Our Chartered Star 2023 winner Peter Gillen tells us about his work helping companies to reach their sustainability goals and gives us his take on sustainable finance  Peter Gillen, a sustainability manager in Grant Thornton’s Financial Services Advisory Department, was recently named Chartered Star 2023, an annual designation recognising outstanding work in support of the UN Sustainable Development Goals (SDGs).   Run in partnership with One Young World and Chartered Accountants Worldwide, the aim of the annual Chartered Star competition is to celebrate the difference-makers in the profession who are helping to combat the climate crisis by bringing real, positive change to their workplaces and communities.  A graduate of Trinity College Dublin, Gillen grew up in Dundrum and began his career training with PwC before his passion for sustainability led him to join the Sustainability Team at Grant Thornton in 2021. As Chartered Star 2023, Gillen will attend One Young World Summit, representing Chartered Accountants Ireland and Chartered Accountants Worldwide, in Belfast in October. Here, he tells Accountancy Ireland about his interest in sustainability and gives us his take on ongoing developments in sustainable finance globally. Tell us about your decision to become a Chartered Accountant? What attracted you to the profession? When I was younger, particularly in the lead-up to the CAO application process in sixth year, family and friends told me accountancy was one of those qualifications that would allow me to work in any sector anywhere in the world. This has come to pass in my career so far as I’ve had the opportunity to work in Europe and the US as well as here in Ireland. Travel, in general, is one of the best ways I have found in my own life to learn from others. That’s why attending One Young World Summit later this year is so exciting to me. There will be so many people from many different countries, and we will have the opportunity to learn from both our shared experiences and different perspectives. What is it that initially sparked your interest in sustainability? I’ve always had an interest in sustainability and was frustrated by the slow pace of progress in the last decade or so. During the pandemic, when everyone had more time to reflect, I reconsidered the direction of my career and decided I would try to merge my training in financial services with my passion for sustainability. It was really about finding ways to use my knowledge to bring about real change and help companies on their sustainability journey. Chartered Accountants in general are uniquely placed to be right at the heart of sustainability discussions, and to deliver concrete plans to transition to a greener economy. There isn’t a medium- to large-sized organisation in the world that doesn’t employ a Chartered Accountant and we are uniquely placed to support ESG efforts, because of our problem-solving and analytical skill sets, our ability to take a step back and see the bigger picture, and lastly being able to apply our learnings from financial reporting to the impending sustainability reporting requirements, which will be applicable to companies over the next few years. What do you see as the greatest sustainability-related threats and challenges of our time? In terms of threats, it’s the classic, “the wants of the few outweigh the needs of the many”. Those in power – the few – often have self-interest in mind and their actions can have a disproportionate impact on others – the many. Those who have the power to influence real change are sometimes reluctant to do so. A classic example here is the large oil companies, or sometimes political leaders. Chartered Accountants working in leadership positions in large corporations really do have an important role to play in leading the way and convincing their stakeholders to tackle the climate crisis, not just for the planet but also for their companies’ long-term viability. For me, it comes down to collaboration, both nationally and internationally. Humankind is the single greatest determinant of the fate of our planet. We have the power to save our planet from becoming an uninhabitable place.  The challenge is trying to unite a large group to focus on one shared goal. History has shown us how difficult this can be, but also that it is possible and that it is often at times of catastrophic crisis that we unite. One example is the European Union, which was born in the aftermath of World War II. I’m confident that this time we can unite before it’s too late and introduce sufficient measures to address the issue. What is your take on current progress on Ireland’s Climate Action Plan? I think we have made a lot of progress, but we still have a long, long way to go. There are challenges but there is also immense opportunity for a country like Ireland. In particular, we have a unique opportunity to harness our coastline for the purposes of renewable energy – wind and wave, for example – and become a net exporter of energy instead of relying on imported fossil fuel-based energy sources. Reaching Ireland’s climate targets isn’t just about government action, though. Every single person has a role to play. For example, we have all become too reliant on convenience and this mindset needs to change. We need to learn to repair the goods we have where we can, instead of automatically replacing them – thinking differently about the lifespan of the items we own and the waste we generate. Tell us about Grant Thornton’s sustainability team and your role in it. I am a sustainability manager within our Financial Services Advisory Department. Our team helps our clients navigate all of the new environmental, social and governance (ESG) rules and regulations the EU and other regulatory bodies are bringing out. The world has really woken up to the climate crisis, so our work is evolving on a daily basis as legislators and regulators work to promote the transition to a greener economy. We help our clients to understand these requirements and the roadmap they need to put in place to meet them. My biggest career goal is to continue to help companies to support the UN SDGs, primarily by supporting SDG 13 Climate Action, because, for me, climate change is, without a doubt, the biggest challenge of our time. What do you think of the progress made by the European Commission thus far in progressing the Corporate Sustainability Reporting Directive? I’m optimistic about the progress they have made so far. The European Financial Reporting Advisory Group (EFRAG), the European body drafting these standards, delivered their first set of draft standards to the European Commission last November. In order to ensure companies can implement these new standards, Mairead McGuinness, European Commissioner for Financial Stability, Financial Services and the Capital Markets Union, has asked EFRAG to prioritise efforts on capacity-building, basically providing the relevant companies with a support function to help them implement the standards. As a result, EFRAG is pausing the roll-out of sector-specific standards for now, which I can understand given the circumstances. It’s important that companies are given sufficient support so that they may implement the sector-agnostic standards appropriately before moving forward with the sector-specific standards. What does it mean to you to be named Chartered Star 2023? It was an honour to win it and something I wouldn’t have thought possible all those years ago when I started my career in accountancy. The list of past winners is so impressive. To be chosen this year is a privilege and I have a responsibility as Chartered Star 2023 to continue the high standard in everything I do. Ultimately, I hope to continue to work towards the achievement of the UN’s SDGs for many years to come both in my personal life and through my career.

With the concept of a four-day working week gaining traction, three members of Chartered Accountants Ireland give us their take on the potential pros and cons of working fewer hours as standard in the future Kerri O’Connell Principal  Obvio Tax Services The four-day work week is an idea whose time has come! We are all aware that we are living through an era of great societal change, with many people questioning their lifestyle, their desire to buy more ‘stuff’ and the impact all of this has on the natural world around us.  The arrival of more advanced Artificial Intelligence is also likely to have a huge impact on our working lives. From a business perspective, many sectors are struggling to recruit and retain staff. The pressure is on in many aspects of the service industry, including professional, medical, construction and hospitality, and we are all aware of shortages of certain foods, medicines, etc. An economic ‘growth at all costs’ model, and accelerating expectations of ‘always available’ goods and services, create pressures that are doing none of us any good. Neither is a working week model that requires people to work on all of the days during which the services they require are accessible. Consider that the five-day working week (itself only 100 years old) was a sea change from the previously standard six-day week and, at the time, regarded as a great upheaval. That change bedded in over time, just as a four-day working week will too. The opportunity for parents to spend more time with children, for people to have more time available for caring obligations, or volunteer for a social/charitable organisation, is not just a ‘nice to have’ – it would bring fundamental benefits to our society and our environment. Many of us feel very resistant to change and only make a change when we are forced or pressurised to do so. If the past three years have taught us anything, however, it is that we are all more adaptable than we think. Shaun McGlade Managing Director SMCG Ltd. There has recently been a major shift in the perception of a four-day working week, which is now starting to gain real traction as an exciting workplace policy.    At its core, the paradox of shortening working hours for no less pay is in stark contrast to the dominant burnout culture of past decades, where working more was viewed as working better. Pilot schemes trialling the effectiveness of the four-day working week have yielded positive results. The largest to date was carried out last year in the UK by 4 Day Week Global, in partnership with Autonomy, an independent research organisation, the University of Cambridge and Boston College. Sixty-one companies employing 2,900 people took part in the UK’s Four-Day Week Pilot between June and December 2022. More than 92 percent opted to continue with a four-day working week after the six-month study concluded. With many people having adapted to flexible working following the pandemic, and a greater focus on work-life balance, there is a growing need for businesses to think differently about how they operate. A four-day working week could give some a competitive edge in the war for talent.  One of the most interesting findings of The UK’s Four-Day Week Pilot was that, among the 61 participating companies, revenue remained broadly the same over the course of the six-month trial, rising by 1.4 percent on average, weighted by company size.  When compared with a similar period from previous years, participants reported an average 35 percent revenue rise. So, while some employers are sceptical about the potential benefits of a four-day working week, my view is that it holds numerous potential benefits. These benefits range from a competitive edge for employers in the employment market, to higher staff retention, improved well-being, lower absenteeism, less burnout and reduced childcare costs for employees. Teresa Campbell Partner FPM  Around the world, interest in the potential benefits of a four-day working week is on the rise as employers and employees look for ways to improve well-being, enhance organisational performance and reduce the adverse impact of working life on society and the environment.  It is these positive outcomes that could make the four-day work week popular among employers in the future, so I think it is likely that we will see it become increasingly common – including in SMEs and accountancy practices – provided it is introduced in ways that do not adversely affect customer/client service.  In our own organisation, all of our team are actively encouraged to think about how we structure each working day.  We want our people to enjoy a healthy work-life balance, develop their careers and contribute to society in a meaningful way. We support flexible working and have measures in place to ensure that this does not disrupt our client services.  We are largely laptop-led, with a ‘work anywhere, anytime’ culture. We hold monthly virtual team gatherings and have developed and implemented a hybrid and flexible working policy, which piloted a four-day working week. More than 10 percent of our team avail of this option and our people say that the flexibility has changed their quality of life.  This is in addition to the over 22 percent who are working part-time, with the remainder either finishing at 1pm on a Friday or working the standard working week.     Our strategy has enabled some team members to continue to work while travelling internationally, and has also facilitated higher levels of female participation in our leadership teams.    One of the main factors for the success of our flexible working policies is that they enhance job satisfaction and encourage autonomy. Our experience is that team members both appreciate flexible working and are themselves very willing to be flexible, stepping up where necessary to meet urgent client demands.  Overall, it is a two-way process with everyone committed to enhancing, rather than diluting, our clients’ experience. 

