Don’t get left in the dark
As the 2021 deadline for switching off LIBOR approaches, transitioning to risk-free rates (RFR) represents a critical, complex challenge for financial institutions. Yet, according to our 2019 LIBOR Survey only 20% of these businesses believe they are prepared for the change. Our skilled, dedicated global team can help you build actionable solutions to transition as smoothly as possible.
Deal with the unknown by getting to know it
At Accenture, what sets us apart is our ability to implement a LIBOR transition that has you covered from end-to-end. You can trust our specialist teams to make an impact across all areas of your business, from front office to legal and technology. And as a member of the Federal Reserve Board and the Federal Reserve Bank of New York’s Alternative Reference Rates Committee (AARC) in the U.S. and the Working Group on Sterling Risk-Free Rates in the U.K., among others, our approach is informed by the relationships we’ve established with key industry leaders.
A plan that has you covered from end-to-end
Our comprehensive and industry-tested playbook can provide the solutions to help you transition from LIBOR with confidence. Set out in three clear waves, each one has been designed with clear and defined actions that we’ll tailor to your business.
1.0 Impact assessment and program structure
Conduct an impact assessment considering all interdependencies and key stakeholders, and develop strong governance to help escalate decision making.
2.0 Transition strategy and business change
Create an integrated LIBOR transition strategy around product changes, client outreach, contracts and pricing.
3.0 Transition execution, operations and tech change
Transition your business and contracts to new rates while maintaining operational readiness.
A three-wave dynamic approach
Our approach is active and nimble, as the focus on LIBOR is expected to be uneven on the transition journey to 2021, and firms should be ready to adapt quickly as market dynamics evolve.
The three-wave approach allows necessary activities to be handled both sequentially and in parallel using data and analytics to effect a transition strategy, and facilitate business and infrastructure changes resulting in an efficient execution of a transition program.
What we offer
Our suite of tools and capabilities are the key to helping you plan your LIBOR transition. By effectively assessing and prioritizing key decisions and building a solid strategy for implementation, we can guide you through a smooth operational transition.
1. Transition office
We have developed LIBOR specific Program Governance materials to assist program managers in tracking plan progress, spend and other program metrics.
2. Impact assessment
Our framework assesses all aspects of the transition process, from products and financials to communications planning and operating models.
3. Transition strategy
We’ll undertake an in-depth analysis of front to back technology strategies to develop a transition plan that meets regulatory timelines.
4. Transition analytics and reporting
Our risk assessment monitoring frameworks help our clients analyze the timings and impacts of different regulatory guidelines.
5. Operational readiness
We have developed an Operational Checklist and LIBOR Training materials to facilitate the transition.
6. Contract remediation
Build a central contract database for all LIBOR contracts with the help of our legal and technology vendors, alliances and partners.
7. Client outreach and communications
Our framework can help define both internal and external communications plans, alongside a client outreach strategy for the transition process.
8. New rate product infrastructure
Our data veracity validator analyzes data against quality, risk and relevance parameters to help guide your data driven decisions.
9. Risk, finance and treasury infrastructure
We’ve developed a framework and resource capacity model to support clients in updating their current models on Treasury cash and securities products.
10. Data remediation
We’ve developed metadata frameworks to help identify the key data elements requiring remediation to facilitate the LIBOR transition.
11. Release planning and execution
We’ve developed a flagship program management application that leverages AI infused automation to manage LIBOR program dependencies.
12. Test and quality assurance
Our long-standing relationships with leading platform vendors helps accelerate necessary technology upgrades.
What we think
Two milestone Accenture surveys offer critical insight and guidance on LIBOR transition.
Take a closer look
Dig deeper and explore specific LIBOR implications, challenges and solutions. Can you use further insight around certain risks associated with LIBOR? Are all your financial functions ready to step to the plate and handle their individual LIBOR transition activities? Learn how we can help you address your financial firm’s LIBOR challenges.
The role of internal audit in a LIBOR transition
Legal transformation and contract remediation
LIBOR and conduct risk
An experienced and dedicated team of global LIBOR specialist to help orchestrate your transition.