But John Drew also stressed that scoping work undertaken by the YJB had revealed it could make considerable savings by sustaining lower levels of custody in the youth secure estate.
His comments follow the government's decision to place the YJB under sole responsibility of the Ministry of Justice (MoJ), having previously been split between the MoJ and Department for Children, Schools and Families.
"We are, as an organisation, particularly vulnerable in this period," said Drew. "The government has a stated approach to arm's length bodies. No organisation has a God-given right to exist. Every organisation has to justify its existence."
Drew said savings will need to be made by the YJB, but added there is sufficient scope for reining in spending without making substantial cuts to early intervention and prevention budgets.
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