Public sector managers need to step-up their risk management arrangements during 2004, warned Alarm, the national forum for risk management in the public sector.

It said growing awareness of the threat of possible terrorist attacks had made many public sector organisations increase their focus on risk management, but that there were many more improvements to be made.

Issues such as compensation fraud, reputational risks, workplace risks and e-risks were among problems which caused disruption during 2003, said Alarm, and it warned that new risks were likely to emerge throughout 2004.

Alarm chief executive Sheila Boyce said: "With the ever-changing environment in the public sector, many new risks will emerge. Often with proper risk management arrangements these risks can be identified at an early stage and managed so that they do not cause disruption.

"Many public sector organisations may feel that they have everything under control having dealt with effectively the new risks which emerged last year, but the fact is that this must be an ongoing process."