Risk Management from Corporate and FM Perspectives: Two case studies

Purpose: To investigate how Risk Management (RM) is perceived and practiced in Facilities Management (FM) and corporate management and to evaluate the potential benefits of an increased application.
Theory: RM is a generic management discipline, but apparently it has not achieved the attention it deserves in FM. Application of RM in FM could help to increase the strategic importance and awareness of FM among corporate managers.
Approach: A preliminary study with expert interviews was initially conducted followed by a main study with an interview survey in two Danish case companies - a real estate company and a consulting engineering company.
Findings: The research showed that RM was applied in both companies to a higher degree than initially expected, but often using other terminology. The real estate company had a much stronger focus on RM in relation to the technical aspects of real estate administration than in relation to general business and corporate management, whereas the consulting engineering company as a contrast had much stronger focus on RM in relation to general business and corporate management than in relation to FM. This reflects the differences in core business and what is seen as most critical in each company. Both companies could benefit from a more integrated application of RM covering both corporate management and FM.
Originality/value: This is among the first descriptive studies looking at RM from both corporate and FM perspectives, which is essential to increase the strategic importance of FM.