Question

Examine risk mitigation strategies with relation to bow-tie risk analysis. Give an example

Answer 1

Risk Analysis
Risk analysis is the process to identify the issues and problems that can directly or indirectly impact the operations or financial structure of the organization and also help to find out the best possible method of overcoming through this issue in order to ensure that the organization is on the right path of achieving its organizational goals.

Risk Mitigation Strategies
This is the strategies through which the individual or the organization can develop and innovate new ways to overcome through the issue which can potentially reduce the organizational capability. In a simple we can simply understand that the methods of finding different ways of dealing with the risks are known as the Risk Mitigation Strategies.

For Example: There is a manufacturing organization which has a manufacturing plant situated in the village and there is a situation that the factory is not fulfilling the requirement of the organization with the ample amount of manufactured product to sell. They found that the main reason behind the poor productivity of the plant is that the employees are not well trained so in order to avoid losing its customer the organization will either train the employees or the factory will shutdown from that village in order to avoid any further loses of time, money and resources.

Bow Tie Risk Analysis
Bow tie risk analysis method is a method in which we come across identifying causes of risk on the left side and risk on the center and consequences on the right side. This method help us to identify the ways of preventing causes turning into a risk and consequences and also help to reduce the impact of the consequences by applying preventive methods on the correct time.

For Example: There is an internet providing service organization and its main job is to provide uninterrupted high speed internet service to its customer and one major risk is power failure in their area of main grid and to avoid the risk of interrupted internet service they decided to install a power generator to avoid the risk of internet service failure.

Conclusion
From the above two scenarios we can say that both the methods have one common goal of avoiding the risks to damage the operational structure of the organization. But first method is to find different methods to overcome risk as the other method is stop the cause of the risk to convert the risk into harmful consequences.