00 -300.00 -3,270.00 -1,308.00 - Aged Accounts Payable Fiji Electricity Authority 22.
January 2020 2 Page Aged by Posting Date No.
Name Balance 1 - 31 days 32 - 61 days 62 - 92 days 93 - 122 days More than \122 days V1262 V1390 V1391 V1395 V1401 V1527 V1619 V1704 V1735 V1767 V1867 V2179 V2262 V2274 V2406 V2436 V2478 V2487 V2519 V2526 V2529 V2531 Total (LCY) KHAN BROS BULLDOZING WORKS LTD CJ PATEL (PACIFIC) PTE LIMITED PACIFIC ENERGY SOUTH WEST PACIFIC LIMITED JANTY KANVAN LIMITED NORTHERN AIR SERVICES CHARTERS LTD VISION MOTORS LIMITED ADITYA'S AUTO WINCHES PTE LIMITED DYNAMIC SOLUTIONS LTD PERNIX (FIJI) LIMITED INTEC ELECTRICAL SERVICES MACUATA ELECTRICAL SERVICES OCEANIA GAS LIMITED RAMS CLEANING SERVICES LTD KARAN'S CIVIL & EXCAVATION PTE LTD PRINT ZONE TOTAL MECHANICAL & ELECTRICAL SOLUTION SERVICES VINEY HIRE SERVICES SOUTH PACIFIC ALUMIUM AND GLASS WORK RASHID'S BULLDOZING WORKS & BUILDING CONTRACTORS DIGMACH CIVIL & BUILDING CONTRACTORS PTE LTD SAIRAN CONSTRUCTION ISLANDS CABLE & POWER CONSTRUCTION PTE LTD -6,400.00 -784.80 -8,255,210.75 -109.50 -190.00 -5,565.40 -540.00 -1,637.00 -1,319,168.34 -4,095.00 -1,560.00 -754.17 -630.00 -796.00 -3,669.00 -2,900.00 -2,696.20 -3,670.00 -2,472.20 -12,600.00 -2,398.16 -18,255.00 -6,400.00 -784.80 -8,255,210.75 -109.50 -190.00 -5,565.40 -540.00 -1,637.00 -1,319,168.34 -4,095.00 -1,560.00 -754.17 -630.00 -796.00 -3,669.00 -2,900.00 -2,696.20 -3,670.00 -2,472.20 -12,600.00 -2,398.16 - -14,917,614.55 -14,917,614.55 100.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% _____________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________ 3.
What is the current status of the debtors with credit balance?

On a daily basis Customers themselves opt for advance payment of their electricity account to ensure that they don’t get disconnected for failure to pay or clear bills in a timely manner.

This is beyond EFL’s control and as such the report will continue to reflect credit balance to offset future electricity consumption.
This happens to the banks as well where customers prefer to advance pay their loans in anticipation of reduction the interest.

This is also beneficial from EFL’s working capital point of view as electricity usage are paid well in advance.

However, EFL will continue monitoring the credit balance refund monthly and intends to keep the credit balance under control and at minimum level where possible.
The unallocated credit balance as at 31st December 2019 of $7.75M is going to offset the debtors balance as at 31 December 2019 of $34.2M and is a matter of timing only.

Finally, while the ideal situation is to have zero credit balance on a monthly and annual basis, however, this is 3 unrealistic and impractical, in view of EFL’s larger customer base of around 170,000 who pay their electricity bills daily on monthly basis.

SUSTAINABLE DEVELOPMENT GOALS 4.

SDG Target No.


7.1 by 2030 ensures universal access to affordable, reliable and modern energy services.

What is the proportion of Fiji’s Population have access to electricity (What are the various sources of electricity)?

Please provide the desegregated data by sex (customers) and persons living with disability The estimated number of Fiji’s Population having access to electricity is over 90% of the country’s population.
EFL has various sources of electricity as follows: Hydro, Thermal, Wind & IPP (Solar & Bio Mass).

The current billing system of EFL does not have the desegregated data by sex and persons living with disability.

5.
5.

The Fijian Government is driven by the establishment of a modern and inclusive Fijian Constitution, along with an unprecedented programme of administrative reforms across Government; substantial and consistent public investment in infrastructure, public utilities, education, health and social inclusion; and a concerted effort to position Fiji as the hub of economic activity and regional engagement in the Pacific.
The National Development Plan portrays an inclusive socioeconomic development and the strategies within are ultimately designed to empower every Fijian and widen the reach of programmes, services and networks of infrastructure to transform Fiji for every Fijian.

At the evaluation stage of the construction implementation, is there a gender impact analysis carried out following the conclusion of the project?

How effective was the resource allocated in meeting the needs of both women and men?
Is there an understanding of the gender patterns and their impact of achieving the overall goals?

EFL is an equal opportunity employer.

