Risk management doesn’t have a fixed position within an organisation's strategy. Although there is a strong desire to optimise and learn from risk management, as an independent unit that ensures effective monitoring of risks throughout an organisation, it’s often missing. As a core competency, however, it should be clearly visible within an organisation’s structure.
In the banking and insurance industry, risk managers maintain an independent position. Yet, with technical projects, this task typically falls to the project manager. Due to the multitude of other tasks they have to contend with, however, a project manager is often overwhelmed, particularly on large projects. Monitoring and controlling risks is a full-time job in large investment projects and needs to be treated as such.
Yet, companies are reluctant to invest in risk management systems and the necessary structures or resources required. The longer term costs for projects that aren’t successfully completed, in terms of quality, time, budget, however, far exceed those initial investments. Only if risk management is embedded at the appropriate organisational, hierarchical and strategic level, can it be fully effective, and deliver the best outcomes and benefits.