As the financial services industry collaborates to develop alternative reference rates (ARRs) to replace LIBOR, they need to ask whether their employees, board members, and customers understand the significance of the shift. Do these stakeholders know the timing and potentially extensive business impacts of the transition to ARRs, and are they prepared for their role in the transition?
KPMG’s most recent paper addressing LIBOR, entitled Have you heard? LIBOR ends 2021: communicating on the transition, addresses the importance of developing a communication strategy as part of a firm’s efforts to plan for the LIBOR transition. It describes the key messages needed by a variety of stakeholder groups as well as the appropriate communication vehicles for conveying information effectively. This paper also outlines the guiding principles and basics of a LIBOR communication strategy and provides a framework for ensuring that the right level of communication is delivered to the right stakeholder, through the right channel, with the right message.