Improving Public Debt Management
In the OIC Member Countries
12
Performance Indicator Description
5. Debt Recording and Operational Risk ManagementDebt Administration
and Security (1) Availability and quality of documented procedures for the
processing of debtrelated payments
(2) Availability and quality of documented procedures for debt and
transaction data recording and validation, as well as storage of
agreements and debt administration records
(3) Availability and quality of documented procedures for controlling
access to the central government’s debt data recording and
management system and audit trail
(4) Availability and frequency of offsite, securely stored debt
recording and management system backups
Segregation of Duties,
Staff Capacity and
Business Continuity (1) Segregation of duties for key functions and the presence of a risk
monitoring and compliance function
(2) Sufficient staff capacity and human resource management
(3) Presence of an operational risk management plan, including
business continuity and disaster recovery strategies
Debt and DebtRelated
Records (1) Completeness and timeliness of central government records on its
debt, loan guarantees and debtrelated transactions
(2) Complete and uptodate records of government securities holders
in a secure registry system, if applicable
Source: World Bank (2015)(1) Governance and Strategy Development
Legal framework and managerial structurePublic debt management requires a legal framework defining the authority for public debt
management operations such as borrowing and issuing new debt, undertaking debtrelated
transactions and providing loan guarantees. The managerial structure should include a clear
definition of roles and responsibilities. Generally, it is recommended to have a division
between the political level, i.e. the president, minister of finance, the cabinet, the parliament or
congress, or any other responsible political authority at the executive level who sets the
overall government debt management objectives and decides on the risk level that the
government is willing to tolerate, and the executive level, i.e. the entities responsible for
implementing such policy decisions (see Figure 11).