Risk management used to be something nice to have but is now a must, according to Sharon Roots, a senior member of ALARM (Association of Local Authority Risk Managers).
She said risk management "must be an essential and integral part of every organisation's activities".
She added: "Neither is it enough now to confine it purely to insurable loss control - the focus must be on prevention rather than damage limitation."
Roots believes that risk management has now become so important that local authorities and other public bodies "no longer have a choice" and simply must use it.
Risk management is now part of the Comprehensive Performance Assessments and is a requirement of the Audit Commission.