They provide a readily understandable visualisation of the relationships between the causes of business upsets, the escalation of such events to a range of possible outcomes, the controls preventing the event from occurring and the preparedness measures in place to limit the consequences. More importantly, the preventive and mitigative measures are linked to tasks, procedures, responsible individuals and competencies, thereby demonstrating the crucial connection between risk controls and the management system for assuring their ongoing effectiveness.
This paper draws on Risktec’s unparalleled experience in applying the bow-tie methodology and is intended to be of interest to those who are new to the technique and experienced users alike. It summarises the history of the bow-tie method, gives an overview of how to apply it and describes in detail its practical uses and benefits as well as potential
pitfalls and guidelines for success.