In this new Accenture Finance & Risk document we present the key finding from a global study across financial services firms to assess the impact of the LIBOR transition. Visit www.accenture.com/LIBORsurvey for more information

1. 2019 LIBOR SURVEY
September 2019
Thriving in transition
uncertainty
LIBORATION

2. Executive Summary

3. Accenture conducted an industry-wide survey across financial services firms
to assess their level of readiness, their ability to transition away from LIBOR,
the challenges faced and the impacts of the transition.
The Challenge
The replacementof LIBOR by 2021
presents significantchallenges for
financial services organizations
across business functions,including
risk, operations and technology.
As the deadline approaches firms
should be ready to adapt quickly and
move with the market to reduce
operational, financial and reputational
risk, and to limit impacts to business
and infrastructure, as well as liquidity
and basis risk through funding and
hedging operations.
Industry Perspective
Accenture’s 2019 LIBOR survey
interviewed 177 firms across the financial
services industry, including investment
banks, commercialand retail banks,
asset managers, insurance companies
and corporates.The emerging narrative
from the survey was a mixed picture of
preparedness.The 2021 deadline for
when the Financial ConductAuthority
(FCA) will cease requiring LIBOR banks
to reportis fast approaching, and survey
respondents seem under prepared with
less than 20% describing their transition
program as mature.
Accenture Can Help
Accenture has developedend-to-end
capabilities to help with the assessment
and execution of LIBOR transformations.
Through a dedicated globalteam with
the skills and experience required to
provide strategic supportand a robust
LIBOR ecosystem,we can deliver
actionable solutions that can help any
financial firm effectivelyorchestrate their
transition, and transform their operating
modeland infrastructure to respond to
the challenges ahead.
Executive Summary

4. The Challenge of the LIBOR Transition
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.
Unprepared for a
Complex Transition
A wait and see approach to
the LIBOR transition in the
hope regulators show flexibility
with the 2021 deadline thus
exposing firms to additional risk
Industry Confliction
Transitioning to a multi-rate
environment challenges
firms’ priorities on what
they “need to know” and
how to respond effectively
Drivers and Passengers
on the Road to 2021
Understanding the full
impact of the transition is
key to driving a remediation
and transition program
Impact Assessments
Identify impacts of
transition across key
functions, business lines
and product groups
Mobilization
Industrializing innovative
technologies can identify,
monitor and help manage
the mobilization phase
and replace old
legacy technology
Transition
Transitioning with industry
peers and evolving to attract
the appropriate talent can
reduce risk and allow integrated
cross-industry testing in new
multi-rate environment
Where industry is placed
2019
2020 2021

5. LIBOR Survey – Results and Analysis

6. Of the 177 financial services and industry respondents interviewed, the emerging
narrative is a mixed picture of preparedness for the LIBOR transition.
The Emerging Narrative from 2019 LIBOR Survey
Unprepared for
a Complex Transition
Though 84% of surveyed firms
have a formal LIBOR transition
plan, the level of preparedness
is low with only 18% of
respondents describing their
plans as “mature.” While firms
are aware of what they should
do, they seem to underestimate
the complexityof the task at
hand, and approaches taken are
oftensiloed and not integrated
across business function.
Industry Confliction
and Conflicted Industry
The survey highlights conflicting
viewpoints regarding readiness
and priorities.This indicates
that respondents maylack a
clear understanding of the level
of granularity and focus required
to address the true impact of the
transition, which may lead to
higher transition costs,less
certainty in achieving transition
goals and even adverse client
and reputational impact.
Is Overconfidence
Increasing Risk
Responsespoint to a certain
level of overconfidencefor
what can be describedas a
very demanding and complicated
transition away from LIBOR,
which appears to be driven by
a lack of appreciation for the
practical challenges and real-
world issues surrounding the
transition. Survey findings,
and our discussions with
clients, indicate there is a lack of
strategic foresight,and thinking
in any sort of holistic way.
Drivers and Passengers
on the Path to 2021
Survey results indicate that
while some respondents are
choosing to actively “drive” a
remediationand transition
program across their
organization to meet the
deadline, others are taking a
more passive stance. Firms
across the industry should
balance their responseand
assess how passive or
dynamic to be in their
approach and spend foran
orderly and timely transition.

