Assessing Your LIBOR Exposure

The LIBOR cut-off deadline is quickly approaching and organizations might feel like they are a little behind analyzing their LIBOR exposure. In fact, earlier this year Duff & Phelps, conducted a survey that revealed only half of organizations polled are prepared to fully decommission LIBOR by the December 2021 deadline.

To help take the first step to a successful LIBOR transition, we have published a complimentary LIBOR Transition Toolkit. The purpose of the Toolkit is to provide you with a guide and template to assist in gathering the appropriate documentation to assess your LIBOR-linked exposure, which includes:

• on-balance sheet LIBOR-linked instruments, and
• off-balance sheet exposures such as accounting considerations, valuation and risk management models, third-party vendors, information technology and treasurer management systems.

Documenting your LIBOR-linked exposures is an imperative initial step in developing a LIBOR transition plan in consideration of the facts and circumstances applicable to your portfolio.

You can access our LIBOR Transition Toolkit here.

Following the completion of your LIBOR exposure assessment, you will have to consider the next steps in your firm’s transition away from LIBOR. Depending on the breadth and depth of your LIBOR exposure, this could involve establishing a change management project with its own governance and project managers to ensure swift progress and implementation of your transition plan. This includes documentation of milestones achieved, as it relates to regulatory guidance and industry practice.