Summary
A bow-tie diagram is a representation of the initiating events that lead to a top level event, in addition to the consequences of that event. The top level event would relate to an undesirable outcome. The diagram may also indicate the barriers that are in place to reduce the likelihood of the top level event occurring. Bow-tie diagrams are Inherent within Hazard, Effect and Management Process (HEMP).
Example

Applies when
You are conducting risk analysis that focusses on prevention and recovery.
Advantages
Good for communication, especially for non specialists. Also informs incident investigation.
Disadvantages
Does not offer a novel way of analysing risk.
How
Identify and illustrate the top level event, causes of the top level event and consequences of the top level event. On one side of the top level event there is a fault tree, on the other an event tree.
Also consider using
ETA, FTA.
