What is a Bow Tie Diagram?
A Bow Tie Diagram is a powerful visualization tool used in Enterprise Risk Management (ERM) to map the structure of a risk, its causes, consequences, and the mitigations in place. It gets its name from the shape of the diagram, with the central Risk Event in the middle, Root Causes on the left, and Consequences on the right.
This format helps stakeholders better understand the context of a risk, and identify where pre- and post-event mitigations can be applied.
Bow Tie Sections Explained
Risk Event (Center):
The specific event or scenario you’re concerned may happen, described clearly for all users.
Root Causes (Left):
Factors that could lead to the risk event occurring (e.g., lack of funding processes, outdated IT systems).
Consequences (Right):
The potential negative impacts if the risk event were to happen (e.g., disruption in city services, infrastructure decay).
Pre-Event Mitigations:
Actions currently in place to prevent the risk from occurring. These address the root causes.
Post-Event Mitigations:
Actions taken after the risk event occurs to reduce impact or restore operations.
Best Practices for Using Bow Tie Diagrams
Only include mitigations that are actually implemented, not ideas or planned activities.
Use a parallel action tracking sheet to log ideas and next steps as they arise from the bow tie analysis.
Consider involving subject matter experts in a workshop format to collaboratively brainstorm and complete the diagram.
Start from root causes to inform realistic and effective mitigation strategies.
💡 Bow Tie diagrams originated in hazard management and are now widely used in ERM because they make it easier to engage business audiences and link technical risk details with strategic decisions.
Why Use Essential ERM for Bow Ties?
While bow ties can be made manually in tools like Word, PowerPoint, or Excel, it’s much easier and more scalable to build them in Essential ERM. Within the platform:
You can add Root Causes, Consequences, and Mitigations using dropdowns or custom entries.
Risk data is linked dynamically to other system components (e.g., Action Plans, Risk Appetite).
The diagram resizes and aligns automatically, reducing formatting work.
The tool supports structured brainstorming and helps surface clear next steps.
Example Use Case
A City Manager working in Essential ERM identifies a high-priority risk:
Inability to diversify funding sources and maintain sufficient revenue for city services.
Staff completed an inherent and residual risk assessment. The residual risk remains above acceptable thresholds.
Using the Bow Tie Diagram, they:
Identify root causes such as lacking processes and IT systems
Realize these causes are not yet mitigated
Trigger the creation of an action plan (e.g., feasibility study for IT improvements)
The result is a more detailed understanding of the risk and an action-driven mitigation plan.
Get Help or Try It Yourself
If you're new to bow ties or facing challenges, Tracker Networks offers:
Free trials of Essential ERM with bow tie functionality
One-on-one support with risk advisors to guide setup or workshops
Just reach out through your Tracker contact or support channels.