Ross O’Connor, CFO with aircraft leasing company Avolon, talks us through the career path that took him from practice to a high-flying career in international aviation Originally from Ballinrobe in County Mayo, Ross O’Connor studied at Trinity College Dublin and qualified as a Chartered Accountant while working with Deloitte in Ireland. After joining Avolon in 2011 as a business analyst, he rose through the ranks at the aircraft leasing company to become Chief Financial Officer. Here, O’Connor tells Accountancy Ireland about the factors that prompted his move from practice to industry and his experiences in a niche sector with international reach. Tell us about your career starting out and how and why you became a Chartered Accountant? I studied Management Science and Information Systems at Trinity College Dublin and then joined the CFO Services Group at Deloitte as an analyst, eventually becoming a senior consultant.  By the time I left six years later, I’d worked across a pretty broad range of projects in the public and private sector and knew I wanted to move into industry, so I could really get to know and progress my career in a specific sector as opposed to working across a range of sectors. I had qualified as a Chartered Accountant as well by that stage, which gave me a structured qualification I felt I could rely on in any professional environment. Why did you decide to move into the aircraft leasing sector?  I didn’t know a whole lot about the sector at that stage, to be honest, but the more I learned about it, the more it appealed to me.  The sector emerged in Ireland in the 1970s and there is now a wealth of talent in the country. There is also an increasing focus on the sector through specialised training courses like the MSc in Aviation Finance at UCD Smurfit School. A big attraction for countries dealing with aircraft leasing companies like Avolon in Ireland is that we have double tax treaties throughout the world. This gives us a big advantage over leasing companies in other countries.  For me, the highly transactional nature of the business is really appealing. There is constant momentum and movement, and when I joined Avolon in 2011, it was still in the start-up phase.  The company had only just launched the previous year, it was well capitalised and key decisions were being made here in Ireland. I knew I would have a really great opportunity to grow and develop my career.  It is a small sector, so relationships are important. It is also competitive. Ultimately, you want to win business. A lot of the aircraft we lease are similar, so how successful you are comes down to how competitive you can be and how strong your relationships with your customers are. How did your career path with Avolon progress from 2011 onwards? I started as a business analyst on the Transaction Structuring Team, which helped me to learn about the various elements of how the business operated and, from there, I moved into a sales role in Aircraft Trading, which involved selling aircraft to global investors and leasing companies. That work allowed me to travel in Asia and the US and gave me a chance to see the world, which was brilliant on both a professional and personal level.  From there, I moved to the Capital Markets Team, which funds the business, raising money from banks, public markets and other investors.  At that time, we were evolving from a bank-funded model through to funding primarily in public markets, which was an interesting journey.  I was appointed Head of Capital Markets in 2020 and then took up my current role as Chief Financial Officer in October 2022. Talk us through how Avolon has evolved since you joined the company? Today, we have $30 million of assets, 578 aircraft flying around the world and customers in 65 countries. It’s a big business with an international presence. It’s taken us a while to get here. We had 20 staff in 2011 and we were private equity backed. We listed on the New York Stock Exchange in 2014 and that was a huge event.  We were public for about a year and then we were taken private again by Bohai Leasing, a company in China, at a 55 percent premium to our listing price. Bohai had a real ambition to grow and injected more equity into the business.  In 2017, we acquired the aircraft leasing business of CIT Group, one of our competitors, for $10 billion. That deal doubled our size and catapulted us into a different realm in terms of global scale.  We’ve continued to grow the business since. Last year, we had $2.3 billion revenue and $253 million net income.  What impact did COVID-19 have on Avolon and on your role as CFO? It was a black swan event where we suddenly had a global fleet grounded across the board. At that time, I was working on the funding side of the business with $18.5 billion of outstanding debt so a lot of our investors were calling and asking what was happening.  We run stress tests on our business all the time and one of our key points is that our assets are usually transferable from a challenging market to somewhere else in the world where there is demand, but COVID-19 was a global phenomenon. Thankfully, we were in the position to leverage a strong balance sheet, investment grade credit rating and high levels of liquidity, so we could protect the business through the challenges.  When airlines started asking for deferrals on their rentals during the pandemic, we were able to support them in a lot of cases because we already had a lot of liquidity.  We started to defer some of our order book to make sure we had enough cash in the business and quantitative easing in the US allowed us to raise capital to support this. Our profitability was hit in 2020 and 2021 when some of our airline customers went bankrupt or restructured, so now the focus is on returning the business to our pre-COVID profitability. It’s going well. Air traffic is back up and the reopening of China has driven increased traffic in Asia. We are seeing rising demand for our aircraft because supply chains for manufacturers like Boeing are struggling to produce aircraft quickly enough. What next for Avolon in 2023 and beyond? We are focused on growth and driving our financial performance following the impact of COVID. The major positive is that the market backdrop is very supportive. Airline demand for aircraft and aircraft leasing has increased dramatically with rising passenger traffic.  Right now, we own a fleet of 578 planes, with a further 252 on order. We have 147 customers spread around the world and about 45 percent of our business is in Asia, with long-term demographic trends that are very supportive of aviation. India and the Middle East are also big growth regions for us.  We issued a US$750 million bond offering in May. We haven’t issued a bond since August 2021 because the markets have been quite volatile due to COVID-19, the war in Ukraine and rising interest rates.  We have lots of different funding channels and we have relied on some of our private funding channels over the last year to 18 months, but ultimately, we see the primary source of our funding as coming from public markets. Getting back into the bond market was an important milestone.  From an internal perspective we’re really focused on further enhancements to the learning and development opportunities we offer the team.  Recently we launched Accelerate, a bespoke leadership development programme for emerging leaders with a particular focus on developing our female leadership pipeline. Looking back now, do you have any regrets  about the decision to train as a Chartered Accountant? No, no regrets. The training you get as a Chartered Accountant gives you a very good grounding in terms of the quality and scope of what you can offer as a professional.  When I was working in sales and trading here at Avolon, I was able to understand how the financials would impact and, when I went on to work in capital markets, I was able to figure out angles on the deals I was working on because of my knowledge as a Chartered Accountant. The world opens up to you because there are so many career options available to you. The appeal for me with Avolon is that it is an Irish-based company with a global reach and outlook.  That creates opportunity. It’s a constantly changing environment and that is what makes it so exciting and fulfilling for me.