7. Survey results indicate that total spending on LIBOR remediation varies considerably
depending on industry, geography and company size.
Not surprisingly, spending on LIBOR transition
rises in proportion to organization size.
For example, firms with assets under
management (AUM) of $500 b or more spend
a mean $212 m, and those with revenues of
$25 b spend $235 m.
Investment banks expect to spend more than
any other surveyed industry with substantial
representation in our survey ($121 m).
The small handful of captive finance respondents
expect to spend a mean of $156 m.
UK-based respondents expect to spend more
than those in any other geography ($128.7 m).
Focus Areas
1%
2%
10%
20%
26%
24%
2%
14%
0% 5% 10% 15% 20% 25% 30%
USD 400 million or more
USD 300 million – 399 million
USD 200 million – 299 million
USD 100 million – 199 million
USD 50 million – 99 million
USD 20 million – 49 million
USD 10 million – 19 million
USD 10 million or less
Source: Accenture 2019 LIBOR Survey, August 2019.

8. Survey results indicate that respondents are focusing their spending on Operational
Readiness, Legal and Risk Management over the next 3 years.
Spending on LIBOR
transition rises in proportion
to organization size.
Investment banks expect
to spend more than any
other industry.
Overall the surveyed
respondents are focusing
their remediation actions on
Risk Management, Legal and
Contractual, and Operational
Readiness functions over
the next 3 years.
Focus Areas
Risk Management
Transition Program
Governance
Legal & Contractual
Accounting & Tax
Portfolio & Product Strategy
Valuation & Exposure Management
Clients
Global & Cross Currency
Cross Industry Testing
Operational Readiness 2019
2020
2021
Source: Accenture 2019 LIBOR Survey, August 2019.

9. Survey results indicate that respondents are focused across Capital Markets,
Banking and Insurance – with total spend across these three areas greater than $100 m.
Focus Areas
$44.6 million
$93.5 million
$124.5 million
$141.7 million
$- $50 $100 $150
Immature
Established
Strong
Mature
Maturity scale self-reported LIBOR program maturity level
$54.4 million
$106.8 million
$113.4 million
$117.4 million
$- $20 $40 $60 $80 $100 $120
Corporates
Insurance
Banking
Capital markets
Source: Accenture 2019 LIBOR Survey, August 2019.

10. Survey results indicate that product design is favored when it comes to transition funding.
Focus Areas
Source: Accenture 2019 LIBOR Survey, August 2019.
All financial services
subsectors allocate funding
in a similar way—with product
design taking priority and
client outreach receiving
the least amount of support.
Though our results are
directional rather than
statistically significant,
corporate respondents tend
to allocate more funds toward
operations (20% on average)
than any other area.
8%
9%
13%
14%
17%
17%
23%
0% 5% 10% 15% 20% 25%
Client outreach
Legal remediation (excluding external counsel)
Operating model (people, process, policy and function)
Technology/system configuration
Operations
Risk models
Product design

11. Survey results indicate that respondents have differing expectations from global regulators.
Focus Areas
Source: Accenture 2019 LIBOR Survey, August 2019.
Large majorities of mature
organizations (more than
80% for most statements)
agree with every statement
here—significantly more
than immature organizations.
43% of immature
organizations agree that
regulatory uncertainty is
holding back remediation
efforts, slightly more than
mature organizations (38%).
Respondents expecting
LIBOR to discontinue before
2021 are more likely to agree
with these statements.40%
45%
47%
47%
48%
48%
49%
50%
51%
53%
0% 10% 20% 30% 40% 50% 60%
We feel confident that we understand the regulatory
expectations across jurisdictions for an LIBOR transition
Given the regulatory uncertainty we expect that our
regulators will provide relief to our organization
We are developing our LIBOR transition plan to
consider multiple regulatory scenarios
We have clear expectations and understanding of
our client expectation/requirement
We believe the transition away from LIBOR will lead
to an increase in industry fragmentation
We have a sufficient number of resources allocated/
planned to enable a LIBOR remediation initiative
We feel confident that we have the necessary talent and
capabilities to complete our LIBOR transition by 2021
We have established a framework to adapt to the
accumulation of risk
We have sufficient funding allocated/planned to enable
a LIBOR remediation initiative
We believe that regulatory uncertainty/lack of
clarification is holding back our remediation efforts

