JSE_V1_N3_A2 D. Jayasri P. Murugeswari S. Vijayalakshmi B. Meenakshi Sundaram Journal on Software Engineering 2230 – 7168 1 3 17 23 Knowledge management, Ontology, Psycho analysis, Spiral model, Probabilistic ontology, Systems thinking Ontology development is widely used for Domain specific Intelligence and Knowledge Management Techniques. A procedural approach is highly needed to model Ontology, since it is an important step in the development of knowledge based systems. At present the construction of Ontologies is very much an art rather than a science. The state needs to be changed, and will be changed only through an understanding of how to go about constructing Ontologies. Thereby in this paper a Nonlinear Spiral model has been suggested for Ontology design. The proposed approach is the combination of Software Engineering methodology tools with Psychoanalytic Probabilistic Conceptual Specialization. The central significant of this approach may help us to re-think to use Ontology for resolving many Risk Analysis Problems in semantic systems thinking. January - March 2007 Copyright © 2007 i-manager publications. All rights reserved. i-manager Publications http://www.imanagerpublications.com/Article.aspx?ArticleId=708