As the new President of Chartered Accountants Ireland, Sinead Donovan is intent on showcasing a vibrant profession to ‘Next Gen’ members As she prepares for the year ahead as President of Chartered Accountants Ireland, Sinead Donovan’s key objective will be positioning the profession to attract the next generation. Her appointment to the role at the Institute’s AGM on Friday, 19 May, was a source of deep and genuine pride for Donovan, whose late father Cecil Donovan took on the same role in 1986. “It means a huge amount to me personally because of my father’s legacy and, professionally, I see it as the pinnacle of my career so far,” says Donovan.  “I’ve wanted to get here for a long time, because it matters enormously to me to be able to emulate my father, whom I admired so much, and to represent the profession I love.”  In the year ahead, Donovan says she will give “every possible effort” to representing all members of Chartered Accountants Ireland on the island of Ireland and overseas.  “The way I look at it, this role is about passing on the baton for the benefit of our members and the wider profession now and into the future,” she says. “My father passed the baton to me and being a Chartered Accountant has always felt to me like being part of a family that is unique in how we support each other. “So, my job is to pass the baton to the next generation – to show them what this profession is really about, and all that it can offer – and bring them into the family of accountants in which I have been able to build a fulfilling career that I love.” Donovan’s career has brought her to the pinnacle of the profession, as Chair of Grant Thornton Ireland and a Partner in the firm’s Financial Accounting and Advisory Services practice. “There has been a lot of variety in my career and a lot of opportunity. I have built some amazing relationships and worked in environments that are just really people-focused. “So, I want to get away from this idea of the ‘grey-suited accountant’ who works only with numbers. That is just not what a career as a Chartered Accountant is about.” Despite this, the perception of the profession among the Gen Z cohort (born between the mid-90s and early 2000s) now entering the workforce is not as positive as Donovan would like it to be. Gen Z research findings Recent Gen Z research carried out by Chartered Accountant Ireland, under the auspices of Chartered Accountants Worldwide, revealed a troubling ‘perception gap’ between respondents who had no experience of chartered accountancy and those who had commenced their training.  The study aimed to find out how the ACA qualification is perceived by Gen Z respondents in Ireland and worldwide. The Gen Z respondents in Ireland with no experience of chartered accountancy reported viewing the profession as challenging (56%), numbers-based (34%) and boring (19%).  They were considerably less likely than the global average to view the profession as purpose-led (2%), creative (0%), or exciting (4%).  Encouragingly, however, the Irish respondents who had begun their training were far more likely to view it as varied (up from 8% to 25%) and purpose-led. The respondents in this cohort describing it as boring halved.    “It’s clear that, once students commence their training, they get a much better sense of what the qualification is about, but for those who haven’t made the decision yet, the perception gap is pretty stark,” Donovan says.   “Irish students recorded a significant difference in perception, which shows us there is work to do. Engaging the next generation of accountants and the next generation of leaders will be front of mind for the Institute this year.” There are more routes into the profession today than ever before, but as Donovan sees it, more must be done to promote the qualification to the next generation, including changing the established and accepted ways of doing things.  “If the next generation does not buy into what we do and see itself in our profession, it will be because we are not adequately selling it to them, whether at school or third level, or in the early stages of their professional training,” she says.  “I want to ensure that students understand what ACA is and what the benefits of entering the profession are. Gone are the days of calculators and ledgers. Our focus now is on technology, data analytics, leadership skills and global developments.  “Being an Irish Chartered Accountant is respected around the globe and the qualification enables truly global travel and ability to do business. Our profession is in the middle of a recruitment and retention challenge and if we don’t step up to harness this talent pool, we are missing out.” Next Gen values and skill sets  There has been a lot of attention in public discourse about the need to ‘step up’ post-pandemic and help students and new recruits adapt to the working environment, Donovan says.  “There is also a need for us to re-examine that status quo and use this opportunity to ensure the environment is one that works for the next generation of the profession. Those at the start of their careers are seeking a greater degree of flexibility and better work-life balance and genuine diversity, equity and inclusion at work. “This idea of the ‘grey-suited accountant’ is just not it anymore. What I see in our younger members is a very vibrant cohort who will be leading business decisions into the future,” Donovan says. “They value sustainability and Chartered Accountants have an enormous role to play here in every sense – not just in terms of reporting and assurance, but also in shaping sustainability policy within companies and in advising organisations on sustainability best-practice.” Technology will also continue to play an ever-greater role in the work of the Chartered Accountant of the future, Donovan says. “Our Next Gen members will have to be at the forefront of information technology and data analytics, and in understanding the impact Artificial Intelligence is bringing to the world,” she says. “So, we need to make sure their education in these technologies is deep and comprehensive so that they are fully equipped with the skills they need to thrive in a rapidly changing world.” Next Gen education  For Donovan, education is also critically important to ensuring that the profession is “represented credibly” to the Next Gen members of Chartered Accountants Ireland.  “We’ve got to engage them in interesting methods of learning, syllabus content and topics that are actually relevant to the work of the Chartered Accountant from second level right through to third level, in their training and exam experience with the Institute and right through their career from there,” she says.  “In terms of secondary-level education, Pat O’Neill, our outgoing President, has done amazing work over the past year in raising awareness of how outdated the current Leaving Cert accounting syllabus is.  “The Institute has had a number of meetings with the Department of Education and Minister Norma Foley on this issue and Pat will now continue in the year ahead to progress to the next phase of this effort, which will be about driving action in updating the syllabus sooner rather than later.” As it stands, Chartered Accountants Ireland is already leading the way in helping secondary school pupils around the country understand what a career in accountancy is really about. In early 2020, the Institute launched Boot Camp, an online programme designed to help Transition Year and Senior Cycle students improve their accounting and business skills. The Boot Camp Challenge presents participants with a realistic scenario of a business in trouble, whose management must make important decisions about its future. Students review the relevant financial information, consider the wider circumstances, and suggest a possible course of action.  The programme has over 5,000 users active in all 26 counties in the Republic of Ireland “I’ve done the Boot Camp challenge myself, it’s brilliant. It teaches pupils about business, about how accountants are engaged in really critical business decisions, and the impact these decisions can have,” says Donovan. “Most importantly, I think it shows them that accountancy is not all about maths and numbers and breaks that perception that, unless you’re really good at maths, a career in accountancy isn’t for you, because that’s not the case at all.” Project Athena roadmap Innovation is already leading the educational agenda within Chartered Accountants Ireland, which completed Project Athena in 2022. Undertaken with funding from the Chartered Accountants Education Trust, the extensive research project included close to 100 interviews with senior members, academics and regulators in Ireland and overseas.  The findings were academically validated by Trinity College’s Learnovate Centre and will now drive the Institute’s Next Gen educational strategy.  “The roadmap for future innovation in education stemming from Project Athena is in place and we will begin to introduce changes to our education tools and delivery methods from September 2024 starting with CAP 1 and moving to CAP 2 and FAE,” says Donovan. “Some of the developments we’ll be seeing over the next two to three years will include real-time exams, which will bring more certainty to students as well as greater flexibility.  “Data analytics will be used to review students’ activities and performance on an ongoing basis so we can see how each of them is getting on in real-time and identify who might need help and support before their exams.” Global member outreach Chartered Accountants Ireland is Ireland’s largest and oldest professional accountancy body. Dating back to 1888, it represents over 31,700 members around the world and is currently educating more than 7,000 students.  It is an impressive reach and one Donovan plans to harness as she endeavours to highlight the vibrancy and variety of the profession in her role as President. “Above all, I want all of our members to know that they can reach out to me. It’s incredibly important to me to be accessible and plugged into what people are doing. I’m on social media channels, particularly LinkedIn, and I’m more than happy to engage with people, if they want to, any time,” she says. With members in more than 90 countries and active local chapters in international cities ranging from New York in the US and Sydney in Australia to Dubai in the United Arab Emirates, the Institute has a healthy presence outside the island of Ireland. “My outreach work over the next 12 months will be international as well as national. I want to meet as many members as I can in the UK, the US, Australia and the Middle East – wherever I can get to, I will! “I worked in Australia myself back in the 1990s, so I know how much it means when a President or Officer Group visits from the Institute.  “When you’re away from home, your accountancy family becomes even more important and it’s just lovely to see the President and to see them interact with, and hear the views of, members overseas.” On home turf, Donovan’s itinerary will be no less busy as she has plans to visit, celebrate and engage with District Society members across the island. “We plan to hold our council meeting in November in Cork with a dinner in the evening for our members there and that’s very much along the lines of what I want to do throughout the next 12 months — just get out there and meet members as much as I can.” Beyond its own activities, Chartered Accountants Ireland offers a crucial voice to members on the world stage in professional, policy-related and regulatory matters relevant to its membership.  The Institute is a founding member of Chartered Accountants Worldwide, an international network of over one million chartered accountants. It also plays key roles in the Global Accounting Alliance, Accountancy Europe and the International Federation of Accountants.   Advocacy and representation will be another key priority for Donovan. “I’m very keen to continue growing and solidifying these relationships so that our members have the voice they deserve wherever it needs to be heard,” she says.  “I want to build on the relationships and reciprocity agreements we have with other corporate bodies throughout the globe and to make sure that we take every opportunity to let the younger generations we want to attract to the profession know that ours is a global qualification that can take them all over the world.”