Employment may be holding up for now but rising recessionary signals point to troubled times ahead, writes Cormac Lucey For some time now, recessionary signals have   been building up. Looking back over half a century, recessions tend to follow a distinct path.  First, central banks raise interest rates and tighten financial conditions. Second, the sectors most exposed to interest rates – construction and property – begin to suffer.  Third, the next most exposed sectors – banking and finance – undergo financial stress. And finally, deflationary pressures hit the general economy and the employment market suffers.  Midway through 2023, we have already hit stages one, two and three.  After a slow start, the European Central Bank has raised rates at a faster pace than ever before. The property sector is already suffering. Shares in the Irish Residential Properties REIT have dropped by about 40 percent over the last nine months.  And while the share prices of Irish banks have been holding up well, there is an air of subdued panic across the entire banking sector following the collapse of Silicon Valley Bank, Credit Suisse and First Republic.  Like characters in an Agatha Christie thriller, banks are anxiously wondering who will be next to be written out of the script.  So far, though, labour markets remain firm. In March, Ireland’s unemployment rate was 4.3 percent, a smidgen above the 3.9 percent minimum achieved in 2000/2001.  There are two features of this economic cycle that may be delaying the labour market’s rendezvous with recession. These features apply to Ireland and across the Western world.  First, following the massive fiscal splurge to cushion the economic effects of COVID-19, people on both sides of the Atlantic have hefty cash positions, making them less sensitive to interest rate hikes.  The latest Central Bank of Ireland quarterly financial accounts show that, comparing September 2022 with March 2020, Irish households’ financial assets have grown by €79.6 billion (19%) while their net worth has grown by €253.5 billion (32%). Second, lockdown mandates to stay at home, greater vulnerability to COVID-19 as one gets older, and the State’s pandemic splurge appear to have led a significant cohort of people to accelerate the move to retire.  With fewer people at work, full employment can be achieved with fewer total jobs.   But the main reason the unemployment dog has yet to bark is that employment is a lagging economic indicator.  Changes in employment trends happen after changes in the direction of economic output. When the economy moves from growth to contraction, employers do not immediately cut their workforce. They wait until they are sure that they must.  Many employers rushed to downsize during the pandemic and then found it difficult to recruit again once recovery arrived. Similarly, employers won’t immediately rehire once economic recovery kicks in. They will put staff on overtime while assessing the situation. On his True Insights website, investor Jeroen Blokland has observed that, on average, the US unemployment rate rises by four percentage points in the aftermath of a significant Federal Reserve tightening cycle. “Unemployment tends to start rising after the Fed is done hiking,” he noted.  Blokland reckons there is an average gap of about 20 months between the final Fed interest rate hike and the ensuing peak in unemployment.  Even if the Fed announced in June that it had completed raising rates, we might have to wait until March 2025 to reach peak unemployment. With Ireland having undergone significant private sector deleveraging since the financial crash, there is little likelihood of a self-feeding credit crunch, but our economy is highly dependent on a small number of US multinationals.  It has been reported that, last year, Apple paid €8 billion in corporation tax to the State. This represents about €1.3 million per employee. It contrasts with the roughly €60,000 Apple paid on corporation tax for each employee outside Ireland.  It’s a fragile foundation on which to build the public finances.  Cormac Lucey is an economic commentator and lecturer at Chartered Accountants Ireland

Sustainability is often seen as the domain of large corporates but SMEs have the collective potential to be more powerful players. Sheila Killian explains why Social and environmental sustainability is often seen as more relevant to big multinational companies (MNCs) than to SMEs, small-to medium enterprises employing no more than 250 people. MNCs are more likely to have a sustainability strategy, and resources for its implementation, monitoring, reporting and communication.  They are more likely to report externally, integrating their reporting across sustainability and financial activities, and to be scored by ESG rating agencies.  This does not mean that MNCs carry all the responsibility or should reap all the benefits, however.  SMEs are enormously impactful in aggregate and have a huge amount to gain by getting involved. So, why and how should they engage? The potential impact of SMEs on sustainability SMEs have a massive collective impact. In Ireland, they account for seven jobs in 10. While large companies are commonly exporters, SMEs tend to serve their local region.  In terms of where people live, work, shop and spend their leisure time, smaller enterprises dominate. This amplifies both their responsibility, and the opportunities open to them. Because SMEs are embedded in their communities, they often make a huge contribution socially without realising it. This may lie less in strategy than in values.  David O’Mahony of O’Mahony’s Booksellers Ltd, a long-established independent bookshop in the south-west, sums up the position: “It’s only when you really think about it and put all the things together that you realise that there’s a lot more going on … [in corporate responsibility and sustainability] … than we would have probably realised ourselves.”  O’Mahony’s enjoys high social capital locally, gained through understated good work for the community and environment, derived from values and a sense of neighbourliness rather than from formal reporting.  Why SMEs do not report Despite this implicit moral accountability, many SME owners do not think about reporting externally on their sustainability. This is often because they don’t see the value to be gained. Compared with MNCs, there is much less separation between ownership and management/control in SMEs.  Therefore, the need for both internal and external reporting is reduced because the main shareholders are already intimate with what is going on in the business, and employees are closer to the leadership.  Unless the business is considering raising external finance, there is little need to consider how potential investors might perceive it, and if there is a perception that customers are not interested in sustainability activities, these will not be reported.  It seems to come naturally to SMEs to be community-oriented, however, often because they are family-owned, and such behaviour reflects the origins and values of the family.  Such firms tend not to have formal, written codes of conduct, but instead propagate the personal values of their owners, who do not consider that a separate, published set of values and reporting on their social and environmental activities is necessary for business. Why SMEs should report One reason for SMEs to begin some form of sustainability reporting is so that they can compete with MNCs locally to attract and retain talented employees.  The labour market is tight, remote working has shifted the power balance, and younger generations are more focused on sustainability.  Increasingly, SMEs are framing their sustainability credentials more clearly, and connecting them with their employer brand so that they can attract the talent they need.  There is also a consumer angle. The challenge posed by behemoth online retailers to small, local bricks-and-mortar businesses is now well-rehearsed.  A small, independent business, like a bookshop, needs to clarify and articulate its values and personal touch as a competitive advantage.  This ‘personality’ needs to be communicated externally if it is to reach the right customers effectively. Sustainability reporting can convey a sense of what the company is all about, its values and purpose – its ‘soul’. A third reason, particularly applicable to SMEs operating in the business-to-business sphere, is that reporting on strong sustainability metrics confers an advantage in entering the supply chains of larger firms.  If, for instance, an MNC is moving towards zero-carbon, it is likely to require smaller companies in its supply chain to be also on that journey.  A fourth reason to report is the internal value to be gained from paying attention to sustainability. Measuring, reporting and constructing a narrative around social and environmental values will improve the culture of the business, and pave the way to greater innovation.  Hotel Doolin in County Clare is an example of a small business that tells its sustainability story effectively. It has shortened its supply chain by buying local produce.  The hotel harvests rainwater, it has eliminated single-use plastics, and uses environmentally low-impact energy and heating. It became Ireland’s first carbon-neutral hotel in 2019, under the Green Hospitality Programme, ahead of many larger competitors.  The business also promotes social sustainability, employing refugees, supporting local community groups and actively seeks to be a good employer. This has enhanced its reputation not only locally but nationwide.  Partnering with not-for-profits Smaller companies that are ambitious in terms of sustainability targets will inevitably want to achieve things that are beyond their capacity.  If, for example, a business decides to work on the water quality in the area in which it operates, it may lack in-house expertise, jeopardising its credibility with the local community. One solution may be a partnership with a not-for-profit organisation (NFP). NFPs often have the expertise to tackle social and environmental issues but lack the resources, whereas companies may have resources (money) but lack the knowledge. A partnership can achieve sustainability goals if the match is right.  The NFP needs to be operating in the area in which the company wants to make progress, and the company needs to align with the NFP’s approach to society and the environment.  Mutual respect and consultation are key. At worst, a partnership can be seen as a ‘fig leaf’ for the SME and can undermine the legitimacy of the NFP. At best, it can be truly impactful for all involved. SMEs’ supply chain responsibilities  MNCs are famously held responsible for the working conditions in which their goods are produced by companies in their supply chains. Scandals, including the sweatshop labour exposed in the 1990s to the Rana Plaza garment factory collapse in Bangladesh in 2013, have forced companies such as Nike, Gap and Nestlé to change their practices.  Bad practices persist today, however, even where goods are produced close to home. In 2020, for example, it was revealed that online vendor BooHoo was selling clothes made in extremely poor working conditions in Leicester in the UK.  For a small, independent retailer, this means that, unless it takes steps to assure itself of the origin of the goods it sells, the risk remains that all or some element/s of those goods may have been produced in sweatshop conditions.  Smaller firms may lack resources to monitor conditions in their suppliers’ factories. Nor are they likely to have the requisite buying power to impose a code of conduct on their suppliers. So, what can they do about the conditions under which the goods they sell are produced? The International Labour Organization has clarified that a firm has responsibility as far up the supply chain as it has ‘reasonable influence’.  