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Reading between the lines it sounds like the "risk" is that assessment of proposals is based on project, not researcher's track record? The old "giving you money is a risk because we've never given you money" trap :)
If that’s what they meant, it’d have been more accurate to say “We gave money to lots of projects which didn’t match our mistaken preconceptions of who should be given money” 
To bend over backwards in their favour I guess their goal is to show that the overall investment is low risk because they're very good at selecting high risk projects that will succeed... I don't say it makes sense, just that that's the pressure they're under...
...possibly more to the point, we've got to a place where resources are so tight and so much good work goes unfunded that our community's idea of 'high risk' is 'not guaranteed to succeed within five years' They could probably toss a coin for selection and get similar results.
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