In a competitive business landscape, recruiting top talent is a strategic imperative for organisations. Paul O’Donnell unveils the three Cs to attracting and securing the best candidates for your organisation’s success Great talent makes great organisations, not just because of their higher productivity but also the influence they have on the commitment and standards of others. Great talent is scarce, and as we head into more uncertain economic times the “war for talent”, as framed by Steven Hankin of McKinsey back in the 1990s, has already kicked off. Whether you hire directly or work with a search partner, the process of winning great candidates demands real attention to the full hiring cycle. To attract really great talent, organisations need more than the basics of a good recruiting process. Here are three key questions to ask and steps to take to ensure the best candidates say yes to your organisation. 1. Communication: What can your target talent pool read about you online? If you have a talent acquisition team or marketing function, dedicate a resource to continuously evaluating how the outside world sees your firm. What compelling story will your target talent pool read about the difference your organisation makes to its customers and community? What messages can they see from current employees as advocates for working with you? Where does your target talent pool like to spend time online, and is your message strongest here? 2. Contribution: What problem exists in your organisation by not having this role filled? Role and organisational purpose are the top attractions for the best talent. Does the organisation’s purpose matter to the candidate, and is your organisation the right place to address it? What difference can their effort make for stakeholders? These are your key questions externally and during your hiring process. 3. Character: What traits in the candidate does your firm want for the whole organisation? Complementary culture and values between a high performer and your organisation are essential. Losing a high performer over a lack of values alignment is optically poor and will reverberate internally and externally. Conversely, great talent can be extremely influential in changing the behaviour of those around them, so mapping the characteristics you seek for the whole company before hiring anyone new is vital. In an excellent article in MIT Sloan Management Review, “Make Leader Character Your Competitive Edge”, Mary Crossan, Bill Furlong and Robert D. Austin describe how character, when valued equal to competence, can result in better decisions and outcomes. The next time you hire externally, consider communication, contribution and character to put your own organisation first in the candidate’s decision-making process. Paul O’Donnell is CEO of HRM Search Partners

As artificial intelligence increasingly becomes integral to business operations, establishing an effective AI policy is crucial for boards. Stephen Conmy delves into the key steps boards should take to create a comprehensive AI policy  Creating your company’s artificial intelligence (AI) policy involves carefully considering various ethical, legal and operational aspects. Here’s a 10-step guide to how a board of directors can develop an AI policy – and communicate it effectively to the executive management team and staff. 1. Establish a working group Form a working group of board members, executives and relevant stakeholders to lead the AI policy development process. This group will oversee policy creation, gather necessary expertise and ensure representation from various departments and stakeholders. 2. Educate the board All board members should have a foundational understanding of AI and its ethical implications. Board members should have training sessions or workshops to familiarise themselves with essential AI concepts, such as algorithmic bias, privacy concerns and AI’s potential impact on employment. 3. Define the policy’s objectives Identify your organisation’s primary objectives in adopting AI technology. These objectives will shape the overall direction of the policy. This may include improving your company’s efficiency, enhancing customer experience or promoting innovation. 4. Assess the ethical principles and values Determine the ethical principles and values that guide AI development and deployment within your organisation. It would help if you considered fairness, transparency, accountability and well-being concepts. These principles will help establish a solid ethical foundation for the AI policy. 5. Evaluate legal and regulatory compliance Understand the legal and regulatory landscape surrounding AI, including data protection laws, privacy regulations and industry-specific guidelines. Ensure the AI policy meets these requirements to avoid legal risks and uphold compliance. 6. Identify potential AI use cases and risks Identify the specific use cases and applications of AI within your organisation – where will it be used, by whom and for what purpose? Assess the associated risks, including potential biases, security vulnerabilities and unintended consequences. Next, develop guidelines and best practices to mitigate these risks. 7. Establish accountability and governance Who will be responsible for your AI policy? Define the roles and responsibilities of stakeholders involved in AI development, deployment and monitoring. Establish clear lines of accountability and governance mechanisms to ensure ethical decision-making and risk management throughout the AI life cycle. 8. Ensure transparency and explainability Promote transparency and explainability in AI systems by requiring clear documentation, responsible data practices and understandable algorithms. Ensure that stakeholders, including employees and customers, can comprehend the basis of AI decisions and raise concerns if necessary. 9. Encourage continuous monitoring and evaluation Implement mechanisms to monitor an AI system’s performance, impact and adherence to ethical standards over time. Regularly evaluate the policy’s effectiveness and make necessary adjustments based on feedback and emerging best practices. 10. Communicate the AI policy Craft a comprehensive AI policy document that encompasses all the elements above. The policy should be written in clear, accessible language and provide practical guidance. Communicate the policy approach to the executive team and staff through various channels, such as company-wide emails, town hall meetings and training sessions. Stephen Conmy is Head of Content at The Corporate Governance Institute

The Economic Crime and Corporate Transparency Bill 2022 aims to bolster corporate transparency and combat economic crime. Maeve Hunt explains the two key takeaways for entities registered at Companies House and their directors In the single biggest change to the role of the UK Register of Companies since it was created in 1844, the Economic Crime and Corporate Transparency Bill 2022 seeks to make a number of modifications to company law with the aim of enhancing corporate transparency and reducing economic crime. To facilitate this, the Bill seeks to make further provisions about companies, limited partnerships and other kinds of corporate entities, and around the registration of overseas entities. The legislation, on receiving Royal Assent, will affect all those who interact with Companies House, whether individuals (directors, secretaries and people with significant control of entities registered at Companies House) or entities, including companies, limited partnerships, limited liability partnerships and overseas businesses. There will also be an impact on agents of such entities, such as those who provide company secretarial services. At the time of writing, the Bill is in the reporting stage in the House of Lords, which gives all members of the Lords a further opportunity to examine and make amendments to the Bill. Once the Bill becomes legislation, there will be a period of transition to allow individuals and companies sufficient time to comply with the additional requirements. There are two key considerations for entities registered at Companies House and their directors: identity verification and increased filing on the Register.   Identity verification To enhance the transparency of controllers and owners of businesses on the Register, Companies House will introduce mandatory ID verification for directors, company secretaries, people with significant control and others associated with those entities, such as their agents. The ID verification process will use technology to verify the identity of the person in question by comparing their photograph with an official government ID, such as a UK-issued passport. A director, company secretary or person with significant control will not be considered legally appointed until the ID verification process is completed, and they will be unable to act in that capacity or make filings at Companies House. This will cover both UK-resident and non-UK-resident individuals. For newly appointed individuals, the process will need to be completed prior to appointment. For existing roles, there will be a transition process to allow ID verification to be completed. If the verification is not completed within this timeframe, the individual will be removed from their role in that entity. Separate provisions will cover those who do not hold UK-issued identification, such as overseas nationals, or those unable to use the web-based service. For corporate directorships, similar provisions will also apply. A UK company will only be able to be appointed as a corporate director when all its directors are natural persons, and those natural persons are subject to appropriate ID verification checks. Non-UK companies will no longer be permitted to act as corporate directors. These provisions also extend to directors of overseas companies registered at Companies House. Improving financial information on the Register Currently, 3.1 million sets of accounts are published on the Register each year, and access to these accounts is arguably the most valuable service that the Register provides. Companies House will require all financial statements submitted to be in Inline Extensible Business Reporting Language (iXBRL) format. These tags are machine-readable, which will make the data easier to interrogate, compare and check, aiding Companies House in carrying out its new responsibilities for maintaining the integrity of the data it holds, identifying and addressing errors, and sharing data under certain strict conditions with other bodies such as law enforcement. Companies House currently accepts accounts in iXBRL format, as well as in paper format and most companies will be required to include a set of accounts in a similar, but not identical, format when filing their corporation tax returns with HMRC. There are currently reduced filing options for some companies where they meet the ‘small’ or ‘micro’ criteria set out in the Companies Act 2006. Such entities currently have an exemption from filing their Profit & Loss Account, and, for small companies, a Directors’ Report. A micro company is exempt from having to prepare a Directors’ Report. These reduced filing options will be removed, meaning small and micro companies will file their full financial statements, including a Profit & Loss Account and Directors’ Report (where applicable), which will be publicly available. Maeve Hunt is a Director of Audit and Assurance at Grant Thornton NI

