Rob Kella - Chief Risk Officer

1. The Simplicity of Aviation Safety Management Putting Practical Ideas Into Practice - Airline Risk ManagementBringing Risk and Assurance Together Rob Kella - Chief Risk Officer

2. The Group - “Sum of the Parts” Qantas Engineering People Qantas Airlines Jetstar Services (Airports and Catering) Finance & Strategy Loyalty Qantas Freight Enterprises Risk and Assurance

3. Board of Directors Board Audit Committee Board Safety, Environment and Security Committee “Scope to Reach Across the Group” Safety and Risk Leadership Committee (Exco) Financial Strategic Risk Review Group Safety and Environment Mgmt Committee Risk and Assurance Executive General Manager Segment Risk and Assurance Personnel Segment Risk/Safety Committees Ongoing Management of Safety and Risks Segment Operations Group Governance andRisk Management Model

4. Risk and Assurance Chief Risk Officer Aviation Medical Services Occupational Health and Safety Safety Environment and Fuel Conservation Risk Internal Audit Security • Aviation and occupational medical services • Medical advice (employees and passengers) • Occupational safety compliance and risk mgmt • People safety improvement program • Aviation safety compliance and risk management • Oversight of Group aviation safety standards • Environmental compliance and risk management • Environmental improvement programs (inclusive of fuel and non-fuel initiatives) • Risk management advice, consulting and reporting • Risk and assurance improvement program • Internal compliance and control • Corporate governance • Security compliance and risk mgmt • Group security services • Business resilience Established in March 2006 Logical synergies across Risk and Assurance

5. Why? • Increasing complexity of external risk environment • Continuous pressure to change - related impact on the risks of doing business • Management demand for more timely risk information • Increasing/changing demands from regulators; further compliance requirements • Re-alignment of governance models within Group • Leveraging safety and risk management expertise across Group

6. Objectives and Supporting Activities Improve visibility and awareness of risk Sponsor/manage risk and assurance improvement initiatives across business through: Oversighting operations Supporting Segments in complying with regulations and managing regulatory relationships Providing timely risk analysis/reporting/advisory and assurance services

7. Supporting Safety Management - Flight Ops Board Safety Committee Risk and Assurance Representation Qantas Airlines Safety Committee Management Safety Review Committee (Flight Operations) Escalate Risks & Trends Type Committees (Each Fleet) Common Information Source (AQD) Case Study 1

8. Measuring Safety Management Performance Process Output Outcome Input Measure overall riskiness of operating environment Measure quality and effectiveness of safety management systems Measure safety activity Measure safety outcomes Case Study 1

9. Measuring Safety Management Performance Case Study 1

10. Ongoing Transformation Challenge From Decision Support Percentage Effort To Protect/Create Value Value for Money 50 Fieldwork and Reporting 50 2008/09 2005/06 Case Study 2

11. Current Improvement Initiatives • Align/re-engineer R&A activities (risk assessments, investigations, audits, etc) • Work with Segments to re-align/re-engineer their related activities • Roll out information system strategy • Further redesign advisory services by leveraging risk information • Utilise integrated risk information to work with regulators (increase awareness of risk management system); minimise potential for unnecessary regulation Case Study 2

12. Business Behaviours, Business Processes and Infrastructure Data Capture Escalation Management Review Level of Detail Monitoring and Analysis KRI Scorecard (Lead/Lag) Where? Integrated Management System (Control Framework) Why? Review Processes Integrated Management System - Overall Design Business Performance Incidents Risk Assessments Policy/ Regulations Investigations Audits Case Study 2

13. Management review embedded in AOCs Safety performance indicators developed Mature safety information systems (eg, AQD) Safety systems audit and safety investigation methodology and skills Embedded operational risk assessment process Expand scope to other operational areas across Group Migrate to a broader risk control framework Expand to provide interim/prototype solutions (eg, action tracking) Develop common audit and investigation models Integrate with a broader, common risk assessment model Leveraging SMS Successes Established SMS Process Elements IMS Process Elements Case Study 2

14. Ongoing Success Factors Continued support/advocacy from the top Organisational positioning Culture that empowers safety and risk ownership • Organisation that embraces change • Culture that empowers sharing Structured/disciplined processes