A proactive approach is thus proposed to risk management. Instead of a strategy based on attempts to remove causes of human error, an attempt is made to design a strategy based on: – An identification of the boundaries of safe performance, efforts to make these boundaries visible to decision makers and – Efforts to counteract pressures that drive decision-makers toward the boundaries. Since most serious accidents have been caused by operation of hazardous system outside the design envelope, the basic problem in design of improved risk management strategies is to ensure an improved interaction among the decision making and planning strategies at the various levels shown in ﬁgure. However, a scheme for improved interaction cannot be created by integration of research results from the various disciplines studying the individual levels ,due to the basic differences in conceptual reference frames, research paradigms, and language of representation. In consequence, results from present academic research must be reinterpreted and often supplemented by analysis based on a model suited to capture the function of the entire system aiming at proper control of the normal as well as disturbed operation of the potentially hazardous processes of a particular company. Considering the dynamic nature of a modern society with companies and institutions constantly striving to adapt to a dynamic environment, the usual approach to modeling the system by decomposing it into elements and describing its function by causal interaction among these elements is not reliable. Causal explanations cannot be used for systems that include closed loop interactions and adaptive changes. Instead, models in terms of functional abstraction are required, describing the information flow structure within the entire system involved in the control of the hazardous processes. This approach can be used to design and analyze reliably a system, even when its functional elements are subject to unpredictable changes. There is a basic difference between the requirements to design and analysis of; – systems controlled by pre-planned strategies and prescriptive procedures and – systems controlled by closed-loop feedback strategies.