Large firms can leverage direct buying power to positively impact supplier. Starbucks works with its coffee producers to bring them up to higher social and environmental sustainability standards, for example.  A small trader is, however, limited to choosing suppliers wisely, and using their influence when feasible, perhaps working with other firms in the sector. The key differences between the supply chain responsibility of MNCs and SMEs, then, relate to power and influence. This principle also applies to other areas of sustainability. More power means more responsibility and the potential to make a positive impact.  SMEs need to address all the key issues of fair pricing, employee welfare, human rights and environmental impact within their own operations and – as far as possible – outside of them, bearing in mind their levels of resources and power.  The key questions here are: “Are we doing all we reasonably can to achieve sustainable practice?” and “Are we seeking to improve?”  Sometimes, acting in concert with other SMEs, can achieve more. The outcome may not be perfection, but honest efforts in the right direction will carry collective weight.  Sustainability and the SME advantage While corporate sustainability is often seen as the domain of MNCs, SMEs – because of their numbers and connection with, and impact on, society – are potentially more important players.  Many SMEs do not report their sustainability policies for several reasons, including informality, time and resource pressures, unfamiliarity with reporting standards and frameworks, or because a strong internal locus of value and ethical behaviour is already vested in their owners and leaders.  However, SMEs generally have high levels of engagement with their local communities and implement sustainability on an intuitive basis, drawing on leaders’ personal values. Reporting these efforts can bring significant advantages externally and internally.  Despite a lack of resources relative to larger companies, the key to building sustainable value for SMEs lies in making the best choices that are within their power at a given time. Sheila Killian is Associate Professor at Kemmy Business School, University of Limerick, and author of Doing Good Business: How to Build Sustainable Value

With the Central Bank of Ireland’s consultation on the Individual Accountability Framework drawing to a close later this month, Níall Fitzgerald reviews the scope and effectiveness of similar regimes already in place in other parts of the world Following the 2008 financial crisis, global governance and regulatory reforms in the financial services sector have had a significant impact on how financial institutions, such as banks, insurance companies and investment firms, are run.  The EU has been at the forefront of regulatory change in financial services in Ireland since the creation of the Banking Union, which includes the European Supervisory Mechanism, and significant regulatory developments from rule-setters such as the European Banking Authority.  The Central Bank of Ireland has also put in place governance requirements for all financial institutions and implemented fitness and probity standards. These have included regulations requiring minimum competencies for individuals working in certain roles and, in some cases, regulatory pre-approval before individuals can be appointed to certain management positions, such as – to name just a few – board director, head of compliance, head of internal audit and chief risk officer. The proposed Central Bank of Ireland Individual Accountability Framework (IAF) is an extension of the current suite of regulations and efforts to address cultural failings and ensure better governance, performance and accountability among financial services firms.  The IAF is not the first of its kind, however, and while it has some unique features, it also shares similarities with regimes of this nature operating in other parts of the world.  UK: Senior Managers and Certification Regime The UK introduced the Senior Managers and Certification Regime (SM&CR) in 2016. Following a three-phase roll-out over three years, the SM&CR now applies to banks, insurance companies and a large portion of the remaining regulated financial services firms in the UK. This regime introduced: Prescribed responsibilities for certain roles; Requirements for firms to follow when allocating those roles to individuals, including: applying a certification process (up to obtaining pre-approval from the Regulator for an appointment to a role); and  the introduction of individual conduct rules. Hong Kong: Manager-in-Charge Regime In Hong Kong, The Securities and Futures Commission introduced the Manager-in-Charge (MIC) Regime for licensed corporations in 2017.  The regime did not bring in any new sanctions and was implemented by way of circular, rather than legislation, but it provided the regulator with additional powers of enforcement and the ability to hold individuals to account. A key objective of the MIC regime is to enable Hong Kong’s Securities and Futures Commission to assess culture within the licensed organisation.  The regulator attributes non-compliance with elements of the regime – e.g. failure to assess whether individuals have discharged their responsibilities appropriately, as evidence of cultural failings. Australia: Banking Executive Accountability Regime  Australia’s Banking Executive Accountability Regime (BEAR) came into effect in 2018, applying to the directors of, and the most senior and influential executives within, banks and authorised deposit-taking institutions (ADIs). The regime introduced prescribed responsibilities for certain roles, an accountability framework, and a list of accountability obligations, which look a lot like conduct rules.  The regime also introduced a requirement for relevant firms to defer a portion of the variable remuneration of any person found to be non-compliant with the regime until an investigation concludes, whether or not any or all of the remuneration is subject to clawback.  Singapore: Individual Accountability and Conduct Guidelines  The Individual Accountability and Conduct (IAC) Guidelines were introduced in Singapore in 2021. Like the MIC regime in Hong Kong, Singapore’s IAC Guidelines are not supported by underlying legislation and are described as “best practice standards”.  The level of adherence to IAC Guidelines among the financial institutions will impact the Monetary Authority of Singapore’s overall risk assessment of the relevant organisation or individual.  These guidelines focus on embedding a strong culture of responsibility and ethical behaviour by ensuring individual accountability and a supportive governance framework within regulated organisations.  Prevention is better than cure While there are similarities between the accountability regimes outlined above, none is the same.  The instances of enforcement action taken under these regimes are very low and, if prevention is better than cure, this may be a good measure of success.  Just one enforcement action was taken against an individual for non-compliance during the first four years of the UK’s SM&CR, for example. Following a review of Australia’s Banking Executive Accountability Regime, and amid public criticism citing the lack of enforcement action, the Australian government is currently proposing the wider reaching Financial Accountability Regime (FAR).  The FAR contains additional requirements and extends the regime beyond banks to other financial service providers regulated by the Australian Prudential Regulation Authority.  Elsewhere, the United Arab Emirates does not have a specific accountability regime. However, its laws and regulations, which pre-date 2016, give financial services regulators enforcement powers to hold individuals to account and apply sanctions.  Looking at just one member of the United Arab Emirates, Dubai, the Dubai Financial Services Authority has taken enforcement action against 32 individuals since 2016. The majority of these cases have related to individuals providing investment services.  Perhaps it is still too early to reliably judge the effectiveness of these various models of individual accountability regimes.  Sometimes, there is a benefit in not being first past the post in introducing a regime of this nature and being able to stand back and learn from global experiences.  With our Individual Accountability Framework, Ireland is building on a solid foundation of banking regulations and governance requirements. The IAF is only one of many regulatory changes impacting financial services providers. Other requirements on the way include the EU’s Digital Operational Resilience Act (DORA) and the inevitable evolution of governance codes, and other regulations, addressing sustainability and other emerging risks.  World-class standards are laudable, but their true outcome is only evident when we have a high level of public trust and a financial services sector that is efficient and competitive, driving a better future for society and a prosperous economy. Níall Fitzgerald, FCA, is Head of Ethics and Governance at Chartered Accountants Ireland Impact of individual accountability on organisational culture Chartered Accountants Ireland welcomes the timely publication by the Central Bank of Ireland (CBI) of the Individual Accountability Framework (IAF) draft regulations and guidance, and the certainty of action required for Irish financial services firms, writes Níall Fitzgerald.  The framework contains measures, including conduct standards and prescribed responsibilities, designed to enhance customer-focused cultures and embed responsibility and ethical behaviour across financial services in Ireland.  While it promotes the necessity for cultural change, the CBI agrees that more is required to achieve this. Insights from the introduction of similar measures in other jurisdictions show that an individual accountability regime better impacts on organisational culture when supported by: Promoting individual accountability but emphasising collective decision-making Being accountable as individuals for actions and behaviour is not new. Professionals are accountable to codes of ethics. There are also many laws and regulations that hold individuals accountable for their roles in an organisation, such as fiduciary duties of directors. However, many organisations thrive on collaboration, teamwork and diversity, which improve collective decision-making. Individual accountability is not designed to override this, and emphasising other positive behaviours, such as these, supports the objectives of the IAF. Promoting a ‘just culture’ and avoiding a ‘blame culture’ A blame culture focuses on identifying culprit/s, penalising them, and moving forward on the assumption that the same issue/s won’t happen again, because an example has been set.  A just culture acknowledges that mistakes and underperformance can occur, but that both are better addressed by reflecting on what went wrong and focusing on what can be learned to improve future outcomes.  Individual accountability exists in both scenarios, but the latter will have a more positive impact amongst the workforce, helping to achieve the objectives of the IAF. Promoting trust and integrity Certain informal reactions to a regime such as the Individual Accountability Framework can undermine its objectives. In some jurisdictions individuals with prescribed responsibilities prepare personal compliance files, for example, privately maintained outside of the firm’s documentation system.  A ‘cover your actions’ (CYA) approach has developed in these jurisdictions, whereby there is a tendency to give advice formally (e.g. in writing), which would differ if given informally (e.g. verbally).  Notwithstanding the risk of breaching privacy and confidentiality rules, these informal practices are indicative of low levels of trust and integrity within a firm.  Embedding a culture of psychological safety can deter this risk and foster greater trust within the organisation.