Environmental, social and governance reporting is now considered paramount for many organisations. Derarca Dennis outlines five essential steps for getting it right. Irish organisations of all sizes will be affected by an ever-increasing volume of environmental, social and governance (ESG) reporting requirements. Even businesses that fall outside the scope of the regulations and reporting standards are likely to be required to align with them to meet customer and stakeholder expectations and requirements. The EY Ireland CFO Survey 2023 points to ESG still being perceived as a compliance and regulatory issue rather than an opportunity. Only six percent of the respondents say increasing the sophistication of non-financial reporting is one of the top strategic areas of focus over the next five years, down from 15 percent in 2022. Irish finance leaders will, therefore, need to increase the sophistication of their non-financial reporting and prepare for the advent of new and more exacting regulations in the coming years. They must also put in place the systems that will enable them to move the dial from compliance to value-creating opportunities for their organisations. Improved reporting It is vitally important for every Irish organisation to assess their current and potential obligations under both existing and upcoming regulations and reporting standards. To prepare for what will be an ever-increasing compliance burden, Irish organisations need to take the following steps. Gap assessment Organisations should carry out an assessment of any gaps between their current disclosures and existing and future reporting requirements to ensure compliance with the reporting regime as it stands and identify measures required to meet the requirements of upcoming regulations and standards. It will also build internal competencies to assess any gaps that might emerge. Governance Adopting a clear governance structure for sustainability reporting and management across the business is vital for ensuring accountability of key performance metrics and targets. Engagement at board level through the establishment of a sustainability reporting sub-committee is an important element of such a structure. Data and controls The creation of a centralised data management system for ESG data owners to feed into will simplify the reporting process and establish internal controls surrounding ESG data. Assurance readiness Irish organisations should keep future compliance in mind when conducting changes to their systems and controls to avoid having to make further changes later. Early involvement of organisations’ audit committees can assist in this process. Double materiality assessment A requirement under the Corporate Sustainability Reporting Directive, double materiality can allow an organisation to map the impact their business has on stakeholders and the environment, as well as the financial impact that sustainability issues will have on cash flows. Training Organisations should provide training to employees on ESG matters and regulations to engender a broader understanding of these matters and their importance across the business. Integration The ESG agenda is evolving at pace. New regulations and reporting standards along with market pressure will require CFOs to integrate non-financial reporting into their existing systems. This will place a heavy burden on finance teams, but it will also present opportunities for value creation through increased efficiencies, enhanced risk management and improved competitiveness. Derarca Dennis is Assurance Partner at EY Ireland

Despite rising inflation and interest rates, Ireland’s SMEs are prioritising innovation to stay competitive in a tough market, writes Neil Hughes Inflation is the number one threat facing Irish SMEs at present (56%), followed by rising interest rates (40%) and the availability of talent (34%). These were some of the main findings of the new Azets SME Pulse Survey undertaken with iReach, surveying senior leaders at 211 SMEs across Ireland in April and May. Forty-three percent said they were expecting the economic climate to worsen over the next 12 months. Only 18 percent are expecting an improvement. If economic uncertainty persists, one-in-three (36%) said they would consider cutting jobs. It is clear that inflation is proving to be a significant challenge for SMEs throughout the country. Every aspect of doing business is becoming more expensive and rising prices are putting a squeeze on already tight operating margins. Given the numerous challenges facing owner-managed and family businesses in Ireland, there is likely to be a greater number of SMEs needing support in the face of financial difficulty.  Rising prices, combined with the significant levels of tax warehoused during the COVID-19 pandemic that will fall due, mean that there are likely to be hundreds of SMEs facing financial difficulty that may need to be restructured.  I would encourage SMEs facing financial challenges to get advice on restructuring and find out if there are funding or finance options that might support their business. The Small Companies Administrative Rescue Process (SCARP) or examinership could help save their business and the jobs they support.  The main sources of funding SMEs expect to avail of in the coming year include their own cash (24%) and government grants or subsidies (19%). Just 13 percent are considering private equity, nine percent bank funding and four percent venture capital.  Forty-six percent of our respondents believe the government should provide additional grants and supports to help navigate the challenges ahead, and 35 percent want additional funding for skilling and upskilling initiatives. Twenty-five percent of our SME Pulse Survey respondents told us they expect the tax burden to increase, while 10 percent expect it to fall. When asked about the outlook for their own business, 19 percent said they expect their revenue and profits to increase in the year ahead, 63 percent expect no change and 18 percent are anticipating a decrease.  Despite the obstacles they are currently navigating, SME leaders believe that innovation will provide the greatest opportunity for their business over the coming six months. It is encouraging to see SMEs remain optimistic about the future of their business and committed to pivoting their business models and embracing digitalisation to fuel growth. There is no doubt that technology, whether for cybersecurity, data analytics, remote working, e-commerce or process automation, will be key to their ongoing resilience and competitive advantage. This will be critical as they continue to adapt to a rapidly evolving world.  The Azets SME Pulse Survey also reveals that only one-in-five Irish SMEs are currently measuring their carbon footprint.  They are beginning their sustainability transformation journey and ESG considerations will increasingly shape their business strategy – whether this is in the reduction of their environmental impact or promoting greater diversity.  Close to one-in-three SMEs are currently reducing the carbon footprint of their business. The main challenge they face in progressing their ESG goals is the cost involved. With Ireland committed to becoming net zero by 2050, however, SMEs will have to adapt.  Neil Hughes is CEO of Azets Ireland

Cloud computing has revolutionised how businesses operate but it has also given rise to new risks, challenging organisations to navigate security breaches, data privacy concerns and governance, writes Jackie Hennessey While cloud computing offers some great benefits such as reduced costs, flexibility, and scalability, it also introduces a unique risk profile, including information security, data protection, service availability and increasing regulatory requirements. Striking a balance between managing this risk and leveraging the power of the cloud is crucial. Effective cloud governance that promotes optimisation and does not create barriers to innovation can help organisations strike this balance. Navigating the key risks of the cloud Risks need to be governed and managed to ensure that cloud technology is being used responsibly and in compliance with regulatory expectations. As a result, it is more important than ever to understand and mitigate these potential risks to leverage cloud computing safely. Your first step to determining your cloud risk exposure is understanding the following six potential risk categories: People: Lack of available resources with the correct skill set; Data security: Failure to implement sufficient and appropriate security controls to protect data and prevent data loss through unauthorised access; Compliance: Failure to meet regulatory compliance requirements (including across multiple jurisdictions); Operational: Failure to implement cloud processes, systems and controls aligned with current policies; Financial: Failure to perform proper cloud spend management around unplanned spikes in transaction volume and traffic; Third-party: Lack of third-party oversight, including failure to acknowledge the increased risk of cloud vendor lock-in, vendor unreliability and dependencies. Cloud management Cloud-focused governance bodies Cloud governance bodies will be required to develop, monitor and evolve cloud governance over time by leveraging existing governance forums or establishing new ones with responsibility for: Cloud governance – formulating initial cloud governance policies, monitoring compliance and reviewing exceptions and proposed changes; Cloud operations – managing day-to-day cloud operations, service provision and related issues. Management of CSPs The approach to managing cloud service providers (CSPs) should be formalised and include processes for: Ensuring CSPs have adequate controls in place; Onboarding and offboarding of cloud services from CSPs; Monitoring of performance in line with Service Level Agreements (SLAs); Oversight of outsourcing arrangements carried out by CSPs (i.e. sub outsourcing); Ensuring exit strategies are in place for the termination of services (both expected and unexpected). Cloud strategy A cloud strategy should be developed or considered as part of the technology and outsourcing strategies. The cloud strategy will need to remain aligned with the business’s strategic objectives and be reviewed and updated periodically. Data privacy and security Data privacy and security policies and processes should be updated to consider the use of the cloud and additional controls that may need to be implemented as a result of this, such as: Sensitive data ownership and classification; Data flows and requirements for data transfer; Data loss prevention and rights management for cloud data at rest, in transit and in use. Cloud capabilities Mechanisms should be implemented to ensure ongoing resource availability with the right expertise and skill set. Cloud policies and processes Cloud policies and processes should be developed to define how the cloud is managed and monitored. These policies and processes should be communicated to appropriate stakeholders across your organisation to support ongoing compliance. Regulatory compliance Regulatory horizon-scanning mechanisms should be in place to identify the regulatory compliance landscape and expectations for cloud services relevant to your organisation. Jackie Hennessey is a partner in Risk Consulting at KPMG

