• Alternative reference rates
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  • Global Research And Analytics
November 01, 2019

Leaving LIBOR

Surmounting the transition challenges

The transition from LIBOR to alternative reference rates (ARR) is slated to happen in 2021. That’s not far away given the amount of work and challenges that lie ahead.


CRISIL, an S&P Global company, is working on several fronts to offer smooth transitions to the new industry benchmarks.


In the milieu, CRISIL, in partnership with the Professional Risk Managers’ International Association, recently hosted discussions with senior risk management professionals on the emerging challenges such as:


  • Transition impact assessment and structuring: For trade economics, clients, technical, accounting and processes
  • Methodology and risk: Inconsistent fallback provisions across products, challenges in creating new products based on ARRs, and risk model updates and development
  • Product strategy: New product and service design, and managing the economic impact on the existing LIBOR portfolio
  • Contract amendments and reporting: Changes to existing contracts and meeting new requirements for regulatory reporting
  • Technology, systems and operations changes: Front, middle and back office - all need to undergo significant changes to prepare for the transition to new ARRs

For details, download the report.