Financial Services

Stay on when LIBOR is switched off

With a dedicated team of specialists at the ready, we’ll help you transition with ease, at speed and on time.

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.

Survey exposes transition issues

Survey exposes transition issues

We interviewed 177 firms across financial services and corporate industries about their LIBOR preparedness.

Accenture surveyed firms cite a lack of clarity from regulators and a lack of understanding across jurisdictions of what is required to transition from LIBOR by 2021.

Transition to risk-free rates with confidence

The 2021 deadline for financial firms to switch off LIBOR and transition to risk-free rates is fast approaching. But few are prepared for all the challenges and opportunities that lie ahead. Learn how Accenture can help you transition to the new with confidence.

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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.

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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.

Get a detailed view of the LIBOR Transition Plan.

Our three-wave transition approach covers impact assessment to define the program structure, transition strategy to drive business change and transition execution to implement infrastructure changes.

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.

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What we think

Two milestone Accenture surveys offer critical insight and guidance on LIBOR transition.

2019 LIBOR Survey: Are you ready to transition?

2019 LIBOR Survey: Are you ready to transition?

Our survey found transitioning from LIBOR represents a critical, complex challenge for banks, capital markets and insurance providers.

2019 Global Risk Management Study

2019 Global Risk Management Study

Our survey of financial services risk leaders finds them facing new risks emerging faster than ever. Industry reports take a closer look at LIBOR.

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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.

SLIDESHARE

The role of internal audit in a LIBOR transition

SLIDESHARE

Legal transformation and contract remediation

SLIDESHARE

LIBOR and conduct risk

Our leaders

An experienced and dedicated team of global LIBOR specialist to help orchestrate your transition.

Alliances

We extend our capabilities through a network of alliances.

Blogs

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Read our blog posts for the latest insights on what replacing the LIBOR rate could mean for your business

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CCP discounting switch to new risk-free rates

The Central Clearing Counterparty (CCP) Discounting Switch is a key milestone in the LIBOR transition. Accenture’s post explains what it is.

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How to build a contract remediation factory

Financial firms can consider methods for assessing and amending contracts using a rules engine and technology tools.

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Finance & Risk

Preparing for 2021 CCAR ahead of LIBOR cessation

Banks will need to prepare for 2021 CCAR submission with LIBOR in mind. Accenture’s blog offers ideas for developing a CCAR Q4 2020 Remediation Plan.

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