12. Survey results indicate that a majority of respondents expect LIBOR to terminate in 2021 or earlier.
Focus Areas
Source: Accenture 2019 LIBOR Survey, August 2019.
Mortgage banking (45%) and
card banking (43%) respondents are
more likely than the total to think
LIBOR will discontinue before 2021.
75% of respondents who describe
their transition program as “mature”
and 63% of those who rate their
program as “strong” say LIBOR will
discontinue before 2021. By contrast,
no “established” or “immature”
respondents have that expectation.
It’s likely that organizations develop
LIBOR maturity because they expect
a faster transition.
23%
46%
32%
0% 10% 20% 30% 40% 50%
LIBOR to gradually discontinue post 2021
LIBOR to discontinue at 2021
LIBOR to discontinue before 2021

13. Survey results indicate that respondents consider project
managers to be key resources in the LIBOR transition.
Focus Areas
Source: Accenture 2019 LIBOR Survey, August 2019.
Investment banking
respondents are more
likely than those in other
financial services
subsectors to say
risk management /
front-office quants are
important (85%).
Card banking
respondents are more
likely than those in other
financial services
subsectors to say
technology analysts
are important (73%).
28%
15%
14%
10%
9%
7%
6%
39%
37%
35%
32%
29%
20%
15%
33%
48%
51%
58%
62%
73%
79%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Tester
Business analysts
Legal
Technology analysts
Data analysts
Risk management/front-office quants
Project managers
Lower importance Medium importance Higher importance

14. Half of survey respondents say LIBOR represent a strategic opportunity.
Focus Areas
Source: Accenture 2019 LIBOR Survey, August 2019.
Wealth management firms (67%)
are the most likely financial services
subsector to agree with this statement;
retail banks (54%) are least likely.
94% of “mature” organizations
see LIBOR transition as a strategic
opportunity, vs. 3% of “immature,”
suggesting that organizations with
more sophisticated transition plans have
realized the value of the transition.
40% of organizations that think
LIBOR will gradually discontinue after
2021 disagree with this statement.
Agree,50%
Neither agree
nor disagree,
35%
Disagree,15%

15. Most survey respondents anticipate modest gains from a new reference rate.
Focus Areas
Source: Accenture 2019 LIBOR Survey, August 2019.
4%
32%
28%
18%
8%
6%
3%
2%
0% 5% 10% 15% 20% 25% 30% 35%
Do not know
0-49 basis points
50-99 basis points
100-199 basis points
200-299 basis points
300-399 basis points
400-499 basis points
500 basis points or more

16. Survey indicates that respondents expect incremental revenue as a result of the new reference rate.
Focus Areas
Source: Accenture 2019 LIBOR Survey, August 2019.
56 basis points
78 basis points *
98 basis points *
119 basis points *
123 basis points
125 basis points *
127 basis points
132 basis points
134 basis points
134 basis points
140 basis points *
149 basis points *
159 basis points
161 basis points *
0 20 40 60 80 100 120 140 160
Captive finance
Resources
Life insurance
Health and life sciences
Investment banking
Communications, media and high tech
Asset management
Wealth management
Corporate banking
Retail banking
Property and casual insurance
Mortgage banking
Card banking
Products and services
*Due to the small n-counts in this subsector, results are directional

17. Among survey respondents SOFR leads by far as an alternative reference rate.
Focus Areas
Source: Accenture 2019 LIBOR Survey, August 2019.
23%
28%
34%
68%
85%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
EUR/ESTER
CHF/SARON
JPY/TONAR
GBP/SONIA
USD/SOFR

