Transcript Management 5-Point Action Plan Summary October 2010 Timeline Completed/Implemented Problem Identified Inefficiencies and gaps in control framework governing investment lending (IL) (i) non-rationalized “one-size-fits all ” requirements irrespective of.

Management 5-Point Action Plan
Summary
October 2010
Timeline
Completed/Implemented
Problem Identified
Inefficiencies and gaps in control framework
governing investment lending (IL)
(i) non-rationalized “one-size-fits all ”
requirements irrespective of risks
(ii) over-focus on project preparation at the
expense of implementation, and
(iii) outdated and complex policy framework
Diffused management and staff
accountability and responsibilities for
operational quality
Inadequate mechanisms for institutional
risk identification monitoring and
management
Inadequate integration of fraud and
corruption issues in daily operations
Issues relating to fiduciary controls in the
areas of financial management and
procurement, particularly during project
implementation
IT system vulnerability
Difficulties in timely accessibility to
operational documents
Mismatch between AAA types & processes
Corrective Action
I. Improve efficiency, effectiveness and controls for IL
1. Match the demands of the process to the level of risk and focus resources on higher risk
projects
2. Strengthen IL supervision by increasing resources, support and management oversight
of project implementation
3. Tailor design and financing options under the IL instrument more closely to the needs,
capacity and risk profile of clients
4. Consolidate multiple rules into clear key principles to inform design and processing
II. Strengthen risk management capacity, incentives and accountability at
the project and institutional levels
At the project level:
5. Review lines of accountability at the management and staff level
6. Introduce incentives and greater management support and oversight and communicate
expectations to staff
At the institutional level:
7. Prepare an annual Integrated Risk Report
8. Review QAG, to inform a broader assessment of gaps and overlaps
III.
9.
10.
11.
12.
13.
14.
Better integrate fraud and corruption prevention into operations
Establish clear responsibilities and accountability for addressing F&C issues
Establish appropriate protocols of cooperation between INT and the regions
Promote ‘good practices’ across the Bank Group’s work
Improve tools such as smart project design
Prepare and monitor specific action plans for following up on INT reports
Issue OPCS Guidance on addressing GAC issues in projects.
IV. Tighten Fiduciary controls:
In financial management (FM)
15. Institute corporate monitoring of quality
16. Integrate IT systems tracking project performance
17. Ensure that all records relating to quality arrangements for FM are maintained and up to date
In procurement
18. Ensure more consistent follow through and establish clear mechanisms to resolve disagreements
19. Update procurement policy to incorporate risk management, enhance complaints handling and
mainstream risk-base procurement assessment
V. Strengthen role of IT in risk management and improve AAA
processes :
20. Prevent password sharing and strengthen controls to privileged systems
21. Improve accessibility of operational documents through automation
22. Rationalize processes and controls governing AAA, address compliance issues
identified by IEG and QAG; improve system support and monitoring
Completion
by
June 2011
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