The Lean methodology can help companies increase client satisfaction, cut costs and improve profitability, writes Willie Cleary The most important stakeholders for all companies are their clients. Without satisfied clients, there is no business, so understanding and accurately mapping your customers’ experiences is crucial. Doing so can help to ensure that your clients are getting the best possible product or service while also identifying and helping to manage aspects of your product or service that could be improved. Lean is a well-proven methodology that could help your business achieve these goals. What is Lean? Lean is a process improvement methodology that originated in manufacturing (e.g. car-maker Toyota) and has since been adopted by many other industries and professions.  At its core, Lean focuses on identifying and eliminating waste in a process, which can add value for clients and result in higher residual returns for business owners. Lean is a four-phase process involving the following steps: Identifying the client journey; Identifying value-added and non-value-added activities in a process; Removing non-value activities from the process; and Engaging in continuous improvement of the process. Step 1: Identifying the client journey The first step in mapping a client’s experience is to identify their journey from start to finish. This may include their initial consultation or onboarding and regular interactions thereafter, including the supply of goods or services.  The starting point here usually involves visually mapping out the entire process – on a whiteboard, for example.  All relevant team members must be included in this mapping phase to ensure that the necessary process improvement steps are captured, documented and fully understood by all. In a professional service setting, for example, the client’s journey after the initial consultation might include a formal letter of engagement.  If accepted by the client, this letter would lead to an onboarding process whereby the client would provide relevant information and documentation to the service provider. The service provider would then work with the client, providing regular updates in the lead-up to the final output, including a business plan, financial statements or tax returns. Step 2: Identifying value-added and non-value added activities  Once the client’s journey has been accurately mapped, the next step is to identify value-adding and non-value-adding activities.  Value-adding activities are those that contribute directly to the client experience. They may include meeting with clients to discuss their needs, preparing financial statements or business plans and providing regular updates or feedback. Non-value-adding activities do not contribute directly to the client’s experience – waiting for a response, for example, or unnecessary paperwork. All non-value activities must be clearly identified to improve the efficiency of the client’s journey. To identify value-added and non-value-added activities, you can use the “five whys” technique. This involves asking “why” five times to get to the root cause of an issue.  If you identify that waiting for a response from a client is a non-value-added activity, for example, you can ask why the response is needed. If the response is needed to complete the work, you can ask why it is needed to complete the work, and so on, until you get to the root cause of the issue. Step 3: Removing non-value activities from the process The third step in the Lean process involves removing non-value-added activities from the customer journey – streamlining processes, reducing bureaucracy and simplifying procedures, for example.  Removing these particular activities can create a more efficient process that adds value for your clients, mainly by reducing related costs.  You may be able to automate some of your client communication, for example, by using online document management systems to reduce paperwork. Step 4. Engaging in continuous process improvement The fourth step in the Lean process involves continuously improving the client’s experience of your business.  The output of this exercise may involve implementing new process changes based on client feedback or inefficiencies identified by your staff in their day-to-day work. Step four has two phases: Applying metrics or key performance indicators (KPIs) to measure the effectiveness of business processes (e.g. client satisfaction or query response times). By monitoring these metrics or KPIs, the business can more easily identify areas for further improvement. Involving core team members in continuous improvement by encouraging them to suggest improvements, solicited or unsolicited, and empowering them to make positive changes. This process can be supported by providing training and development opportunities for your team. The power of continuous improvement Lean is all about continuous improvement, so it is crucial to seek regular stakeholder feedback while reviewing business processes and identifying areas for improvement on an ongoing basis.  Mapping your clients’ experiences of your business has many potential benefits. It can help you to identify and eliminate costly inefficiencies, improve the client experience and increase profitability.  Willie Cleary, FCA is a Lean Consultant with LeanTeams

The Corporate Sustainability Reporting Directive aims to improve the quality, comparability and relevance of sustainability reporting by companies in the EU. Brendan Ringrose explains what it’s all about The pandemic, turmoil in Ukraine, stricter regulatory controls and the effects of climate change have all contributed to the heightened level of urgency surrounding environmental, social and governance (ESG) reporting. The Climate Action and Low Carbon Development (Amendment) Act was signed into law in July 2021. The Climate Act commits Ireland to reaching specific greenhouse gas emission-lowering targets by 2030 and 2050 and provides a framework for doing so. Greenwashing and reporting The European Commission’s Corporate Sustainability Reporting Directive (CSRD) is a proposed legislative measure aimed at improving the quality, comparability and relevance of sustainability reporting by companies in the EU. One of the main objectives of the CSRD is to address the problem of greenwashing, which occurs when companies make false or misleading claims about ESG performance to improve their reputation or gain competitive advantage. Greenwashing undermines the credibility and effectiveness of ESG reporting, making it difficult for investors, consumers and other stakeholders to assess the true sustainability performance of a company. The CSRD will apply to all large companies and all companies listed on regulated markets (except listed micro-enterprises). Organisations must not only disclose how sustainability issues impact them, but also how their activities impact society and the environment. Strengthening sustainability The European Commission’s Action Plan for Financing Sustainable Growth directly targets ‘strengthening sustainability disclosures and accounting for rule-making’ as one of 10 key focus areas. In tandem with the trend towards mandatory ESG reporting, more and more companies are choosing to disclose ESG information to satisfy stakeholder demands voluntarily. The CSRD obliges companies within the scope to report against common EU reporting standards adopted by the European Commission as delegated acts. Companies are likely to start reporting in 2024, based on FY 2023 information. Reporting considerations Companies will need to consider the following over the next several years. Timeline for implementation The timeline for the implementation of the standards and reporting is: FY 2023: first set of Sustainability Reporting Standards will be available by mid-2023 based on the draft standards published by the European Financial Reporting Advisory Group in November 2022; FY 2024: second set of Sustainability Reporting Standards will be available and EU Member States will adopt the EU directive; FY 2025: first reports due for the financial year 2024. Who does it apply to? The CSRD applies to all large companies governed by, or established in, the EU with: >250 employees and/or; >€40 million turnover and/or; >€20 million in total assets of listed companies. Small and medium listed companies get an extra three years to comply. What must be included? A dedicated section of the company’s management report must include the information necessary to understand its impacts as well as how sustainability matters affect its development, performance and position. Though the Non-financial Reporting Directive did not require auditing, the terms of the CSRD require sustainability reporting to be checked externally when the CSRD takes effect. Companies will need to seek limited assurance of sustainability information. This requirement is less extensive than that required for the financial audit statement but will, nonetheless, require external scrutiny. Companies must disclose information relating to intangibles (social, human and intellectual capital). Reporting should be in line with Sustainable Finance Disclosure Regulation (SFDR) and the EU Taxonomy Regulation. An entity will be exempt from the reporting requirements if the consolidated management report of a parent company includes the results of the company and its subsidiaries. Reporting This must be included in the management report. The bottom line Mandating standardised reporting provides for increased comparability in the public domain. This means that organisations can be held accountable by their stakeholders and, in turn, is likely to play a role in procurement processes. Brendan Ringrose is a partner with Whitney Moore LLP Law Firm

As the unsung heroes of the family unit, stay-at-home parents must be properly compensated for their work in the home with a stable retirement, says Carol Brick According to a survey conducted by Royal London Ireland in 2022, 88 percent of women believe that the role of the stay-at-home parent is undervalued or under-supported in Ireland. About 349,500 people in Ireland work as stay-at-home parents, with 94 percent being women, the survey found, highlighting a possible risk of poverty for those people upon retirement. Despite the invaluable work done by these individuals, more than eight in 10 agree that their role is undervalued or under-supported. According to the Royal London Ireland research, the annual cost to employ someone to do the household jobs usually completed by a stay-at-home parent would be an estimated €53,480. However, the survey participants estimated the potential ‘salary’ of the stay-at-home parent at an average of €28,460 per year. Those who give up work to look after a family, whether male or female, are the least likely to save for retirement. Stay-at-home mums are at the highest risk, as retirement savings are not on the agenda without an income. This is a significant concern as the state pension, after taking their years as a homemaker into account, will be approximately €12,000 per year. These individuals must consider financial protection and planning to ensure their family is financially secure, especially in the event of an unexpected death or illness. Long-term effects If stay-at-home parents in Ireland do not plan for retirement, they may face serious financial consequences in their later years. Without a steady income stream, they may struggle to cover their living expenses, healthcare costs and other essential needs. This can lead to a lower standard of living and reduced quality of life during retirement. Without a financial plan, they may have to rely on their adult children or social welfare. Furthermore, not planning for retirement can limit the options available to stay-at-home parents. They may be forced to work longer than they would like or take less-than-ideal jobs to make ends meet, limiting their ability to travel, pursue hobbies or support their families in other ways. Planning for retirement can help stay-at-home parents in Ireland achieve financial security and allow them to enjoy their later years. Lastly, not planning for retirement can affect their mental and physical health. Stay-at-home parents may experience higher stress levels, anxiety, and other adverse health outcomes without the financial resources to cover medical expenses or other healthcare needs. Planning for retirement can help stay-at-home parents in Ireland maintain their physical and mental health and enjoy a fulfilling and satisfying retirement. Society often undervalues or under-supports the role of stay-at-home parents, despite their invaluable contributions to their families and communities. I encourage individuals to prioritise financial planning and protection, no matter their employment status. Carol Brick is Managing Director of CWM Wealth Management and HerMoney.ie

