The Enterprise Risks of Using Commercial Drones

In this article we explore the use of drones in hazardous industries, and highlight the associated risks that apply to organisations.

Since their arrival drones have made a significant impact on the world of work. Drones are mainly digital data collection devices, but it is their mobility and range that separate them from traditional alternatives. The increasing sales of drones indicate that this technology has serious commercial value and will be a regular feature of the 21st century workplace.

we explore the use of drones in hazardous industries, and highlight the associated risks that apply to organisations

Commercial level drones

Drones may refer to ground or sea vehicles that operate autonomously, however this article exclusively talks about aerial drones. It is also important at this point to distinguish commercial drones from recreational drones, and the types of drones that fall in between.

Recreational-level drones usually cost between $200-$1000 and are typically off-the-shelf products. These are closer to toys and gadgets and may lack key safety features such as strong transmission signals, satellite positioning, stabilisation technology, return-to-home features, and obstacle avoidance features. Consumer drones are typically smaller in size and their payload is usually a camera which is nearly always inbuilt as opposed to swappable. Operators using recreational-level drones may have difficulty registering such equipment for commercial purposes. An example of a recreational drone that, while very capable, would not satisfy commercial requirements is the DJI Spark Series.

In between there are also consumer drones on the market known as “prosumer” drones. These are engineered to a high standard and are fitted with solid payloads and effective safety features. Whilst these may be off-the-shelf products priced towards the consumer they are capable of carrying out commercial tasks such as inspections and surveillance to very good standard. Within the DJI range of products these would include the newly released DJI Mavic Air 2 and the DJI Phantom 4 Pro V2.0

Commercial-level drone technology is more complex, expensive, and task-specific compared to consumer drones. The majority of commercial drones are quadcopter’s but they can also take the form of dualcopters, hexacopter’s, tricopters, septacopters, octocopters, and fixed wing units. Commercial drones also vary in weight, size, range, and payload depending on the task and its complexity. These factors usually dictate the cost of the drone along with the level of insurance and pilot training required. The most conspicuous difference for the layperson is the size of the drone and its capacity to lift heavy payloads. These payloads include cinematic quality cameras (5K and 6K quality), zoom inspection cameras, chemical sniffers, LIDAR equipment, thermal imaging equipment, and bespoke devices. An example of a typical commercial level drone setup would be a Zenmuse X7 camera mounted on a DJI Inspire 2.

It is incumbent on each organisation that the drone equipment and personnel they use in the course of their business are at a commercial level, are suitable for the task at hand, and fulfil the relevant statutory requirements for that jurisdiction

The use of unregistered drones or unlicensed pilots for commercial work can have legal consequences for the property owner and/or those benefiting from the work. It is incumbent on each organisation that the drone equipment and personnel they use in the course of their business are at a commercial level, are suitable for the task, and fulfil all local statutory requirements. In the majority of jurisdictions there are common legal requirements relating to the use of drones for professional and commercial applications. These include:

• Drone pilot licenses
• Registration of drone equipment
• Drone insurances (equipment and public liability)
• Commercial drone operation permits (various levels)
• Occupational health & safety requirements

Benefits of drones

Drones have the capacity to cause public annoyance however the economic benefits of drone applications are far reaching. From an enterprise perspective drones are also disruptive in that they can completely replace manned work in hazardous locations, and in hazardous circumstances. An example is the use of drones for inspecting utility assets such as pipelines. Keeping pilots and inspection personnel on terra firma has resulted in significant risk and cost reductions. It has also proven damaging for commercial aviation operators traditionally servicing these sectors.

The data collected by drones provides asset owners with newfound insights into their equipment, sites, and buildings. These insights can be retrieved at speed and provide greater accuracy compared to traditional methods of inspection and monitoring. The costs of height equipment such as scaffolding, boom lifts, and ladder access can be significantly reduced when substituted with drone inspection. These cost-savings and safety gains can be massive for organisations operating in high risk sectors. This makes drones an important addition to the toolbox of those managing operations and maintenance.

Some of the industrial applications of drones include:

• Delivery of blood and medicines
• Police operations monitoring e.g. accidents, riots, incidents
• Search and rescue e.g. remote areas, lifeguarding
• Utility inspection e.g. pipelines, power transmission, telecoms
• Monitoring crops and forestry
• Biological monitoring e.g. poaching, conservation
• Crop spraying
• Fire fighting e.g. oversight of wild fires, identification of hotspots
• Photogrammetric 2D and 3D surveys
• Surveys for geomatics
• Thermographic surveys
• Chemical leak sniffing
• Traffic monitoring
• Security monitoring
• Confined space inspection e.g. tanks, vessels, tunnels
• Commercial aerial filming and photography
• Asset inspection e.g. building roofs, spires, wind turbines, solar panels

Enterprise risk

Drones have received plenty of negative publicity since their introduction and this is mostly down to misuse. There are both legal obligations and liability concerns for organisations relating to drone-use. These risks are no different to the risks posed by any other pieces of work equipment in that they can result in harm, loss, and may pose a risk to business continuity. The enterprise risks associated with drone-use include:

• Damage to property e.g. fire, striking assets
• Injury to persons e.g. striking spectators or workers
• Disruption e.g. travel, public events, operations
• Industrial espionage e.g. spying by competitors
• Antisocial behaviour e.g. provocation and intimidation
• Intentional panic e.g. use as a protest or threat
• Unwanted publicity e.g. negative public perception

In most instances people and organisations are most concerned with privacy issues. Unsolicited photography and filming are a particular issue. Property owners do not technically own the airspace above their premises and have no rights in this regard. This has created a grey area when imposing privacy laws on drone users.

