Episode transcript The transcript is generated automatically by Podscribe.
Ricardo (4s): Hello, everyone. Welcome to the five minutes podcast today. I like to talk about the Bowtie Method to Evaluate Risks and of course the name Bowtie it's because it's the shape of a bow tie. So the basis of the bowtie Method is a visual way for you to assess and respond to two major hazards in your project environment. So let me start by the center of the bow tie. So the center where the not is it the event, the event is when you lose control over a hazard. Okay. So you have a hazard, something that you are concerned about and then when you lose control of that hazard, you have the event.
Ricardo (49s): Basically the event is in the center between two sides on the left one, the treads that originated at the event, and on the right side, the consequences. So let me try to give you an example. Most of the examples you will find on the web are events related to security, two accidents. So I tried to create an example that is not like that exactly. To open your mind on the users of the bowtie method. So let's suppose you have a heart in the hazard is your credit card database. So this database contains all the credit card information of all your clients and the event, the Centre of the bow tie East when you lose control of the database.
Ricardo (1m 39s): So something happens and you lose control of the database. So basically you have some triggers are some reasons for you to lose control. So let me give you some examples. You may lose control because a failure on the database server, you can lose control because of a leak of the password or access credential, you can lose control because of sabotage and you can lose control because of the lack of knowledge of who is operating the database. So all these strats can make you lose the control of your database. And then on the other size on the right side of the bowtie, you have the consequences.
Ricardo (2m 22s): Okay, what happens if I lose control of the credit card database? So I can have data being Hackett. I may have clients being mischarged I can lose data, transaction data, client data, right? So this is an absolutely very, very simple example. So imagine this in a visual, so imagine the central post it with loss control of the credit card database. And then on the left side, you have, I would say the four or five or 10 threats that could generate that loss. And then on the right site, you have the consequences of this loss.
Ricardo (3m 3s): So basically you have a map of that hazard and that event. So what do you do now? You need to plan the responses and the concept of the responses using the bowtie method is by using barriers or barricades. So how I can block threats to happen in the How I can block consequences to happen so I can put barriers on the left and on the right side. So let's suppose lack of knowledge, generating loss of control of the database. So I can put a barrier there. I can put increase training for new employees, working with the database.
Ricardo (3m 49s): I can put another barrier I can put in the first six months of work. The passcode of the new employees' will have to be rechecked and all operations by a more senior staff. So what I'm doing, I'm putting barriers, each barrier will have a cost, will have an effort to be in place. And then on the consequence side, I can do the same. For example, let's suppose that consequence loss of data. I can put the, a barrier there, say. I will backup the credit card database in another server, in another facility. And by doing that I will block the loss of data to happen.
Ricardo (4m 33s): So basically what do you do? So you basically create this map with the center based on the event, the left with all the threats and the right, with all the consequences. And then you need to find ways of putting barriers and Block that event to happen. And this is the full concept of the bowtie Method of course we do not use these methods for every single risk. You should use this method only for relevant risk events, relevant events that could threat the life of people, threats the environment, or threat the existence of the organization.
Ricardo (5m 15s): So you don't do that with every single risk because otherwise you to take a lot of effort to do that, but do you do that with all the major ones and it's an excellent group tool. So it's an excellent for you to discuss with other people. It's very common and very used. It was created in the oil sector. Okay. I learned about that in the oil sector as a chemical engineer, but right now we can use this, kind of visual to, in a very simple way, for many others. Risks like, for example, this, I tried to create from the top of my mind an example that is not related to an accident or something like that.
Ricardo (5m 57s): So this is why I created this on the credit card database. But if you go on the web, you will find so many examples of hazards related. For example, to accidents, to explosions For example. I can use that. I have a storage of an explosive. Then I have a problem. For example, the get ignition of that explosive. What could generate that ignition of the explosive, a heat, temperature, sabotage, terrorists, whatever. And what is the consequence of that fire or explosion, a major explosion, a loss of control, the financial damage did you get?
Ricardo (6m 37s): So you have this on both sides. I didn't want to use this example because this example is on the web and you can find some excellent examples of that. There is one example of a loss of control on the car. And it's an excellent way to understand how you can put barriers on that, how you can avoid some consequences of that. So it's a very, very important, for example, let's suppose you have an event that for example, you have something that could put you in risk on the health site, and then you may trigger, for example, some disease. And then as a consequence, your family can, for example, suffer with your absence financially, then you can put a barrier making any insurance, but this were rear will solve only the problem of your family.
Ricardo (7m 27s): Not having money to survive. It will not resurrect you. So did you get that? so this is why it's so important to use these kinds of techniques to understand how effective each barrier is to each different. Risks I hope you enjoy this podcast and see you next week with another five minutes Podcast.