As this year’s annual LGBTQ+ celebration begins, we talk to six BALANCE members about their experiences in life and work As Pride celebrations kick off all over the world this month, six members of BALANCE, the Institute’s LGBTQ+ Allies network group, tell us about their experiences and what employers can do to support true equality.  Eimer Proctor Senior Manager When I first came out, Pride felt like a celebration and a safe space to be myself. Over the years, I’ve come to appreciate that this is not always possible, but I respect the path that has been forged by others to get us where we are today. During Pride 2023, I will remember those who lost their lives and stand in solidarity with my LGBTQ+ community around the world who still face persecution and continue to fight for their right to be who they are. It’s eight years since Ireland achieved marriage equality, and yet it was only in January 2020 that the law in Northern Ireland finally caught up. Given our current political situation in Northern Ireland, it’s unlikely that we will see any further advancements in LGBTQ+ rights and equality in the near future.  I find this very concerning given the rise in hate crimes, conversion therapy and anti-trans rhetoric in the media. It is up to everyone to help end discrimination for the LGBTQ+ community and promote equality.  There has been some great progress in recent years concerning diversity and inclusion in the workplace, but there is still work to be done to protect LGBTQ+ employees and at the heart of this is education.  Employers can introduce diversity and inclusion policies and practices, for example appoint diversity champions and work with employees to help them understand the appropriate language they should use in the workspace. Liaising with employees in the LGBTQ+ community and their allies is vital to understanding the obstacles the members of this community face every day. This, in turn, facilitates a greater understanding of how and why diversity and inclusion policies can directly impact business.  Those employees will, in time, become more comfortable to be themselves within their workplace, as they navigate the corporate world with the full support of their employer. Having these policies in place will also help to attract talented candidates, who will be carefully considering organisations with a strong commitment to diversity and inclusion.  Conor Hudson Finance Director It’s a general perception that Pride means ‘celebration’ and ‘party’. And, yes, this is a part of Pride – a platform to be yourself and express yourself, but still people are also joining Pride to ‘protest’ and it is important to remember that Pride started as a protest. Equality for LGBTQ+ colleagues in the workplace isn’t about sticking up a rainbow flag at the start of June.  Last year, in my organisation, a colleague and I launched an LGBTQ+ Employee Resource Group (ERG) with the intention of discussing Pride. While the initial reaction was positive, one response we received was, “We support LGBTQ+ rights; why do we still need to talk about Pride?” This remark justified why we needed an ERG – to increase visibility and offer a safe space to LGBTQ+ colleagues and colleagues with LGBTQ+ family. It is important for employees to feel part of an open and inclusive workplace from day one and allyship helps support this.  One of the actions we have taken to demonstrate visible allyship is to create MS Teams backgrounds and badges to highlight that this person identifies as an ally. We have found these a useful tool during recruitment and first introductions.  Allyship and open workplaces not only positively impact LGBTQ+ colleagues but can also support colleagues with LGBTQ+ friends and family.  Creating safe spaces for allies is equally important. They can’t be expected to know all the answers and they should be able to ask genuine questions without being judged. This culture not only creates open environments for LGBTQ+ colleagues, but also for other intersectional aspects of diversity. Hugo Slevin Head of Function Pride is a great day for us as an LGBTQ+ community, along with our allies, to come together and show unity, and strengthen through open visibility. It is always around this time of year that we start hearing the same question, “Why do we still have Pride?”, but I think it remains such an important day as shown by events over the past 12 months. First, we continue to witness attacks against our community members in ever-increasing numbers. Attacks across Europe are currently at a 10-year high and recent media coverage in Ireland has again brought this sharply into focus.  As a community, we should be able to feel safe in expressing and being who we are. Pride is very much our time to come together and have a platform to vocalise and display these concerns. We have also witnessed attempts to control the narrative on gay rights across the globe. Of significant concern has been what appears to be a regressing of rights in parts of the US, where this downward trend seems set to continue.  Even in Ireland, we have seen attacks on libraries and the cancelling of drag events in the last 12 months. Pride is the time of year during which our voices can be heard, and we stand against deliberate attempts to silence our community. Finally, Pride is fun! The streets of Dublin come alive – there is a real sense of occasion and happiness in the air. We get to walk the streets, dance and celebrate with our family, friends and co-workers. Jonathan Totterdell Major Programmes, Financial Services Pride in 2023 means a day of visibility and courage for both the progress we have made and the long path ahead for LGBTQ+ people around the world.  Recent events such as anti-LGBTQ+ Bills being passed in Florida and – closer to home, the rise of the far right and their anti-LGBTQ+ rhetoric – remind us that progress can be rolled back quickly, and it is imperative that those who live in relative safety can make some noise for those who can’t, without fear of repercussions. Over the past decade, I think we have seen some huge successes with gay marriage, a more open culture and a focus by corporates among Ireland to bring diversity, equity and inclusion (DE&I) to the C-suite. The financial services sector has been making really impressive strides. While there is a business case for DE&I, and many studies have shown that it leads to improved return on investment, I would like to see corporates in Ireland mature on this front, continue to grow their social consciousness, and see DE&I as a positive without the need to prove its financial return. Employers are expected to be ‘all in’ on DE&I in 2023, having the uncomfortable conversations that sometimes come with this topic, appointing champions and including DE&I as part of their leadership ethos. Inclusion is key on the DE&I agenda. You can have a diverse workforce, but without active inclusion, you will be missing a vital ingredient.  One thing I practice is to try to make sure everyone gets a chance to speak up at meetings and contribute ideas and viewpoints to decision-making. When people feel comfortable, they will be able to communicate their ideas more effectively.  Padraig Kilkenny Finance Manager For me, Pride is first and foremost a celebration. It is also an opportunity to reflect on the struggles for equality, not only in our own country, but for LGBTQ+ people across the world.  There is no doubt that Ireland has made considerable progress in terms of LGBTQ+ rights and fostering greater equality in recent years. Landmark victories such as the 2015 Marriage Equality Referendum and gender recognition legislation have increased visibility and acceptance across Irish society.  The Ireland of today reflects a society that embraces diversity and supports LGBTQ+ rights. This has never been more evident than at Chartered Accountants Ireland with initiatives such as the BALANCE network and, more generally, with its support for diversity and inclusivity initiatives. Personally, I am fortunate that I have never felt discriminated against in the workplace, but this is not to say that discrimination does not exist. What I have found helpful in my career is having LGBTQ+ representation at senior levels of the organisation and feeling that I have support from my colleagues and leadership.  I think this support can come in many forms from the highest levels where diversity and inclusion form part of the organisation’s strategy, values and by extension its culture, to more practical efforts, such as establishing and enforcing inclusive policies that protect LGBTQ+ employees from discrimination in areas like recruitment, promotion and benefits. Effective allyship is more than just having policies and strategies in place. It is about supporting and advocating for the rights, well-being and inclusion of LGBTQ+ employees.  Everyone should understand and challenge their own biases through education and listen to LGBTQ+ colleagues, valuing their experiences, and amplifying their voices and perspectives in discussions and decision-making processes.  Pride is a great marker in the calendar for employers to stop and reflect where they are on this journey to foster and support real equality across the board. Áine Crotty Audit and Outsourcing Manager As a leader of a team in my workplace, I believe in the power of people and the true potential that is inside each and every one of my colleagues regardless of their gender, age, sexual orientation, etc.  Therefore, being an ally to my LGBTQ+ colleagues is important to me because it supports them in reaching their full potential.  Non-LGBTQ+ professionals need to be aware of their actions and any potential bias they might have – without the awareness, there cannot be any action or change.  I would recommend attending events such as those organised by BALANCE so you can become aware of the issues your LGBTQ+ colleagues are facing.  There are also some fantastic resources and training out there about unconscious bias that will enable you to change the language you use or how you perceive and treat your colleagues.  After awareness comes accountability. As a non-LGBTQ+ professional, hold yourself accountable to making your work environment a more inclusive place for your colleagues. Make a commitment to yourself and others to change how you act with your LGBTQ+ colleagues for the better. Become an ally and be open and proud of that fact. Letting your colleagues know that you are an ally, and that you fully support them, can make them feel more comfortable in the workplace and allow them to speak more freely about any issues or discrimination they might be facing. It is widely known and accepted that culture comes from the tone at the top. Leaders, whether it be partners or senior executive management team members, need to bring DE&I to the forefront of their agenda. They need to live and breathe what they believe in and what they are trying to achieve for their employees. They need to lead by example and visibly demonstrate their belief in equality for all.

