A system and method for controlling a compressor recirculation valve involves establishing a compressor surge flow threshold expressed in terms of a compressor corrected volume air flow rate. A torque-based engine management system computes a desired mass air flow rate in accordance with a torque request and other operating/predetermined data. The desired mass air flow rate is converted into a desired, corrected volume air flow rate, which is then compared to the compressor surge flow threshold. The controller is configured to open the valve when the desired corrected volume air flow rate is less than the compressor surge flow threshold. A hysteresis function is implemented by providing a surge flow hysteresis threshold that is offset from and greater than the initial compressor surge flow threshold. The controller is configured to close the recirculation valve when the desired corrected volume air flow rate becomes greater than the surge flow hysteresis threshold.