At a time when companies are struggling with employee retention, internal networking is vital for individual and organisational growth, says Jean Evans When you open any newspaper or listen to broadcasts, podcasts or news these days, you are hit with reports of people leaving the workforce. Organisations are struggling to retain and recruit staff. This is further fuelled by negative media reports on the crises our society is currently facing, from housing shortages to energy prices. It is clear that something is simply not working. People are stressed and overwhelmed. They are feeling the pressure, they are time-stretched, and they don’t have enough balance in their lives. Organisations are unsure of how to respond, leading to managers who are ill-equipped to deal with the changes needed in the workplace.  There simply isn’t enough time to learn and understand everything in this working environment. Internal networking While there is no magic wand to solve the problem of workplace churn, helping people to understand what it means and how to connect with others can help. This is where internal networking comes in.  Organisations must make the time to coach and train employees on how to connect and learn about one another and grow to create a workplace community that supports them when they put their hand up for new projects, share ideas or need to overcome a challenge. Where there are genuine connections and support in an organisation there is psychological safety. This can help to create a happier workforce that is focused on reaching shared strategic goals. Organisational benefits There are benefits for organisations that take the time to facilitate internal networking: Knowledge sharing Internal networking can facilitate the sharing of knowledge, ideas and expertise among colleagues, which can lead to greater innovation, improved decision-making and better problem-solving. Career development Networking with colleagues can provide opportunities for career development, such as mentorship, job shadowing or exposure to new projects and initiatives. Improved communication Networking can enhance communication within an organisation by promoting open dialogue, encouraging feedback and creating a culture of transparency, trust and confidence. Increased job satisfaction Building relationships with colleagues can create a sense of community and belonging, which can improve job satisfaction, employee retention and overall well-being. Enhanced collaboration Networking can promote collaboration and teamwork, which can lead to increased productivity, better outcomes and greater job satisfaction. Professional growth Networking can provide exposure to different perspectives, experiences and approaches, which can help professionals broaden their knowledge and skills. Looking at company culture How internal networking manifests itself depends on the culture of a company. For it to work, everyone must be engaged and ready to buy into the powerful notion that having connections is crucial to any organisation’s success. Jean Evans is a Networking Architect and Founder at NetworkMe

The Work Life Balance and Miscellaneous Provisions Act 2023 (Act) has been signed into law. Moira Grassick outlines the Act’s key provisions and its implications for employers and employees Last month, the Work Life Balance and Miscellaneous Provisions Act 2023 (Act) was signed into law by President Michael D. Higgins. This new employment legislation will introduce several new statutory rights aimed at supporting a better work-life balance for employees and also supporting those with caring responsibilities. The Act also seeks to support employees who are victims of domestic violence through the introduction of a statutory paid leave entitlement of five days. New rights In summary, the Act introduces the following rights: the right to request remote working for all employees; the right to request flexible working for parents and carers; the right to breastfeeding breaks extended to two years from the date of the child’s birth; five days’ unpaid leave for medical care purposes for parents of children under 12 and carers; and five days’ paid leave for victims of domestic violence. The right to request remote work As all employees with more than six months of continuous service will soon have a right to request remote work, employers will need to plan how to manage these requests. The Workplace Relations Commission (WRC) is also developing a Code of Practice to provide further guidance for employers and employees on managing requests for remote working arrangements. An employer must respond to the request within four weeks. However, this timeframe may be extended to eight weeks if the employer is having difficulty assessing the workability of the request. While employers will be obliged to consider these requests under the new law, it should be remembered that there is no obligation to grant all requests. If employers refuse the request, the Act states they must provide a written notification to the employee confirming the reasons for the refusal. The WRC does not have jurisdiction to challenge the merits or the grounds of an employer’s decision to refuse a request for remote working. Potential impact The new rights to request flexible work for parents and carers, and remote work for all employees, are designed to promote a better work-life balance. While they represent a new development in employment law in Ireland, how these rights will operate in practice remains to be seen. Employers must develop policies for managing this type of request and prepare for negotiations with employees who want to alter their working patterns. Employers in industries that have developed remote work practices in recent years may face pressure to grant requests. If operations were largely unaffected by remote working arrangements brought in to deal with pandemic restrictions, it might be difficult to refuse a request for productivity or operational reasons. And with the jobs market remaining tight, employers who refuse requests risk losing valued employees to a competitor who does offer flexible or remote working options. Unpaid leave for medical purposes  The Act states that an employee is entitled to five days’ unpaid medical leave in a 12-month period to provide “significant care or support for a serious medical reason” for a person who is in a specified relationship with the employee, such as a spouse, civil partner, parent, sibling or person who resides in the same household as an employee. This leave is different to force majeure leave, which gives an employee three days in a 12-month period or five days in a 36-month period for an urgent family matter. Paid domestic violence leave  The Act introduces this new leave which provides for five days’ paid leave for victims of domestic violence to allow the affected employee to seek medical advice, legal representation and to engage with other specialist support services. Bespoke employment policies As it seems highly unlikely that all businesses will be able to roll out generic “one size fits all” policies to manage all these new employee rights, each company will need to tailor new policies to the specific needs of its operations. While employers should wait until the WRC Code of Practice is finalised before tailoring their remote work policies, it’s a good idea to begin preparing to update handbooks and policies to reflect these upcoming changes, making remote working more accessible for more employees. Moira Grassick is Chief Operating Officer at Peninsula

In today’s unpredictable business environment, organisations must invest in resilience to ensure they can withstand any disruption and quickly recover, writes Andy Banks  As Irish businesses grapple with a rapidly changing world, the challenges of geopolitical upheaval, soaring inflation and economic uncertainties have become ever more prevalent.   Added to this, businesses are facing the rising threat of cybercrime, supply chain challenges and the climate crisis.  To survive and thrive in this upheaval, Irish business leaders must be able to proactively anticipate and respond to disruption.  The key to success is resilience: the ability to navigate crises and the capacity to adapt and succeed in the face of disruption.   PwC’s Crisis and Resilience Survey 2023 delves into how organisations are directing their resources, efforts and investments toward building resilience to thrive in a state of permacrisis.  There are three ways organisations can embrace and invest in resilience to transform their operations in an era of constant disruption.  1. Integration: An integrated resilience programme is essential  It is no longer sufficient for organisations to operate in silos as they address today’s complex and interconnected risks. Both locally and globally, enterprises are moving towards an integrated approach to resilience.   They are centrally governing and aligning multiple resilience capabilities around what matters most to the business and embedding this programme into their operations and corporate culture.  2. Leadership: Thriving in a permacrisis means upskilling leaders and teams  Consistent with global trends, 33 percent of Irish respondents in the PwC survey said building a team with the right skills is a significant challenge in establishing a resilience programme. Fifty-seven percent of Irish organisations cite upskilling future leaders as one of the three most important elements of future-proofing resilience.  A successful resilience strategy and programme needs:  Executive sponsorship from the C-suite;  A senior leader with clear responsibility for the programme; and  A skilled team to drive the programme across the organisation.  3. Programme approach: Build operational resilience around what matters most  Organisations must build operational resilience and ensure that enterprise planning and preparation are part of a broader continuous cycle.   Irish organisations invest in teams to deliver on the resilience agenda, with 77 percent of respondents confirming at least one dedicated resource.   As more organisations integrate their resilience programmes, many firms worldwide are adopting the core principles of an operational resilience (OpRes) approach, focusing on protecting what matters most and prioritising investment based on what’s critical to their organisation and stakeholders.   This allows organisations to manage risks with high reliability and drive efficiency.  Those who have moved to an integrated resilience programme are significantly ahead in many of the core elements of OpRes: building a robust corporate immune system where an organisation can adapt, flex and grow stronger.  Technology-powered resilience   Distributed data, systems, processes and operational silos mean organisations struggle to obtain a complete view of their resilience, only identifying gaps when disruption hits.   The traditional approach to managing resilience is no longer working – simply checking off compliance with regulations does not deliver resilience.   Too many organisations miss opportunities to identify and rectify vulnerabilities before an incident occurs. What are the vulnerabilities you can and can’t live with? It’s time for a new approach.  Business leaders understand the need to underpin resilience strategies with technology that can intelligently aggregate data from across a business to provide an integrated, insight-driven single source of truth and greater agility in times of crisis.   Business leaders also want to use technology to create a living resilience programme they can continually test and evolve.  Andy Banks is Risk Assurance Solutions Partner at PwC 

