This applies to all levels of the organization. The principle behind this is that every person within the organization has a role in promoting safety. The organization's role when implementing this system is therefore to examine the way in which its operations and decision-making processes interact. The results of this examination should be used to improve the actions that are taken to prevent malfunction or accidents. Another component of the organization's function is to use employee reports and data to improve the prediction methods for potential hazards. This information will then be used to analyze risks, as well as for the assessment and control of potential hazardous situations.

When implementing SMS, the system will also function to help aviation organizations to comply with existing regulations. The need for future action in this regard will be predicted by a knowledge and information sharing function.

The SMS then works with the organizational...

The main focus is on changing the safety attitudes towards prediction rather than reaction to hazards and disasters that have already occurred. In other words, it is a proactive implementation of safety measures that can enhance the already highly developed safety systems that have come into effect over the years.
Safety Management Systems have become increasingly popular among aviation organizations, as the benefits of proactive, predictive thinking rather than reactive risk management has become apparent with its implementation. Furthermore, the management of risk has become a much more thorough process by requiring all employees rather than only management or risk professionals to take responsibility for safety.

Source

Federal Aviation Administration. (2012). Safety Management System. Retrieved from: http://www.faa.gov/about/initiatives/sms/explained/