Ann-Marie Costello became the first female partner on the Corporate Finance Team at Grant Thornton earlier this year. Her advice to other women? Back yourself and take opportunities I grew up in a family of medical professionals, so accountancy was not necessarily the expected path. I actually changed from veterinary to commerce and German the day before the CAO application process closed, so my career could have been very different.   Opting to do a degree in commerce and German gave me time to decide what I wanted to pursue as a career. I found I really enjoyed the economics and accountancy modules, so it felt like a natural progression to go on to do the Master of Accounting at UCD Smurfit School before taking up a training contract with KPMG Corporate Recovery.  At the time, the accountancy ‘milk round’ was more geared towards traditional audit and tax routes, so joining an advisory team was the path less taken, but I really wanted the commercial experience that came with it.  Hitting the ground running Having a solid background in accountancy meant I could hit the ground running in Corporate Recovery and I had great training working on trading insolvencies. After qualifying and becoming a manager with KPMG, I left Ireland for a year of ‘anti-reality’, travelling the world.  When I returned, I met with Grant Thornton’s Debt Restructuring Team, who were pivoting away from insolvency. I liked the team and the idea of working to bring businesses back onto a stable footing.  After a few years, I transitioned to Corporate Finance and I made Partner in January of this year, becoming the first female partner in the department.  These days, my work is focused on helping shareholders to position themselves for the sale of a business and to maximise value. Most of my work has an M&A or due diligence focus.  So, in my career so far, I have been able to work with businesses across the entire economic cycle. Fall-off in female talent It just so happens that the areas in which I have worked have been particularly male-dominated, especially at senior levels.  My intake and training contract had a healthy mix of female versus male trainees but, from the manager level onwards, I saw a fall-off in female talent.  The reasons for the fall-off vary, ranging from the lack of a clear path for career progression, lack of support or mentorship, and movement from practice to industry, to work-life balance considerations and family commitments.  The diversity, equity and inclusion (DE&I) agenda was not well-developed when I was training, and as that has begun to change in more recent years, I think that it has brought some significant benefits. I do believe we have seen a move towards greater equity at senior levels – although the pace of change is slower than we may like, I think we’re getting there. We do need more balanced representation to attract younger generations – the ‘if you can’t see it, you can’t be it’ adage.  Greater supports are needed in the form of allyship and mentorship, as well as ensuring the wider conditions to support talent retention are met – these include issues such as childcare, paternity leave (both availability and take up) and flexible working.  There are wider societal shifts that need to become the norm to level the playing field further. Gender pay gap reporting Gender pay gap reporting has been a welcome development in terms of driving good behaviours within business and providing employees with greater transparency.  However, nothing can substitute the conversations on the ground that can provide you with clarity as to where you stand.  Conversations regarding remuneration, promotion and performance are often uncomfortable, so we sometimes tend to avoid broaching these subjects.  Time and time again, recruiters and HR teams tell me that, as women, we often undersell ourselves and have lower expectations for remuneration. We need to value our contributions more.  Do your research, back yourself and don’t be afraid to step out of your comfort zone to take on opportunities as they present themselves. Learning the skills for success At some point in your career, you will need to do more than just to be ‘good at the job’. At that stage, developing your career becomes about your network, your profile and your leadership. It is important to learn to have confidence in yourself and to value your input. This often comes with surrounding yourself with the right people, so don’t be afraid to talk – to your peers, your friends and your network. You will only ever regret the things you didn’t do, or say, so speak up and say ‘yes’ to opportunities for development. In my own experience, navigating career development and parenthood is not without its challenges. You need all the support you can get and to always try to look after yourself.  We just had our second baby towards the end of last year, a year during which I was also going through the partnership process, as well as taking on the role of Chairperson of Chartered Accountants Ireland Leinster Society.  I took on a lot, but there were several opportunities that presented themselves around the same time and, weighing it all up, I chose to go for them. I am lucky in that I have huge support from my family and, in particular, my husband, who had to pick up some of the slack. The role of mentoring and networking I sincerely believe that mentoring and sponsorship are key to development, and I’m glad to see so many businesses providing necessary resources and supports in these areas.  It’s important to have someone who can mentor you – someone who will tell it how it is, act as your sounding board and provide constructive criticism.  It is equally important to have a sponsor within your organisation – someone who will support you and guide you in your career development. I would encourage these relationships to be with both male and female mentors and sponsors.  It can often be helpful to have a mentor outside of your work environment to speak to about your work and personal development. Chartered Accountants Ireland provides a mentorship programme for members, which is a helpful resource. Networking can seem like a daunting task, particularly with the reopening of society post-pandemic. However, it really is never as bad as it seems.   The network of people Chartered Accountants will have from their time at university and training will be huge, and the Irish accountancy profession is particularly well-connected at home and abroad.  Try to keep this network active. You never know when you might be able to help someone, or when they might be able to help you.

