Application of systems thinking to risk management:: a review of the literature

Abstract

Systems thinking is holistic, that is it deals with wholes rather than parts and is relevant to tackling ill‐structured “messy” problems. Reviews the literature on risk to identify the techniques and concepts used in the management of risk and the identification of potential failures. The majority of the concepts identified are found to be systematic and reductionist. Also identifies related concepts not used in the techniques which are found to be more holistic. Classifies the concepts according to their use and holistic qualities. Briefly describes a systems approach to failures. As risk is associated with uncertainty and ill‐structured problems, suggests that systems thinking could be a valuable aid to risk management.

Citation

White, D. (1995), "Application of systems thinking to risk management:: a review of the literature", Management Decision, Vol. 33 No. 10, pp. 35-45. https://doi.org/10.1108/EUM0000000003918