Besides probing how the YJB is led, the review will also assess how major projects are managed and the way in which custodial places are commissioned.
The possibility of linking up with other parts of the public sector, voluntary and community and private sectors will also be explored.
News of the review comes as discussions on the future shape of the YJB continue to take place, with chair Frances Done keen to devolve the cost of custody to local authorities.
The review will be jointly chaired by Done and Dame Susan Street, former permanent secretary of the Department for Culture, Media and Sport.
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