The EU’s Markets in Crypto-Assets Regulation is just a few weeks away but is it a case of too little, too late for a fledgling market already in disarray? asks Peter McGuigan In a few weeks, the EU’s long-awaited Markets in Crypto-Assets Regulation (MiCA) will come into force, following agreement by EU policymakers last year.  Once formally enacted into EU law, the clock will start ticking for European issuers of stablecoins and crypto asset service providers (CASPs), who will have 12 months and 18 months, respectively, to prepare for implementing the new requirements. In many ways, MiCA is another example of the EU’s determination to be at the forefront of shaping the regulatory framework for digital or data-related industries – like the EU General Data Protection Regulation – while striving to further develop its overarching policy objective of “open strategic autonomy”.  At its core, and similar in some ways to other pieces of financial regulation, MiCA aims to create a “risk-based regime” that balances consumer and investor protection, financial stability and monetary sovereignty concerns, whilst supporting innovation within the EU.   Perhaps most importantly, it will also create legal certainty for crypto providers seeking to develop their activities in the EU.  Concretely, MiCA’s objectives will be operationalised through specific rules for issuers of both unbacked crypto assets and stablecoins. These rules cover authorisation, issuance, disclosure, governance, capital and own fund requirements, to name a few. The regulation also lays down a harmonised framework concerning CASPs, such as wallets and exchanges. CASPs will now be required to seek an authorisation in the EU before they can offer their services and will have to adhere to bespoke governance and satisfy market abuse regulation.  Can MiCA stabilise the crypto market? Since the collapse of FTX in the US last year and wider crypto volatility, views continue to be split between those who argue that the industry should be prohibited or pushed to failure, and others who advocate in favour of developing robust requirements to effectively bring it under the purview of financial regulators.   The reality, as recently outlined by the Governor of the Central Bank of Ireland, Gabriel Makhlouf, is that the crypto industry is not going away, and that it is therefore sensible to put in place a set of industry-specific rules designed to support innovation and protect consumers. It is, of course, difficult to determine with exact precision if MiCA could have completely prevented recent failures in the crypto market.  There is, however, a strong case to be made that it would have provided much more robust oversight and transparency for supervisors – enabling them to react and identify areas of concern much sooner.  In tandem, rules concerning the segregation of client funds and crypto assets, enhanced disclosure requirements and stricter requirements on conflicts of interest – as envisioned by MiCA – would have undoubtedly made the sector more resilient in a time of stress, and discouraged misconduct.   Despite these positive provisions, it remains to be seen whether MiCA can curtail future upheavals in the crypto market and keep pace with rapid technological innovation. Arguably, two areas will be crucial to the success of the framework:   The need for a globally co-ordinated approach to regulation so that failures in other markets are not transmitted into the EU as a result of interconnectedness; That EU policymakers are able to produce useable technical standards and guidelines to support MiCA’s application in practice.   Policymakers push for alignment Positively, at a global level, policymakers – through the Financial Stability Board and the Basel Committee on Banking Supervision – are already working on producing more horizontal principles and requirements for the sector.  Last year, for example, the Basel Committee published its position on the prudential treatment of banks’ exposures to crypto assets, while discussions are also ongoing among EU policymakers about how risk weights might be assigned to the asset class before the global standards are in place.  However, whatever capital requirements are assigned within the EU, it will be crucial that they are aligned with global standards in order to preserve a level playing field.  Work on MiCA’s technical standards and guidelines is expected to begin later this year, before supervisors need to enforce the rules in mid-2024 and early 2025.  As the legislation is a regulation, it should remove most of the risk of regulatory arbitrage within the EU, but it is crucial that all Competent Authorities take a harmonised approach with respect to licensing application processes. This is especially important as existing Virtual Asset Service Providers (VASPs), which fall under national frameworks, will need to transition to the pan-EU regime.  Comments made in May by the US Securities and Exchange Commission’s Hester Peirce acknowledge that the US risks falling behind Europe without clear crypto rules.   Ultimately, time will tell if MiCA is a success or not, but at least the EU has been the first jurisdiction globally to identify the risks and opportunities presented by the crypto asset sector. This regulation sets a solid basis on which to further build upon.  Peter McGuigan is Head of EU Affairs at the Banking & Payments Federation Ireland

In the face of rising business costs, practitioners must ensure that more SMEs avail of the Small Company Administrative Rescue Process in the months ahead, writes Graham Kenny In 1990, the Iraqi dictator Saddam Hussein led a ground force invasion into Kuwait. This war was to serve as an unlikely catalyst for a radical overhaul of corporate restructuring in Ireland. It set in train a clear evolutionary lineage to the Small Company Administrative Rescue Process (SCARP) recently enacted under the Companies (Rescue Process for Small and Micro Companies) Act 2021. To understand this evolution, it is important to consider what actually happened in 1990. The economic effects of the invasion of Kuwait had immediate and dire consequences for Ireland.  Up to 70 percent of Larry Goodman’s Anglo Irish Beef Group exports were sent to Iraq and its customers went into immediate default.   Faced with the collapse of one of the largest employers in the State, the then Taoiseach Charles J. Haughey hastily recalled the Dáil from its summer recess and passed the Companies (Amendment) Act in August 1990.  This piece of legislation introduced examinership into the Irish statute books and, for the first time, permitted protection from creditors and the subsequent write-off of company debts.  Over the past two decades, I have been involved in many of the seminal cases of examinership across a range of sectors, including the first Supreme Court hearing of an examinership (In Re Gallium Limited [2009] IESC 2009). My experience is that examinership has served as an essential corporate restructuring tool, saving thousands of jobs through schemes of arrangement. Often, however, the costs associated with such restructuring have been cited as a disincentive for smaller companies to use the process. As a result, examinership has notionally remained the preserve of larger companies. The genesis of SCARP In February 2020, COVID-19 reached Ireland and had a devastating effect on many small businesses. In response to the threat of another financial crisis, SCARP came into force in December 2021.  This new Act is based largely on the examinership model, but notably does not require an application to court for its commencement.  Like examinership, the idea behind SCARP was to give companies breathing space from their creditors in order to implement a restructuring plan, which ordinarily included the write-off of a portion of creditors’ debts.  Before discussing the necessary role SCARP will have to play in the coming months, it is important to first undertake a brief overview of the salient features of this new corporate restructuring tool.  Who can apply? The Companies (Rescue Process for Small and Micro Companies) Act 2021 is aimed at protecting ‘small’ and ‘micro’ companies.  Small companies are defined as having an annual turnover of up to €12 million, a balance sheet of up to €6 million and up to 50 employees.  Micro companies are defined as having a turnover of up to €700,000, a balance sheet not exceeding €350,000 and up to 10 employees.  How does a company prepare for SCARP? The first step a company should take in considering the SCARP process is that the directors should prepare a statement of affairs in accordance with section 558B(4) of the Act.  The statement of affairs is accompanied by a statutory declaration that is then given to a Process Advisor. What is a Process Advisor? The Process Advisor is ordinarily an experienced insolvency practitioner who will attempt to restructure the company’s debts. It may be noted that the company’s auditor or accountant cannot act as its Process Advisor.  The Process Advisor will review the company’s statement of affairs and other financial information (as set out in Section 558C(4)) and then outline their determination as to whether the company has a “reasonable prospect of survival”.  It is important to note that a Process Advisor does not take executive powers and that the board of the company maintains full control. The Process Advisor’s fees are subject to super-preferential status over all other creditor claims. How does the rescue process commence? If the Process Advisor determines that the company does have a reasonable prospect of survival, then they will confirm this in writing to the directors of the company.  Section 558D(2) sets out that, within seven days of receipt of such confirmation, the directors shall convene a board meeting to consider whether the appointment of a Process Advisor is appropriate.  Section 558K compels the Process Advisor to notify employees, creditors and the Revenue Commissioners within five days of their appointment.  Section 558O states that creditors must acknowledge receipt of such notice within seven days and further information regarding their claim within 14 days. Can a creditor opt out of the rescue process? Section 558L provides a list of potential excludable debts. This list includes the Revenue Commissioners.  Notably, the holders of such excludable debts have 14 days to notify the Process Advisor of their intention to be excluded from the rescue plan. Such creditors must give reasons for their decision to opt out.  From anecdotal evidence, it appears that the Revenue Commissioners is largely supportive of the process and generally determined to opt in. What is a Rescue Plan? Section 558Q sets out the matters that must be incorporated into any Rescue Plan. These include: a statement of affairs; the likely outcome for creditors on a winding-up or receivership; the effect of the plan on each creditor; the reasons why the plan is fair and equitable; and  details of the Process Advisor’s remuneration. How is the Rescue Plan approved? Section 558T puts the onus on the Process Advisor to call a meeting of members and creditors as soon as is practicable after preparing the Rescue Plan.  Section 558T(4) requires that such meetings shall be fixed for a date no later than 49 days after the date on which the Process Advisor was appointed.  