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Strategic RISK
BOW-TIE
ANELEGANT
SOLUTION?
Steve Lewis and Sheryl Hurst explain how to get the most out of the
increasingly popular bow-tie risk management method
R
isk assessment lies at the heart of the
FIG 1 THE BOW-TIE joint IRM, AIRMIC and ALARM risk
management standard. And one of the
most powerful and increasingly popu-
lar risk assessment techniques is the
bow-tie method, so called because it describes the
management of risk in the shape of a bow-tie.
This method goes beyond the usual risk assess-
ASSESSMENT TECHNIQUES
History
The bow-tie method provides a readily-understood FIG 2 BUILDING THE BOW-TIE
visualisation of the relationships between the
causes of business upsets, the escalation of such
1 What are our risks? RISK
events, the controls preventing the event from
occurring and the preparedness measures in place THREAT 1 CONSEQUENCE 1
2 What happens
to limit the business impact (Fig 1). More impor- when we lose
tantly, the preventive and mitigating measures are control of the risk?
THREAT 2 BUSINESS CONSEQUENCE 2
linked to tasks, procedures, responsible individuals UPSET
and competencies. This highlights the crucial con-
nection between risk controls (whether hardware, THREAT 3 CONSEQUENCE 3
procedural or competence based) and the manage-
ment system necessary for assuring their ongoing
3 What could cause us to lose control? 4 How can the event develop?
effectiveness. What are the worst outcomes?
Bow-ties originated as a method for assessing
hazards and operational risks, although the exact THREAT CONSEQUENCE
5 How do we 1 RISK 1
origins of the methodology are a little hazy. The Threat Threat Recovery
Preparedness
Recovery
Preparedness
prevent the risk Barrier Barrier Measure Measure
earliest mention appears to be in an Imperial from occurring?
THREAT CONSEQUENCE
Chemical Industries training course from 1979. How do we keep 2
Threat Threat Recovery Recovery 2
control? Barrier Barrier Preparedness Preparedness
Undoubtedly, the Royal Dutch/Shell Group was the EVENT Measure Measure
THREAT CONSEQUENCE
first major company to fully integrate the bow-tie 3
Threat Threat Recovery Recovery 3
6 How do we Preparedness Preparedness
method into its business practices and is credited recover if the
Barrier Barrier Measure Measure
with developing the technique which is widely used event occurs? ESCALATION ESCALATION
FACTOR FACTOR
How do we limit Escalation Escalation
today. The primary motivation was to seek assur- the severity of Factor Control Factor Control
ASSESSMENT TECHNIQUES