6.
Please advise how is EFL contributing towards achieving SDG 7.3 (a) and (b) (a) By 2030, enhance international cooperation to facilitate access to clean energy research and technology, including renewable energy, energy efficiency and advanced fossil-fuel technology, and promote investment in energy infrastructure and clean energy technology; and (b) By 2030, expand infrastructure and update technology for supplying modern and sustainable energy services for all in developing countries, in particular least developed countries, Small Island Developing States and landlocked developing countries, in accordance with their respective programmes of support.
EFL has its 10 year Power Development Plan (PDP) and reviews this every 2 years.

The ten (10) year power development plan contains the load forecasting and power generation planning scenarios up to 2026 for Viti Levu, Vanua Levu, Ovalau and Taveuni Power Systems with associated network assets to be augmented/developed and the investment plan required to implement this 10 year Power Development Plan.
It is estimated that the total funding to execute the 10 Year Power Development Plan will require an investment of around FJ$2.4B Development of Power Generation Projects - F$1.6B Transmission & Distribution Power Network - F$0.8B 4 EFL expects the private sector to invest in the Power Generation Sector as Joint Venture (JV) Partners, Independent Power Producers (IPP) or on a Private Public Partnership (PPP) basis.

Ongoing discussions with prospective IPPs to develop various Renewable Energy technologies.
i.e.

Biomass/Waste to Energy Projects, Solar Projects & Hydro Projects.
Operational Renewable Energy Plants A. Hydro  Monasavu Hydro Scheme has a capacity of 72MW and is capable of generating around 400M units of electricity per annum on an average  Nadarivatu Hydro Scheme has a capacity of 40MW and is capable of generating around 100M units of electricity per annum  Wainikasou Hydro Scheme has a capacity of 6MW and is capable of generating around 22M units of electricity per annum  Nagado Hydro Scheme has a capacity if 2.8MW and is capable of generating around 8M unit of electricity per annum  Wainiqeu Hydro Scheme has a capacity of 0.7MW and is capable of generating around 1.5M units of electricity per annum  Taveuni Hydro Scheme has a capacity of 0.7MW and is capable of generating around 2M units of electricity per annum B. Biomass  TWIL supplies up to 6MW of capacity and supplied 28.7M units of electricity in 2019  FSC supplies energy to the EFL grid during the crushing season from their Lautoka & Labasa Sugar Mills  Nabou Green Energy Limited has a 10MW plant and started feeding into the EFL grid since July, 2017 C. Solar  surplus energy from solar roof-top installations are currently fed into the EFL grid at an agreed upon price between EFL & the individual customers and the number keeps increasing – presently 166 customers  Prospective Renewable Energy Projects – Viti Levu EFL has plans to develop the following renewable energy schemes: 5  Biomass – Waste to Energy Plant by utilizing municipal waste – via JV, IPP or PPP model  Solar – 3 x 5MW (without batteries) – via JV, IPP or PPP model in North Western Viti Levu (Sigatoka to Rakiraki corridor)  Hydro – Upper Wailoa/Qaliwana Diversion Project & the Lower Ba Project.
o Presently European Investment Bank is carrying out full feasibility studies for the first project.

The final feasibility report will be completed by end of 2020. o Furthermore, the intention is to carry out full feasibility studies for the Lower Ba Project as well on completion of the above.

 Hydro – Namosi Hydro Project o 3 Hydros in Namosi with a total capacity of 32MW and anticipated total energy output of 120M units/annum.
Feasibilities completed, EIA obtained & land has been acquired by EFL for this Project.
 Prospective Renewable Energy Projects – Vanua Levu  There are two independent power systems in Vanua Levu – Labasa & Savusavu  EFL had called for Expressions of Interest for the Development of Grid Connected Renewable Energy Projects in Vanua Levu, covering both Labasa & Savusavu Power Systems – Opportunities for either JV, IPPs or PPP  There is also an opportunity for the establishment of an independent mini grid in the township of Nabouwalu.
 Prospective Renewable Energy Projects – Ovalau  The entire island of Ovalau is electrified with 100% fossil fuel generation.

 The present peak demand in Ovalau is 1.6MW  The largest customer in Ovalau is PAFCO with a peak demand of 1.2MW  Study has been undertaken for a Solar Hybrid Plant by a Korean Company  EFL will be calling for expressions of interests soon in this regard.

 Prospective Renewable Energy Projects – Taveuni  EFL entered the island of Taveuni in December, 2017.
 Presently only 30% of the island is electrified.

 The remaining 70% will be electrified over the next 2 years.

 The present demand on the island is 340kW and it is anticipated that the demand will increase to 2.4MW once the entire island is electrified by extending the grid.
 The present power generation is as follows:  Somosomo Mini Hydro – 700kW  Waiyevo Diesel Plant – 2 x 1MW The Mini Hydro Scheme is able to cater for the present demand of 340kW practically  throughout the year  Through grant-in-aid, KOICA is in the process of developing a 1MW Solar PV Plant with 400kWh battery capacity to be connected to the grid.

This project is anticipated to be completed by December 2020.

 1.5MW to 2MW based on the demand growth as the grid is extended over the next 2 years.
The prospect for further development is to establish renewable energy schemes of around 6