18. Accelerating Toward an Effective Transition

19. LIBOR
Transition
Impact
< 2 Years
Limited timing for
market change-over
with regulatory scrutiny.
~$155 b
Unprecedentedbusiness
and technologycost
(estimated).
Complex and
Invasive Change
with interdependencies
across organization
and industry.
Costly transition
Significant investment required
to transition to the new regime with
no guarantee of offsetting revenue.
Pervasiveimpacts
to businessand infrastructure
Large scale changes to contracts,
business and technology are required
to remove LIBOR and establish
amended and new products.
Marketuncertainty
Uncertainty around rate
replacement timing and
application across geographies
leads to difficulty in planning.
Integration
Stakeholders from across firm
functions and lines of business to
work together to reduce the risk of
siloed approaches to transition.
Impacts to liquidity
and basis risk
Firms should understand the
fundamental differences in new
reference rates and analyze impact
to funding and hedging.
Keepingpace
As market dynamics evolve, firms
should adapt quickly and be ready
to move with the market to reduce
operational and financial risk.
SIX KEY
CONCERNS
LIBOR reform presents
a set of unique concerns

20. Steps for LIBOR Transition
As financial firms plan their transition they should assess and prioritize the key decisions to be made.
2.1 Transition Strategy
Define an Integrated LIBOR Transition Strategy to
capture productchanges, client outreach, contract
remediation,and impacts to pricing and modeling.
3.2 InfrastructureChanges to Ops & Technology
Implementand test systems to support new
products,contracts,disclosures,risk management,
operations and technologyto operate in a post-
LIBOR environment.
01. ImpactAssessmentand
LIBOR Program Structure
Impactassessmentconducted
across the firm considering
all interdependencies.
LIBOR program launched
and key functions and
stakeholders identified.
2.2 Detailed BusinessChanges
Outline details of productand operating model
changes, define how business is to be conducted
in the new rate environment and mitigate the
impact of LIBOR replacement.
3.1 Transition Execution
Transition clients and contracts to new reference
rates and maintain operational readiness across
the firm while accounting for infrastructure changes.
01. Impact
Assessment
and LIBOR
Program
Structure
2.2 Detailed Business Changes
2.1 Transition Strategy
3.1 Transition Execution
3.2 Infrastructure Changes
to Ops and Technology

21. 10 No Regret Immediate Actions
Due to future regulatory uncertainties and compressed timeline for change,
financial services firms should consider “no regret” actions to be prepared for change.
Mobilize Program
Mobilize transition program with
dedicated staff, appoint senior
sponsors, and program leads.
Impact Assessment
Start top-down analysis to identify
and quantify risk, impacts and changes
across products, contracts, processes,
and technology.
Baseline Scenario
Develop baseline scenario
for transition covering financials,
risk, contracts and infrastructure.
Transition Strategy
Develop a transition plan and front
to back product and technology
strategy against regulatory timelines,
milestones and scenario assumptions.
01 02 03 04
LIBOR Governance
Identify key stakeholders and develop
strong governance and accountability
model to escalate decision making.
Plan and Budget
Create the change plans and budget to
prepare for LIBOR transition activities.
Communications Strategy
Define internal and external
communications plan and a client
outreach strategy for the transition.
Digitize Contracts
Digitize contracts, extract data
required, analyze fall backs and
create a central contract database
for LIBOR contracts.
05 06 07 08
Risk Management
Develop risk management plan
to mitigate exposure to operational,
liquidity and basis risks through
transition.
Product and Portfolio Strategy
Begin developing new or amended
products and portfolio strategy
referencing new risk-free rate.
09 10

22. Emerging View on Technology

23. Many vendor solutions revolve around agile turn around and R&D through small structured teams.
Varied release timelines
to support enhanced
T+1 rates and daily
compounding have
a potential impact on
liquidity across firms
using different platforms.
Emerging View on Technology
Many vendors support
the LIBOR transition
from Main Office
locations and R&D
with dedicated teams.
In general,
customized solutions
to accommodate for the
LIBOR transition are
not being considered.
Trade Capture
Platforms do not see the
LIBOR transition as an
opportunity for firms to
replace legacy systems
while data, document
and risk vendors do.
On average, Trade
Capture Platforms
were more confident in
their LIBOR transition
solutions than Data
or Risk vendors.
The majority of vendors
provide functionality-
specific training to
clients that upgrade.
The majority of vendors
do not require firms to
upgrade to new modules
to transition from LIBOR,
but instead to deploy
via patch.

