Did you know that a Bow-tie Analysis is used in risk management to visually depict the causes of a risk event and the consequences of it on a business? That’s not all! A Bow-tie Analysis even allows you to visualise how controls are used to manage a risk event.
Through this blog, we’ll be exploring the importance of a Bow-tie Analysis for risk management and how you can leverage Camms.Risk to develop one!
There can be multiple causes and multiple consequences linked to a risk event, with each having varying degrees of effectiveness. Controls for causes are typically ‘preventative’ and controls for consequences are typically ‘corrective’. There is another group of controls called ‘detective’ which are typically used for rapid detection and response in relation to a risk event; for example: a smoke detector.
Depicted below is an example of a potential risk event, as well as the causes, consequences and controls linked to it. The risk event in the example is the loss of key personnel, which can have a negative impact on an organisation.
The primary causes that lead to this specific risk event are shown on the left, while the consequences of the event on the business are shown on the right. Examples of preventative controls and corrective controls are aligned with the relevant cause or consequence.
Highlighted below are the key functions that can be executed under Camms.Risk’s Operational Risk Register.
With Camms.Risk you can easily inspect a risk event with the respective causes, consequences and controls.
The next step in the process is to generate a Bow-tie Report for the risk event using the reporting function within Camms.Risk. Once you have made the necessary selections, you will be presented with a preview report similar to the one shown below. You can export the detailed report in the required format as well.
Well, it’s as simple as that! As a Camms.College customer you can get instant access to our on-demand webinar where the Camms Head of Service, Lachlan Collins and Product Consultant, Shaun Mahon gives you a step-by-step walkthrough of how to do a Bow-tie Analysis within Camms.Risk.