For collaboration there needs to be a matrix system, where the managers of each report to a head who looks into both the departments.
Ideally both the departments should be separate and each should have separate goals but for the over all strategy to be successful, there needs to be proper collaboration and a exact margin definition for risk and quality. So that they work as maker and checker for each other.
This Matrix arrangement with separate goals for risk and quality managers and some shared objectives would be able to initiate collaboration, get better results and initiate collaborative efforts which would help both the departments to achieve their goals.
So, no, the department should not be combined and be operated separately with the deparmental managers and supervisory director sharing the mix objectives.
And for sure each department manager be reporting to the same director, that helps resolve conflicts, have shared goals which will lead to higher collaboration.
This one of the best option with capacity of handling larger operations, but if the set up is small it can be combined into one department with shared responsibility and it can have better collaboration between Risk and quality management.
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