24. Survey results indicate technology solutions are in alignment with industry perspective and focusing
greater resource investment in front office quants and data analysts.
Focus Areas
Vendor solutions that have a
stronger front office perspective
seem to have a stronger interest
in investing in quants, risk
managers, financials engineers,
and business analysts.
Vendor solutions with a less
developed front office market
perspective are more focused on
project managers and testers.
Risk Management/Front Office Quants
Business Analysts
Data Analysts
Project Management
Testers
Technology Analysts/Developers
Legal Specialists (SME)
Mature Established Developing
Source: Accenture 2019 LIBOR Survey, August 2019.

25. Emerging View on Technology
Trading Platform
Technology
Document Management
Solutions
Risk Analytics
Platform
Data Research
Solutions
Direct support or
subcontractor model
Direct Support Direct Support Both Direct Support Direct Support
Dedicated team ✓ ✓ ✓ ✓
Functionality to assist banks
with LIBOR replacement ✓ ✓ ✓ ✓ ✓
Functionality catered to
trigger events (end of LIBOR) ✓ ✓ ✓ ✓
Multi-rate scenario for
financial products ✓ ✓ ✓ ✓
Educational materials and
trainings for clients ✓ ✓ ✓ ✓
2019
2020 2021
Trading
Platform A
Risk Analytics
Platform
Trading
Platform B
Document
Management
Solutions
Trading
Platform C
Data
Research

26. Emerging View on Technology
TradingPlatform
Technology
DocumentManagement
Solutions
Risk Analytics
Platform
Data Research
Solutions
Average size of team for
LIBOR transition support
< 500 < 500 < 500 20K – 50K
Directsupportvs.
subcontractor
Direct Both Direct Direct
LIBOR dedicated team Yes Yes No Yes
Software update process Patch Licensed Patch Patch
Key functionality
for clients
Operations / Events
Processing
Analytics and Reporting
Legal
New Risk Models
Analytics and Reporting
New Risk Models
Data Archiving
Analytics and Reporting

27. Primary Trading Systems (PTS) to extend well beyond just pricing and deal capture functionality and
provide analytical solutions for transition events.
Benefits of Enhanced LIBOR Trading Platforms
Emerging View on Technology
Effective new rate / product
pricing to allow front office to
properlymanage opportunities
on productP&L transition.
Enhanced and established pricing /
and risk management models allow
for issuance / transitions in new rate
products and to address postrate
transition business objectives.
Real-time review of portfolio
allows analysis of each event
in terms of Risk and P&L.
Reduced collateral/ counterparty
credit risk (CCR) evaluation risk.
Reduced margining and hedging risk.
Reduced operationalrisk.
Transition EventSolutions
• Functionality to perform transition
betweenOLD indices and risk-free
rates (RFR) for cleared and non-
cleared
Enhanced
LIBOR Platform
Solutions
Analytics Reporting
• Profit and Loss (P&L)and DV01
Reports
• RiskAnalytics
• Hedge Accounting
Computational
Solutions
• T+1 rate fixings
• Rate Look
Back / lock out
periods
• Simple and
Average Accrual
calculations
• Value
Adjustment
Spreads
Prepackage
Solutions
• Preferred
Practice
Automated
Solutions
• Preconfigured
Risk and Curve
Packages
• Risk
Management
Scenarios
Ability to manage
P&L impactof rate
transition on products
01
02
03
Faster Go-To-Market
(GTM)with new
product/ rate
offerings templates
Reduced Enterprise
Risk through
Transition Analytics