The misuse of drones is commonly associated with recreational users, pranksters, activists, and in some cases terrorists

The misuse of drones is commonly associated with recreational users, pranksters, activists, and in some cases terrorists. And whilst these types of activities are outside the realm of commercial enterprise they do have the capacity to infringe on business in a significant way. Take the case of Gatwick airport (UK) between the 19th and 21st of December 2018. Several hundred domestic and international flights were cancelled due to reports of drone sightings close to the runway. Nobody was ever arrested for flying a drone but the reported sightings caused major disruption to international business with 1000’s of flights grounded and over 140,000 passengers affected.

In another case, drones were regularly observed flying over nuclear power facilities in the south of France in 2014. Whilst the drones did not compromise safety onsite it did lead to an extensive ongoing investigation driven by fears that the nuclear sites were unsafe from airborne attack. As with Gatwick this incident awakened the corporate world to the enterprise risks posed by drones.

Who regulates commercial drone use?

Drone regulations can be difficult to interpret as there is an overlap of various public interests and corresponding legislation. These areas include civil airspace, privacy, security, public safety, and occupational health & safety. In nearly all countries drone operation is regulated by the local civil aviation authority e.g. IAA in Ireland, CAA in the UK, FAA in the US, TCCA in Canada, CASA in Australia. These national aviation authorities ensure adherence to legislation, rules and permissions regarding non-military flying equipment. This may involve drone registration, licensing of drone pilots, privacy awareness testing, and issuance of commercial operating licenses. These authorities typically provide public information pertaining to the use of commercial and recreational drones.

EU legislation

Drone laws in EU states were recently superseded by drone legislation introduced by the European Commission (EC). This legislation replaces existing requirements in European member states and sets out a common rules for both commercial and recreational drones. It has provided much needed clarity for both the business sector and for drone manufacturers in Europe. The new rules and procedures have also legislated for future drone developments such as fully autonomous drones, and passenger drones. Some of the measures introduced with the EU drone legislation includes:

• New standardised definitions of “specific categories” of drones
• All drone users are required to register with their national aviation authority as of 2020
• Drones weighing less than 25kg will be able to be flown without prior permission and within certain conditions
• All drones operators must keep drones within visual line of sight (VLOS)
• Drones must not exceed an altitude ceiling of 120 metres
• Observance of new specified safe distances from persons, crowds and property
• Specific operation permit holders are required to perform a risk appraisal exercise according to the specific operations risk assessment (SORA)
• The EU will, in future, be able to define “no-fly zones” common to member states

Enforcement

In most jurisdictions the aviation authorities are reliant on the local policing authority to apprehend the pilots of dangerously operated drones

Since drones are too small to show up on aviation radar, unmanned aviation laws are difficult to enforce. In most jurisdictions the aviation authorities are reliant on the local policing authority to apprehend the pilots of dangerously operated drones. If the police can locate the pilot they may demand compliance documentation and relevant permits relating to the flight. The drone pilot or their employer may then be prosecuted under the legislation they are found in breach of. It is worth noting that drones can be operated in a way that can constitute nuisance or criminality, but still be in compliance with local aviation laws. It is for this reason that the local police typically take the first line of action where drone misuse is concerned.

Depending on the jurisdiction air incidents or accidents relating to drone-use are investigated by the air accident investigative wing of the local civil aviation authority such as the AAIB in the UK, or the NTSB in the US.

Health and safety interest

Whilst the various occupational health and safety authorities have no powers to dictate how drones are to be flown they do have strong powers to ensure that workplaces are safe. What this means is that workplace health & safety departments will have oversight and jurisdiction over all ground activities on their property. They do not however have authority during the actual flight activities. Drones in flight are the jurisdiction of the aviation authorities the same way helicopters and light aircraft are. Relevant safety and risk managers can however involve themselves in flight planning and may involve themselves in the following work aspects:

• Access and egress to work areas
• Use of bollards, signage, and communication methods onsite
• Risk assessments, training certification, permits, equipment checks, and work safety plans
• Handling of powered-up drones e.g. catching fixed drones, rotating propellers
• Handling, charging, storage, and use of batteries or other fuel sources onsite
• Separation of drone flight paths and other workers
• Separation of drone flight paths and sensitive assets e.g. designated explosive zones
• Separation of drone flight paths and third parties i.e. traffic and pedestrian routes
• Liaising with neighbouring property owners pre-flight

Comment

Like any technology drones can pose a risk in the wrong hands. When sizing up risk it is important to differentiate the recreational drone users from the commercial drone users. Drone technology is a game-changer and the commercial benefits are increasing year-on-year with new developments and new applications. As the use of drones increases, business organisations should be mindful of their legal obligations and the risk areas that require management and contingencies. This may involve some or all of the following risk mitigation measures:

Actionable information

Note: Drone safety at work and the risks posed by drone activity is your responsibility. You should use the above information as general advice.

Further information

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