Risk management plays an integral role in financial planning for 81 per cent of local authorities, a new survey reveals.

The National Forum for Risk Management in the Public Sector (Alarm) also found that risk management is closely tied to strategic planning at 78 per cent of councils.

In the three years since a Risk Management Benchmarking Survey has been conducted, attitudes to risk have developed significantly, playing a clearer and more substantial role in innovative projects, service delivery and corporate aims.

“The survey results demonstrate considerable progress in public risk management, particularly with regard to the management of internal risks,” said Dr Lynn Drennan, Alarm’s chief executive.

The Audit Commission’s risk management specialist Gareth Kelly added: “It is encouraging that the majority of respondents to the survey indicate risk management is starting to make a significant contribution to better outcomes.”

Both emphasised the need to do more.

Respondents to the survey identified critical incidents and business continuity; partnerships; failure to achieve objectives; service delivery and housing stock transfer as the leading risks facing the public sector.

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