28. Survey respondents think that the LIBOR transition provides an opportunity to implement new systems
and replace internal legacy systems that may be too onerous to update to meet regulatory requirements.
Focus Areas
Source: Accenture 2019 LIBOR Survey, August 2019.
Smaller organizations (less than
$100 b in AUM) are less likely than
respondents overall to agree (38%
vs. 48%), likely because updating
legacy systems is not a huge issue
for them. In contrast, 59% of the
largest organizations agree with
this statement.
97% of organizations with “mature”
LIBOR transitions agree, vs. just
2% of “immature” respondents.
Agree, 48%
Neither agree nor
disagree, 35%
Disagree, 17%

29. Survey results indicate that many organizations are looking to replace booking and trading systems
to upgrade technology.
Focus Areas
Source: Accenture 2019 LIBOR Survey, August 2019.
61% of “mature” organizations
say they expect to replace booking /
trading systems (vs. 51% total);
58% to replace liquidity management
systems (vs. 48% total).
Retail banks (61%) and corporate
banking respondents (60%) are more
likely than the total (51%) to replace
their booking / trading systems).
7%
20%
28%
29%
45%
48%
51%
54%
0% 10% 20% 30% 40% 50% 60%
Data warehouses/lakes
Market data providers
Legal systems
Pricing/modelling systems
Settlement/operational systems
Liquidity management and hedging
Booking/trading systems
Risk systems

30. Appendix

31. Thriving in Transition Uncertainty
The transition away from the LIBOR benchmark rate
is expected to be very demanding and complicated.
In response, Accenture commissioned a survey to
gauge financial services firms’ level of readiness,
their ability to transition away from LIBOR, the
challenges faced and the impacts. Download the
survey findings now or contact us to find out more.
www.accenture.com/LIBORsurvey
Liboration

32. Thank you
Contact us
SamanthaRegan
Managing Director
Accenture Financial Services
Accenture Finance & Risk
Accenture Regulatory & Compliance Lead
samantha.regan@accenture.com
SharonBiran
Managing Director
Accenture Financial Services
sharon.r.biran@accenture.com
Venetia Woo
Director– Accenture Financial Services
Accenture Finance & Risk
NA Regulatory Strategy Lead
venetia.w.woo@accenture.com
Lisa Bloomberg
Director– Accenture Financial Services
Accenture Finance & Risk
NA Regulatory & Compliance LegalLead
lisa.bloomberg@accenture.com
Peter Beardshaw
Managing Director
Accenture Financial Services
Accenture Finance & Risk
UKI Finance & Risk Lead
peter.beardshaw@accenture.com
Maria Soutemenoglou
Managing Director
Accenture Financial Services
UKI Capital Markets LIBOR Lead
maria.soutemenoglou@accenture.com
Usman Raj
Senior Manager
Accenture Financial Services
Accenture Finance & Risk
usman.raj@accenture.com
Eva Maybud
Managing Director
Accenture Financial Services
Accenture Finance & Risk
ASG Treasury & Capital Markets Lead
eva.maybud@accenture.com
Aida Rodriguez Moral
Senior Manager
Accenture Financial Services
Accenture Finance & Risk
Iberia LIBOR Lead
aida.rodriguez.moral@accenture.com

33. Thank you
Accenture2019 LIBORSurvey
https://www.accenture.com/LIBORsurvey
To find out more
https://www.linkedin.com/showcase/16183502
https://twitter.com/AccentureFSRisk
AccentureFinance& Risk Blogs
https://financeandriskblog.accenture.com
AccentureFinance& Risk
https://www.accenture.com/financeandrisk

34. Thriving in Transition Uncertainty
About Accenture
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providing a broad range of services and solutions in strategy,
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Visit us at www.accenture.com
Liboration
Disclaimer
This presentation is intended for general informational
purposes only and does not take into account the reader’s
specific circumstances, and may not reflect the most current
developments. Accenture disclaims, to the fullest extent
permitted by applicable law, any and all liability for the
accuracy and completeness of the information in this
presentation and for any acts or omissions made based
on such information. Accenture does not provide legal,
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licensed professionals.