ApracticalwaytothriveintransitionuncertaintyAccenture2019LIBORSurveyLIBORATION2LIBORATIONAPRACTICALWAYTOTHRIVEINTRANSITIONUNCERTAINTYAccenture’s2019LIBORSurveyinterviewed177firmsacrossthefinancialservicesindustry,includinginvestmentbanks,commercialandretailbanks,corporates,assetmanagersandinsurancecompanies.3LIBORATIONAPRACTICALWAYTOTHRIVEINTRANSITIONUNCERTAINTYUnpreparedforaComplexTransitionThough84%ofsurveyedfirmshaveaformalLIBORtransitionplan,thelevelofpreparednessislowwithonly18%ofrespondentsdescribingtheirplansas‘mature.’Inaddition,manyfirmsareundertakingmultipleactivities,leadingtolessclarityontheoverallimpactofthetransitionacrossbusinesslines.Despiteregulatorsurgingpreparedness,manysurveyedrespondentsfeelthatLIBORreportingandavailabilitywillnotcompletelyceasein2021.Itisthoughtbymanyacrossthefinancialservicesindustrythatthepathtotransitioncouldbelongerandmorecomplicatedthananticipated,withsomerespondentshopingregulatorsshowsimilarflexibilityasinthepastasthelooming2021deadlineapproaches.Financialservicesfirmsarelargelyawareofwhattheyshoulddo,buttheyseemtounderestimatethecomplexityofthetaskathand.Theapproachestakenbyrespondentstodateappearsiloedandnotintegratedacrossbusinesslinesandwithtechnologyfunctions.Wealsoseerespondentsaddressingtransitionneedsindisparatewaysandwithvaryinglevelsofmaturity.IndustryConflictionandConflictedIndustryThe2019LIBORSurveyhighlightsconflictingviewpointsregardingreadinessandpriorities.Thisindicatesthatrespondentsmaylackaclearunderstandingofthelevelofgranularityandfocusrequiredtoaddressthetrueimpactofthetransition,whichmayleadtohighertransitioncosts,lesscertaintyinachievingtransitiongoalsandevenadverseclientandreputationalimpact.Whileovereightintenrespondentshaveaformaltransitionplan,farless(59%)haveaunifiedandconsistenttransitionandremediationapproach.Furthermore,aquarterplantoallocatefundstoproductdesignoverthenextthreeyearswhileoneinsevenplantoinvestintechnologyandaboutoneinteninlegalremediation,criticalareastoaneffectivetran...
