The remediation of contracts involving LIBOR is one of the most significant challenges facing the financial fector. With $340Trillion worth of contracts needing to be reviewed and remediated before the end of 2021, the scale of the task is significant. Contract Management Lifecycle is a key part of the process. Hitachi is uniquely placed to address the required functionality and meet this regulatory requirement, whilst accelerating digital transformation. The following are the main prerequisites:
- With content sources held in a variety of forms, including Paper, electronic systems and Digital content, being able to automatically ingest and identify the LIBOR terms and conditions needing remediation and prepare a remediated draft schedule as a start point is critical.
- Identifying ownership of action, providing control through approvals and management dash boards for monitoring progress and identifying bottlenecks can only be achieved with an automated remediation process
- Automate the Governance lifecycle of contracts, including providing traceability of actions performed on contracts, ownership, and retention policies.
- Secure, targeted access control, ensuring that only those with the right to work on a contract do so and this being applied both inside and outside the organisation holding the contract. Allowing the correct people, to perform the correct tasks, at the correct time in the process typically involve some form of two factor authentication for external access.
- The ability to Digitally Sign contracts to an applicable and recognised legal standard such as eIDAS. This supports the accuracy and future proofing of the validity of the process, as well as increasing the timeliness. With further Covid lock downs threatened, digital signatures may prove to be essential when completing the process in a timely manner.
- Provide ongoing contract management post remediation, including archiving.
- Support Compliance and Regulatory processes, ie. GDPR reporting.
Whilst the timescale on this is tight, the right contract management is an investment in future proofing Contract Management delivery in any organisation. Ideally, the CLM process should be part of your future Digital business model.
As part of Hitachi´s digital transformation capability, the Contract Lifecycle Management solution for Libor (and for contracts in general) is a core foundation of our digital offering and it meets all the above regulatory criteria. For further details, please contact rob.rowe@hitachivantara.com
