“As of November 23, 2006 States shall require, as part of their safety programme, that an [operator, maintenance organization, ATS provider, certified aerodrome] implements a safety management system (SMS) accepted by the State that, as a minimum:
- Identifies safety hazards.
- Ensures that remedial action necessary to maintain an acceptable level of safety is implemented.
- Provides for continuous monitoring and regular assessment of the safety level achieved.
- Aims to make continuous improvement to the overall level of safety.”

On June 22, 2006, AC 120-92 was published establishing the guidelines for the use of safety management systems (SMS) in the aviation industry. This AC is non-regulatory in nature and intended to provide guidance to aviation industry participants (air carrier certificate holders, program managers, operators, repair stations, etc.) in the development and/or use of an SMS.

At the core of the IS-BAO is a company Safety Management System (SMS). The IS-BAO requires that flight departments implement an SMS. The goal of the SMS is to manage safety risks effectively.
Guidelines have been developed to assist business aircraft operators to:
- identify the hazards and categorize the risks related to their operations,
- develop and document mitigations,
- track and measure the results of their activities.



Many of the largest energy and resources companies are requiring that thier contract aviation