Inclusive hiring has become vital to modern business practices as organisations strive to create a more diverse and equitable workplace. Fergal McPhillips argues that inclusive hiring is not just about a diverse organisation but about attracting and retaining top talent and creating an environment where employees’ unique perspectives are valued. Inclusive hiring is the act of seeking out and hiring employees who are diverse in their perspectives, backgrounds and thought processes. Generally speaking, it’s about recruiting people from underrepresented groups, such as people with disabilities, racial minorities and individuals from other marginalised groups. Organisations must overcome unconscious bias in their hiring and remain open to diversity in all forms, whether the diversity of thought, cultural background or embracing differences in gender expression. An organisation must recognise that different ways of thinking, experiences and skills can benefit it. Benefits Inclusive hiring is increasingly becoming a priority for organisations in today’s diverse business landscape. According to a study by McKinsey, companies with diverse workforces outperform their less diverse counterparts in terms of financial performance, with ethnically diverse companies being 36 percent more profitable than those who are not as diverse. Furthermore, an inclusive hiring process is a more equitable hiring process and can help reduce the risk of discrimination and legal liabilities. A report by Glassdoor found that 80 percent of jobseekers between the ages of 18 and 35 consider diversity an important factor when considering job offers. Inclusive hiring is essential for organisations that seek to create a diverse, equitable and inclusive workplace culture that can attract and retain top talent and drive long-term business success. It can also help improve employee engagement, satisfaction and morale while making a workplace more diverse, welcoming and productive. Creating an inclusive culture To engage in inclusive hiring and ensure it sticks, you must develop an inclusive company culture that truly embraces and celebrates the many differences that make people brilliant. Creating a diverse working environment is a process, not an event. It won’t happen overnight. It takes time and commitment. Your organisation must be ready to invest in the process, willing to hear new ideas, prepared to change its behaviours and encourage employees to change theirs too. Creating an inclusive company culture is critical in attracting and retaining diverse talent and driving long-term business success. This includes investing in diversity and inclusion training for all employees, ensuring equitable policies and practices, and establishing employee resource groups to provide a sense of belonging and community for underrepresented groups. In addition, fostering an open and transparent communication culture is important, where employees feel safe to voice their opinions and concerns without fear of retribution. This can be achieved through regular town hall meetings, one-on-one meetings with managers and regular employee engagement surveys. Ultimately, creating an inclusive company culture requires a commitment from leadership to prioritise diversity and inclusion in all aspects of the business and to take proactive steps to create a workplace where all employees feel valued, respected and supported. Fergal McPhillips is a Team Leader of Accounting & Finance Recruitment at Morgan McKinley

The European Union’s recently implemented Pay Transparency Directive is set to transform the way companies across the EU approach pay equity and transparency. Doone O’Doherty explores steps organisations should take to implement the Directive. At the end of March 2023, the European Parliament adopted the EU Pay Transparency Directive. This will go through the final formalisation steps, including Council adoption, and enter into force 20 days after publication in the EU Official Journal.  EU Member States will be required to transpose the Directive into national legislation within three years – very likely in 2026.  Given the proposed legislation’s complexity and implications, organisations should start preparing now to ensure a smooth transition from a legal, operational and strategic perspective. Under the Directive, greater transparency will be required in four critical areas.  Gender pay gap reporting and equal pay Organisations above a certain employee threshold will be required to publish gender pay gap figures externally.  Where a pay gap of five percent or more is found in any category of worker and other criteria are not met, a joint pay assessment must also be completed. Recruitment   Organisations will be required to provide information on pay (e.g. pay bandings) as part of the recruitment process, such as adding pay ranges to job adverts or sharing this information with applicants. They will no longer be able to ask candidates about current pay to determine offers.  Pay approach and philosophy  Employers with more than 50 workers must provide workers with information on the criteria used to determine pay and pay progression. Average pay levels Workers will have the right to request information on the average pay level of workers doing similar work to them, broken down by sex. This must be provided within two months of the request.   To whom does this apply? While local implementation may vary, the Directive suggests that the requirements listed above may apply not only to employees but also apply to other worker types (e.g. contractors and gig economy workers).  Key steps to take Given the significance of the measures to be introduced, organisations must identify their biggest risks and opportunities and prioritise activities. This will allow for developing an effective change plan to ensure readiness for the upcoming legislation and wider transparency requirements.  For some organisations, the impact of the EU Pay Transparency Directive will be significant, potentially leading to the widespread transformation of critical people policies and activities. Successful change (including impacted systems and processes) is a multi-year programme.   It will be critical for companies to: Understand the impact: Identify key stakeholders and gain a high-level understanding of key risks and opportunities for your organisation. Provide an initial briefing to identified stakeholders on the Directive and its implications for your organisation.  Assess organisational readiness: Deep dive into the key risks and opportunities identified through interviews and document reviews. Complete a readiness assessment to prioritise activities with stakeholders. Develop an implementation plan: Develop a high-level implementation plan to embed change based on agreed priorities, risks and opportunities.  Doone O’Doherty is Partner of People & Organisation at PwC 

With stakeholders pulling in different directions and competing for your time, staying focused on your daily goals can be difficult. Moira Dunne explains how to manage stakeholders trying to take time away from your scheduled tasks. Stakeholders are the key people you interact with in your role. It is essential to maintain good relationships with them, support and be responsive to them, but this can impact your work plan and put you in a tight spot. We feel pressure to respond immediately and don’t want to upset them by saying “no” to a request, even if it is not urgent. Furthermore, the stakeholder may be a senior figure, so you feel obliged to acquiesce, even if you don’t have time. As a result, you prioritise the new request but sacrifice important deliverables and your own personal time while letting others down. Overall, it can feel like the workday is out of control, leading to stress and anxiety. Here are four tips on managing requests from stakeholders. 1. Take control To help control your time, be clear about what you need to get done each week and block time in your diary for this priority work. As new requests crop up, you can assess which is the higher priority task. You may need to do both, but you will not drop the planned work without rescheduling it first. A baseline plan gives you the confidence to discuss your response regarding the work needed, and not having a plan in place makes it harder to do that. 2. Manage your response time When responding to stakeholders, the key is to say yes on your own terms. For example: Ask when they need the task completed; Inform them when you can work on the task; and Negotiate a time that suits you both – be as flexible as possible. As a result, you don’t automatically drop your planned work but still support the stakeholder as best you can. 3. Review urgent requests Urgent requests generally fall into two categories: things that couldn’t be anticipated; and things that were not done in time and became urgent. Many people don’t plan ahead. You can’t change their work style but can change your interaction with them. Take a few minutes on a Friday afternoon to check in with stakeholders who often have last-minute requests. Tell them you are planning your week and to send on any requests for the next one before close of business so it can be scheduled in. This prompts them to think ahead about requests instead of waiting until the last minute while subtly telling them that they should let you know in advance if they want time in your diary. 4. Agree expectations If starting a new relationship with stakeholders, set expectations with them beforehand. Find out what the service level agreement says and ask what timing will work best for them. Agree the response time for general queries (while acknowledging that genuinely urgent situations can be handled differently). Once agreed upon, it is easier to stick to these response times in the cut and thrust of a busy day. 5. Drop the guilt Do not feel guilty if a task from a stakeholder does not fit into your schedule. If you can’t do something, there will be a good reason, such as not qualifying as a higher priority than your current work or being within your role’s remit. Moira Dunne is the founder and director of beproductive.ie

