Efforts to skip the London interbank offered rate for new transactions by end of next year are forcing finance executives to take stock of their contracts, communicate with banks and investors and adjust their interest-rate cost calculations.

Global policy makers decided to do away with Libor, an interest-rate benchmark underpinning trillions of dollars worth of financial instruments, after concluding it was prone to manipulation. Banks face a 31 December 2021, deadline to replace Libor with alternative rates for new contracts following a yearslong transition effort.