Application of Bow-Tie Analysis in Risk Management

This article is intended to link BowTie Analysis to Risk Management. Linking of operational risk to Bow-Tie diagrams provides an organization with greater visibility and understanding. Experience show that Bow-Tie is ideal for structured assessment and communication of risks, clearly demonstrates the link between control measures and management system arrangements and can be used to quantitatively assess and demonstrate control of all types of risk. Use of Bow-Tie analysis enables companies to streamline their risk management documentation, as the amount of information which can be included on a single Bow-Tie diagram would require several pages if presented in text or tabular format. Tips for success while using Bow-Tie analysis is to involve people from different levels in development, making sure that control responsibilities don’t finish up at manager level, verifying control measures and tasks. Thus, the method helps to ensure that risks are managed rather than just analyzed.