Jillian O’Sullivan sheds light on the new Irish law mandating identity verification for company directors and its potential implications for businesses The Companies (Corporate Enforcement Authority) Act 2021 contains a provision requiring the directors of Irish companies to provide their Personal Public Service (PPS) number on certain documents submitted to the Companies Registration Office (CRO) to allow for verification of a director’s identity.  The CRO has announced that this requirement will be effective from 23 April 2023. Application All directors of Irish companies will be required to provide their PPS number to the CRO when filing the following forms:  Form A1 – Incorporation application; Form B1 – Annual return; Form B10 – Change of company officers or their particulars; and Form B69 – Notice of cessation of company officer where a company has failed to file the notice. PPS number verification The CRO will verify the director’s first name, surname, date of birth and PPS number submitted electronically with the data held by the Department of Social Protection (DSP). In order for there to be a match between the two sets of data, the first name and surname submitted to the CRO must exactly match the names associated with that PPS number in the DSP database. The CRO has confirmed that it reserves the right to reject any submission where there are discrepancies between the information submitted and the information held by the DSP. PPS retention When the PPS number filed with the CRO has been validated, it will be retained securely in an irreversible hashed/encrypted format and stored securely. PPS numbers will not be accessible by any employee of the CRO or any other party, and they will never be shared with any third party. The CRO will then match the hashed/encrypted version of the PPS numbers to future filings, avoiding duplication of director records. Directors with no PPS number If a director does not have an Irish PPS number, they must apply for a Verified Identity Number (VIN) by completing a Form VIF (Declaration as to Verification of Identity) and filing it with the CRO. The Form VIF must state the director’s name, date of birth, nationality, and address, and it must be sworn in the presence of a notary in the director’s home country. Digital or electronic signatures cannot be accepted on Form VIF. Once the Form VIF has been processed successfully, the CRO will issue a VIN to the director and the presenter of the VIF. This must be used for all future CRO filings for any company to which that director is appointed. If a director does not have a PPS number but has previously been issued a Register of Beneficial Ownership (RBO) number for filings made with the Central Registrar of Beneficial Owners, then the director can use their RBO number as their VIN for CRO filings.   The VIF will not be publicly available on the CRO searching system. Non-compliance If any person fails to comply with this new requirement, they shall be guilty of a category four offence resulting in a fine of €5,000. It will also mean a company cannot complete their filings and could suffer late filing penalties and possible loss of audit exemption.  Next steps If they have not already done so, now is the time for companies to start collating their directors’ PPS numbers or RBO numbers and establish whether any of their directors will need to apply for a VIN. To avoid any unnecessary delays with filings, directors and their company secretarial providers should review information about them held by the CRO (e.g. first name and surname) and identify any inconsistencies between such information and the data stored by the DSP. Jillian O’Sullivan is Partner of Corporate Compliance at Grant Thornton

Accountants are discovering new ways to use AI for marketing purposes. Maryrose Lyons explains how they can leverage generative AI to create business content As discussed in my last article, many accountants have already taken a special interest in using generative AI, such as ChatGPT, to create opportunities for marketing growth. If you’re not already leveraging this technology within your organisation, here are six ways accountants can use this technology in their marketing efforts. 1. Market research and strategy ChatGPT can be used to identify emerging market segments and identify opportunities, potentially helping accountants to tailor their services and marketing strategies accordingly.  It can assist in developing comprehensive marketing strategies, ensuring that all marketing efforts are focused and effective. 2. Content creation Generative AI can be used to support content production, such as blog posts, articles and social media updates. These can be done in minutes, allowing an organisation to focus on clients. 3. Social media ChatGPT can be used for strategies, engagement and content production at scale for social media sites such as LinkedIn and Twitter, increasing engagement with potential clients and connections. 4. Email Email marketing can be elevated through more personalised email campaigns and client updates that do a better job of helping busy accountants stay connected with existing clients and generate new leads. 5. Marketing assets Brochures, flyers and client presentations can be made more visually engaging by using apps like Midjourney to create high-quality images based on text commands. 6. Keyword research Identifying relevant keywords and optimising website content for search engines is an important part of marketing. Accountants can leverage generative AI apps to help create content that search engines will pick up. Generative AI is an innovative tool that could help you to streamline mundane tasks while freeing up resources for more creative and complex work. Maryrose Lyons is the founder of Brightspark. Brightspark is offering a Digital Marketing with ChatGPT course on 27 April 2023

A recent survey suggests that Irish CFOs are placing less importance on ESG considerations than they did a year ago, despite growing stakeholder interest, explains Derarca Dennis Ireland’s financial leaders are optimistic about the future despite current challenges, identifying investment in talent as one of their top priorities, the EY Ireland CFO Survey 2023 has found. Interest in environmental, social and governance (ESG) issues has, however, faded over the past year and this is a cause for concern. Just six percent of the 151 finance leaders surveyed by EY Ireland cited increasing the sophistication of non-financial reporting as one of their top strategic priorities for the five years ahead, down from 15 percent in the 2022 survey. Only 10 percent saw opportunities in sustainability and decarbonisation as a priority for driving growth in the year ahead. It is essential to view these findings in the context of the timing of both surveys, however. The 2022 survey took place before the Russian invasion of Ukraine at a time when the world was emerging from COVID-19. There was a decidedly optimistic view of economic prospects and a growing focus on the need to tackle the climate emergency. Conditions in early 2023 could hardly be more different. Spiralling energy costs, inflation at levels not seen for decades, rising interest rates and continuing geopolitical volatility have combined to focus business minds on more immediate survival and growth concerns. ESG viewed as compliance The overall results of this year's EY Ireland CFO Survey suggests that ESG is still regarded as a compliance and regulatory issue rather than as a source of commercial opportunity. Forty-three percent of our respondents pointed to sustainability regulatory compliance as a key focus for the next two years, while just two percent identified non-financial and ESG reporting as a priority for the same period. What is concerning is that organisations not covered by regulations (current or imminent) could face difficulties winning new business or maintaining relationships with existing customers. Organisations that are covered by the regulations, and that have set decarbonisation targets, increasingly require their supply chains to meet the same standards, with potentially severe consequences for failing to prepare adequately, so collaboration across the supply chain is essential. Financial and training implications Organisations raising finance already have to answer questions about sustainability performance and social impact from banks, private equity houses and other potential investors. It is, therefore, imperative to make ESG/non-financial reporting an integral part of their core strategy. There was also a degree of discordance in the findings. When talking about the evolving role of the CFO, 54 percent of respondents claimed their role now includes a greater focus on ESG and non-financial reporting, and 60 percent described their non-financial/ESG performance monitoring and reporting capability as basic or not mature. Despite this, attaining non-financial/ESG reporting skills was identified as a priority for the next five years by just 15 percent of the financial leaders surveyed. Lack of leadership buy-in A lack of endorsement from senior leadership and a paucity of expertise and experience within the finance team were cited as key barriers to more effective ESG reporting at an organisational level. Some 30 percent of the finance leaders surveyed said it was not considered a priority among leadership, which may lead to unaddressed ESG risks in the future. While the current macroeconomic environment and business climate can justify some diversion of attention away from the ESG agenda, the fact remains that it cannot be divorced from the broader needs of the business. Indeed, ignoring ESG will present significant risks in an environment where a business’s ESG credentials and sustainability performance will increasingly become key competitive differentiators. Future-focused CFOs need to be aware of the importance of the ESG ecosystem and mindful of the environment in which they operate, which not only includes Ireland but also the European Union. They must ramp up resource allocation to enable their finance teams to meet rapidly growing ESG and non-financial reporting requirements. Failure to take these steps could see businesses falling behind those competitors that are addressing the ESG agenda today. You can read the full report at EY.ie. Derarca Dennis is Assurance Partner at EY Ireland