It is important to note that creditors must be give seven days’ notice of such meetings, so in reality the meetings must be convened no later than day 42. Section 558Y(4) sets out that a Rescue Plan shall be deemed to have been accepted by a meeting of members or creditors when 60 percent in number, representing a majority in value of the claims represented at that meeting, have voted in favour. Section 558Y(5) sets out that the Rescue Plan shall be binding on members and creditors where at least one class of impaired creditor accepts the plan and, furthermore, that 21 days have passed from the date of filing of the notice of approval in the relevant court office and no objection is filed in accordance with section 558ZC. Section 558Z requires that creditors are given notice of such approval within 48 hours. It is important to note that under section 558ZB, the Rescue Plan will not become binding on members and creditors until 21 days have elapsed from the filing of the notice of approval. What does it mean for a Process Advisor to “certify” certain liabilities?  Like examinership, the Process Advisor is given the power under section 558ZAA to certify company liabilities.  This certification means that such liabilities are treated as expenses of the Rescue Plan and therefore give such creditors a preferential status.  This provision is often used as an incentive to encourage creditors to continue to trade with the company while a Rescue Plan is formulated.  The future of SCARP Corporate restructuring requires a fine balance between competing corporate interests, employee rights and duties to creditors.  An unfortunate consequence of this complexity is that the rules governing such restructuring, whether under examinership or SCARP, can be convoluted and sometimes confusing.  But this fact alone should not deter practitioners from seeking appropriate advice and permitting struggling companies from reaping the benefits of this multifaceted legislation.  The low number of companies availing of SCARP thus far is bewildering. I would suggest that one of the main reasons for this sluggish start is simply the unfamiliarity of practitioners with the process.  The well-worn path of liquidation is regrettably often proffered by advisors before a full consideration of SCARP (or indeed examinership) is properly undertaken.  I think the main reason SCARP has not taken hold, however, is down to the extensive supports and debt warehousing that has been offered by the State.  In my experience, entrepreneurial directors live in the moment and dream of a brighter future. Directors can be reluctant to focus on the dark clouds on the horizon and are often instead consumed with an arguably unrealistic optimism. A report published by the Revenue Commissioners in March 2023 highlighted that 13,000 businesses have been expelled from the tax warehousing scheme for non-compliance and are now facing a 10 percent penalty charge.  Perhaps more worryingly, the same report shows that about 63,000 businesses still had a combined €2.2 billion tax debt in the warehousing scheme. This report also revealed that such debts owed by businesses in the scheme ranged from 19,000 businesses owing less than €100 to 6,400 owing more than €50,000. Jobs and livelihoods at stake Behind all of these abstract statistics, it is important to remember that these businesses employ 400,000 people who, in turn, have families to support.  In the face of both cost-of-living and housing crises, it appears inevitable that any rise in corporate insolvency rates would have a devastating impact on countless families within the next two years.  In light of these stark numbers, it is incumbent on practitioners across Ireland to seek the appropriate advice from corporate restructuring specialists when consulted by companies in this quagmire of historical debt.  The sooner this advice is sought and considered, the more realistic the company’s chances of survival will be. SCARP offers a vital lifeline to many struggling companies, and in the coming months, it needs to become a standard go-to option for practitioners and  their clients.  Graham Kenny is a Partner in the Dispute Resolution and Litigation Practice Group at Eversheds-Sutherland LLP

In his new role as head of PwC Ireland, Enda McDonagh wants to attract the ‘best and the brightest’ with a culture of openness and trust As the incoming Managing Partner at PwC Ireland, Enda McDonagh is busy preparing to take over in his new role from 1 July. Although still “very much in the transition phase”, McDonagh is, he says, already clear on one of the biggest priorities ahead for his four-year term at the helm of the professional services firm.  “Our people are our single most important asset. Fundamentally, our business is about people,” McDonagh says.  “What differentiates the firm in the market is the calibre and quality of our people, so attracting the next generation of leaders – the best and the brightest – will be a key focus for me.” McDonagh has been Assurance Leader with PwC Ireland for the past eight years and part of the leadership team reporting to Feargal O’Rourke, the firm’s outgoing Managing Partner.   McDonagh’s career with PwC Ireland stretches right back to 1994, however, when it was still trading as Price Waterhouse and long before the move to its current flagship premises on Dublin’s North Wall Quay. “When I walked through the doors of our old office on Wilton Place that first time, would I have thought I would be where I am now 29 years later? I don’t think I could have predicted it,” McDonagh says. “I’ve worked for one firm in that time, but I’ve had multiple careers through the roles and the experience I’ve had.  “Working closely with so many clients across different sectors has taken me from indigenous companies operating in the domestic market right through to multinationals trading in Ireland – and offering them the support mechanism they need to invest here. “Ultimately, I think I’ve gotten to where I am now by taking every opportunity that has come my way and making the conscious decision to keep learning at every stage of my career.” The team around McDonagh has also helped. “I’ve had some ‘bad hair days’, we all do, but I’ve always had that support around me, not just when I’m at my very best, but also when I’ve needed help. That’s really crucial, I think. It’s why I’m still here and why I absolutely still love it.” Of particular importance to McDonagh has been the support and guidance he has received from Feargal O’Rourke, who has been Managing Partner at PwC Ireland for the past eight years. “Feargal has been a great role model and mentor to me,” he says. “His support and enthusiasm for our people and the business over the years has been unrelenting. I have really valued his leadership and would like to wish him every success in his next chapter.” As the new Managing Partner at PwC Ireland, McDonagh will lead a firm with national reach extending to 3,000 people in Dublin, Cork, Galway, Kilkenny, Limerick, Waterford and Wexford.    It will be far from a solo endeavour, however. “One of the most important tasks right now for me is assembling the leadership team I will work with over the next four years.  “One of our core values at PwC Ireland is that we work together as a team and this extends right through to me and how I work with the team around me,” he says. “Everything we achieve, we achieve as a team. No one person ever has the monopoly on good ideas. Equally, no one should ever be in a situation where they are left on their own to try to solve a problem, or to figure something out.  “You absolutely have to support people and give them the space to understand what they want from their career and what they need to grow as professionals, and as people.  “They can only really do that if they know and trust that they are in an environment in which it is okay to make mistakes.” A Partner with PwC since 2006, McDonagh held the role of Assurance People Partner for four years before he was appointed Assurance Leader in 2015. It was this role that gave him his first real insight into the strategic value of good people management and meaningful employee engagement. “I learned so much in those four years about how to make sure that all aspects of how you engage your people is as it should be, both operationally and from a management perspective,” he says.  “It’s really about how they experience the firm from recruitment through all the stages in their career, and making sure that what we are giving them is rewarding and exciting. That is enormously important.” McDonagh’s own interest in accountancy as a career took root when he attended Templeogue College in Southwest Dublin. “I had a tremendous accounting teacher who really kindled my interest and, after I did the Leaving Cert, I went on to study Commerce at UCD followed by the Master of Accounting at UCD Smurfit School.” He joined PwC Ireland, then Price Waterhouse, in 1994 while still studying for his master’s. “We hadn’t yet merged with Coopers & Lybrand at that stage to become PwC Ireland, so I’m really one of the dinosaurs here,” he says. In the years since, McDonagh’s career has centred mainly on large-scale listed Irish companies and multinational corporations. “From a business perspective, I’ve always worked in the non-financial services part of the practice,” he says.  “What we’ve called this has changed more times than I can tell you over the years, but, essentially, my focus has been on big companies in sectors like manufacturing, industrial products, pharmaceuticals, life sciences and food.” Although he has spent much of his working life with PwC in Ireland, McDonagh recalls a three-year stint with the firm’s Boston office in the early 2000s as a particularly important period in his career. “That time was really key for me in terms of the lessons I learned and how important they have been to me since,” he says.  “I moved to Boston as a manager and then became a senior manager over there. I think, for many of us, when you take yourself outside your own comfort zone, you learn the most. “For me, moving to Boston was like starting again. I didn’t know anyone. I didn’t have any connections in the city. “In that situation, you have to build your brand and reputation from ground zero, and in a much bigger market. It was a challenge, but one I loved and learned a huge amount from. “People are much more direct in business in the US, so you very quickly form a thicker skin. As my career has progressed in the years since, that resilience has stood to me.  “At the same time, I made some lifelong friendships professionally and personally with my PwC colleagues in the US, but also with people at the companies I worked with.  “Those relationships have stood me in good stead because Ireland as an economy has such a vibrant trading relationship with the US. Having experience and connections there is very helpful.” Now, as companies in Ireland, the US and elsewhere grapple with a fresh set of challenges post-pandemic, McDonagh is seeing a “singular view” emerging in boardrooms around the country.  “It’s an interesting time. The global economy is clearly softer now than it has been for some time and, as we know, there are multiple elements to this. “There are the rising interest rates, inflation, the cost of doing business, and the general economic outlook, which is far from clear. “Everyone is facing these challenges but there is also something else that is very much front-of-mind now in the boardroom and that is the pace of technological change. “There has been this sudden acceleration in the development of technologies like Artificial Intelligence, and that means that many companies are looking ahead to a pretty demanding change agenda no matter what sector they operate in.” This change will bring opportunity as well as challenge. “The positive here is that companies are able to see beyond current challenges, and they are thinking about how to position themselves for the opportunities that lie beyond,” says McDonagh. “And from an Irish perspective, economically we are certainly in much better shape than we were at the time of the global financial crisis.  “We have strong fiscal returns, and we still have good investment trade flows into Ireland. This tells me that we have the capacity to weather the storm and navigate the headwinds coming at us.”  

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