1. Getting started
If you’re just at the early stages of preparing for life after LIBOR , you may find the scope and complexity of the project to be pretty daunting. Certainly, the stakes are high, and you may need help from internal and external partners who don’t understand the urgency.
LIBOR affects virtually all aspects of the organization. There is a lot of uncertainty about existing contracts, what regulators want, how the industry will evolve, and more. This is a dynamic problem — and it can be both highly technical and operationally complex.
PwC can help you see how this could affect your strategy and operations, the potential economic impacts — and what you can do about it.
2. Moving your transition plan forward
If your program is underway, you’ve likely already seen some of the subtleties. Before you think about remediating contracts, you have to find them all – and make sure your terms are consistent. To monitor risk, you may want to have a LIBOR view and a SOFR view – and you may need to update policies and systems. Your operational systems, from interest rate calculations to security master data, may need changes – and with the whole industry starting to pay attention to the transition, trained resources are getting harder to find.
We understand the potential pitfalls because we’ve been doing the work. Whatever your industry, we can help you find solutions to your toughest LIBOR transition issues, from tax to third party risk management.
3. Using the transition for competitive advantage
Market leaders understand that the LIBOR transition actually gives them a terrific opportunity. With your knowledge of the subtleties of SOFR and other ARRs, you may be able to create new, truly differentiated products. By digitizing your contracts, you may improve customer experience and increase loyalty. The updates you make to systems and processes can make you more agile and more efficient. And managing the transition across multiple ARRs may increase your global competitive position.
Some people view the LIBOR transition as an infrastructure problem. We can help you see it as part of a digital transformation program that can lead to sustained growth.