Julia Rowan answers your management, leadership and team development questions I recently moved into the public sector and am leading a department of 45 staff led by seven long-serving managers. The department is well-structured, and the segregation of duties is well-documented. However, motivating the team of managers is proving difficult. The word ‘change’ is a no-go area. I’m finding one-to-one meetings work, but in group settings, there is very little interaction.  A. There is a lot going on here, and I wonder if your team senses your frustration. It can be scary for a team when an ‘outsider’ comes in to lead them, so I would take a long-term view—going slowly, supporting your team, praising what is working, and building trust.   Read between the lines. Your one-to-ones are working, but group settings are not. What feedback are you getting here?   Use the one-to-ones to discuss what your managers want from the team meeting. Then design these very carefully.  Try to meet in person. Start each meeting with a simple ‘check-in’ question, something that connects with the managers’ real world. This could be, ‘what do you want from today’s meeting?’, ‘what’s your biggest challenge at the moment?’, or ‘what’s your long-term focus?’.  Perhaps you could give each manager five minutes to update colleagues on their work. You may find some common themes coming out of the one-to-ones that could be brought to the team meeting: problems that could be aired and shared or, even better, progress made. It could be useful to suggest a strategy session looking at what is working well and how the team can build on this, as well as current challenges. Get curious about your team’s successes and what it has achieved.  The team would need to get a clear sense that you notice what is working and are not just ‘ticking the box’ so that you can move on to the problem areas.  All of your managers have good-sized teams and people managers always need support. Be explicit and intentional about this. Building trust with you will help them to explore and accept change.  My new boss joined recently from another organisation. I applied for the promotion and did not get the role. I’m okay with that and I like my new boss. He is getting his feet under the table and beginning to make suggestions about what we should do. Often, he suggests things that we have tried before (and which didn’t work) or he overlooks important issues. I don’t know how to disagree or make suggestions without sounding negative, closed or jealous. A. This is a great example of where the feedback we want to give (like “we tried that and it didn’t work”) could sound negative, but where your intention or concern is positive (i.e. to ensure that we don’t waste time).   Be positive. Voice the concern. Share the feedback. For example, “I think revising our service offering is a great idea. I’m not sure whether you are aware that we tried that before and our clients pushed back. Would it be useful if I talked you through what happened?”.   Julia Rowan is Principal Consultant at Performance Matters Ltd, a leadership and  team development consultancy. To send a question to Julia, email julia@performancematters.ie

A shared passion for business and sustainability has helped David and Marguerite Lawlor make a success of their growing venture Watermark Coffee Husband and wife David and Marguerite Lawlor own and run Watermark Coffee, which supplies and services coffee machines for corporate and hospitality clients and sells sustainable coffee brands Woodland Coffee and Green Ocean Coffee wholesale and online. The Lawlors are both Chartered Accountants who trained with KPMG and employ 19 people in Dublin. Here, they tell Accountancy Ireland about their experience running a business. You acquired Watermark Coffee in 2007. What prompted you to go into business together?  Marguerite: During my time with KPMG, I gained valuable exposure to the financial services sector, and then I moved into life assurance. When we came across Watermark, it seemed like the business could have potential. Even though we had a small child at the time, we weighed it all up and decided to go for it. We negotiated a Put and Call option to purchase Watermark Coffee from the previous owners in November 2005. This involved David starting as Managing Director with the option to purchase the business with an agreed price for assets, goodwill, and a formula to allow for any further movement in net assets.  At the time, the business employed six people selling and servicing coffee equipment. Just three customers accounted for 80 percent of sales. The option was for a five-year period, but allowed us to walk away with no contractual commitment.  David: I’ve always enjoyed the cut and thrust of business. My father was one of the founding partners of JPA Brenson Lawlor in Dublin and my brother, Ian Lawlor, is the Managing Partner there now.  I realised early on that being a Chartered Accountant gives you a great edge in business and instils confidence and knowledge at a young age.  I received fantastic and varied training with KPMG and worked with really clever people, but like Marguerite, my heart leaned towards a career in business, rather than business advisory.  I worked for a few years in industry before starting to look for opportunities to run our own business. We started talking to the previous owners of Watermark two years before I seriously got into talks to buy it.  What was the process of acquiring an existing business like? David: It was challenging. There were numerous operational, contractual, and sales-related challenges. With any small business, there is also a concentration of technical knowledge, contacts, and know-how.  We couldn’t justify purchasing the business in a normal share transfer arrangement. There were just too many risks.  Instead, we proposed the Put and Call option, which allowed us to get a start on addressing any challenges while working on a strategic way forward.  One year later, in early 2007, we exercised the option and acquired Watermark Coffee.  Would we recommend this method of acquiring a business now? In a word, yes.  Buying an existing company can save you a lot of time setting up basic business structures—from running stock management systems to developing terms and conditions of employment and everything in between.  There are significant risks involved in acquiring a small business, however, so it’s really important to structure an agreement that helps to mitigate as many as possible.  How has Watermark evolved in the years since?  David: The financial crisis hit just after we bought the business. Eight months in, the subprime mortgage crisis was taking hold in Europe and we had acquired a business dependant on finance being available to our customers.  Our response was to keep reinventing ourselves. We changed the way we engaged with the market. Rather than just selling equipment, which is fine if there is available credit, we started renting our machines in 2011. We were only selling commercial coffee equipment at that time and we had a small group of customers, so we tried to broaden our customer base and access new markets, such as the UK, and became a distributor for commercial Gaggia coffee machines over there in 2009.  That was a fantastic opportunity as there wasn’t a lot happening in Ireland at the time, but it did involve setting up a UK business from scratch.  After several attempts in 2011, we managed to successfully launch an equipment rental option in the Irish market, which was still deeply impacted by the lack of available credit. This increased our relevance in the market and the phone started ringing a bit more.  By 2014, we launched our first coffee range. It was a great supplementary product to our coffee equipment and it allowed us to maintain a much closer relationship with our customers. Woodland Coffee launched in 2020. A sustainably sourced coffee, Woodland funds tree-planting on a 30-acre site we purchased near Pallasgreen in Limerick.  Our customers for this speciality grade arabica coffee include Virgin Media, Docusign and Twitter. Buoyed by our success with Woodland Coffee, we decided to launch our second range, Green Ocean, this year. It is our most ambitious endeavour yet. Tell us about the sustainable aspects of your business? David: Green Ocean Coffee went on sale in January with three speciality grade arabica coffees, including single origin and blended coffees.  For every 1kg of Green Ocean Coffee sold, one square metre of seabed in Clew Bay, Co. Mayo, is being restored.  We commenced this restoration project last July with Clew Bay Oyster Co-Op. We are reseeding the ancient oyster and seagrass beds in special areas of conservation in Clew Bay.    Seagrass sequesters carbon 35 times faster than the same area of rainforest. Oysters also sequester carbon, but filter the water, enabling sea grass and other marine plants and fish to thrive.  As divers and sailors ourselves, we have witnessed enormous change to the marine environment over the past 20 years and sustainability is at the heart of everything we do.  The projects we support have to be authentic, worthwhile, local, and transparent. When it comes to climate action, authenticity trumps everything else. What has your strategy for the business been to date? David: Our strategy has been to stay relevant to the market. We are never going to be the biggest.  Globalisation will ensure that others take that spot, but we can be one of the best and, with Green Ocean Coffee, we can involve our customers in our restoration activities.  This can be as basic as providing simple updates on their contribution to the restoration, hosting talks by the marine biologists working with us, or organising site visits to Clew Bay—and, if they are really interested, a scuba dive over the reefs! We want to make the restoration work real and fun for our customers and their staff. Green Ocean Coffee is about the positive steps we can take and how that makes a meaningful difference.  How do you divide up the responsibilities involved in running the business? Marguerite: We both have very different skill sets. David works on the sales and creative side of the business as he loves talking. I take the lead on operations and finance—basically, making sure that we are meeting our promises to our customers.  We have a great operational team. After our engineers go on the road to service and install machines, I will ring each customer to ask about their experience. We get a lot of feedback that way.  I also oversee the financial side of the business, which allows David to focus more on sales, marketing, and creativity.  I’ve found that my training as a Chartered Accountant has really helped me to set up and manage processes for new staff as we’ve expanded and to deliver on our promises to customers. We really try to keep business talk to the office and make decisions with our staff rather than over the dinner table and we meet with our sales team and operational managers every two weeks to discuss how we are doing.  The coffee business is very competitive and fast-moving, so fast effective communication is a real strength in our customer service delivery.  Tell us about the biggest business lessons you have learned so far? David: First, if I see something wrong, I try to act upon it immediately, even if it is painful. If I’m not sure what to do there and then, I sleep on it and act on it the following day.  Second, I’ve learned the importance of continually reinventing what our business means. This is really necessary, but also a lot of fun.  Third, discomfort comes with the job spec. As soon as I realised this, I become much happier co-running the business. Marguerite: Keep in touch with your customers and listen to their feedback. Customer service is at the heart of every business and every role within our business is crucial.  It was open discussion with our team that led to the development of Woodland Coffee and Green Ocean Coffee.  Do you think there is a specific mindset you need to run a business successfully? David: You have to be incredibly enthusiastic and driven to be self-employed. This mindset is contagious, and customers will get it and want to be involved, so it really works.  Running your own business is also a little ‘all or nothing’. You need to throw yourself in 100 percent. Once you have a genuine interest in what you’re doing and you do it with enthusiasm, entrepreneurship will come easily.  What are your plans for Watermark Coffee in 2023 and beyond? David: We want to restore 180 more hectares of seabed in Clew Bay by getting as many like-minded businesses as possible to partner with Green Ocean Coffee in the year ahead. After that, I’m sure we’ll find another couple of hundred hectares of seabed somewhere else!