The complexity of health care is increasing at an alarming rate. Medical malpractice risks, which are inherent elements of this complexity, threaten the survival of both physicians and hospitals. Technological advances, social concerns, legal ramifications, economic values, and political pressures all amplify risk for health care professionals. Federal government warnings to control health care costs compound the dilemma. System science provides a framework for identifying, analyzing, and ranking all types of risk so that they can be balanced against the more easily recognized benefits of health care. Rather than limiting the concept of risk management to the traditional concern for financial loss, this paper stresses a much broader scope of risk assessment and control. All medical activities that can lead to injury or death of any person, or damage to or loss of property, material, or reputation must be systematically managed regarding risk. A strong theoretical foundation is combined with the successful application of system science to managing risk at the Saint Joseph Medical Center in Burbank, California.