With Budget Day approaching, Tom Woods outlines his recommendations for ensuring this year’s measures support social and economic progress With Budget 2024 just two weeks away, Ireland is experiencing mixed economic fortunes. On the positive side, near full employment and significant exchequer receipts would suggest that the Government has an unprecedented range of policy choices to consider. Nevertheless, the economy is also facing constraints. Inflation and interest rates offer limited room for manoeuvre, making selecting the right policy choices much more difficult. Housing KPMG suggests introducing a new low VAT rate on the sale of new builds to help with the affordability of purchasing a new home. We also support the reintroduction of mortgage interest relief to help homeowners with rising interest rates and growing mortgage repayments. We recommend that the taxation of professional landlords be reformed to put them on a similar footing to trading businesses. This would help to attract and retain more landlords and boost the supply of housing stock in the rental market. Reintroducing a controlled and targeted Section 23-type rented residential relief (tax relief applying to rented residential property in a tax incentive area) would also promote housing investment in less sought-after areas. The workforce As a small, open economy, our successful tax policy has helped make Ireland a location of choice for multinational business. As a country at close to full employment, we need an attractive personal tax regime to keep and grow mobile talent to support the growth of domestic and international businesses in Ireland. There is a range of budgetary measures that would help us in this regard, including the widening of the personal tax bands and credits, consideration of a new intermediate tax rate of, say, 30 percent, and the automatic indexation of credits and bands to help dampen the impact of inflation and protect the value of wages. The taxation of share-based remuneration could also be simplified, and we would like to see some improvements to the Special Assignee Relief Programme (SARP). Innovation and entrepreneurship The impact of foreign direct investment (FDI) on the Irish economy can’t be overstated. However, the ongoing changes to the international tax landscape emphasise the importance of having the most enticing regime within the new rules. As mentioned above, an inviting personal tax regime will become more critical, as will having an appealing research and development (R&D) regime to promote and foster more innovation. Several measures could be introduced to promote more innovation, including an upfront entitlement to cash refunds of R&D tax credits for smaller businesses. The R&D tax credit of 25 percent could be improved to either 30 percent or 35 percent to make it more attractive internationally. Moreover, the rules and the application process to qualify for this credit should be simplified. Other jurisdictions continue to refine and improve their R&D offering, so it has never been more important for Ireland’s regime to be as inviting as possible. International changes also underscore the need to support the growth of the domestic sector.  We have made several recommendations to support SMEs. These include introducing a new 20 percent capital gains tax (CGT) rate on the sale of shares in SMEs and some improvements to entrepreneurs’ relief to promote investment in SMEs. We advocate simplifying the rules underpinning the Employment Incentive Investment Scheme (EIIS) to make it more accessible and easier for businesses to raise capital. We also propose that the standard income tax rate of 20 percent be applied to dividends paid by SMEs. This should encourage promoters of SMEs to remain committed to growing their business and enable companies of scale to emerge from the domestic SME sector without the need to sell down equity. Climate Ireland’s ambitious climate goals will present challenges and opportunities for individuals and businesses. Several tax supports could be considered to help Ireland achieve its climate goals. These include measures to promote private finance for green investments via ESG bonds and pension funds. We also believe that tax measures could be introduced to help accelerate the move to electric and hybrid vehicles and support the agricultural sector in its transition to more sustainable practices. Inflation While the exchequer receipts are in rude health currently, this revenue may be vulnerable in the future, and a measured approach will be needed when deploying the available resources. While there is potential for some measures to impact inflation, the significant benefits of achieving policy objectives need to be weighed up against their inflationary impact. The measures unveiled in the forthcoming budget will signal the Government’s direction of travel across many issues. The good news is the resources are there to help sustain our social and economic progress. Tom Woods is Head of Tax at KPMG

Shadow boards can unlock innovation, bridge generational divides and boost profits. Stephen Conmy explains why Many businesses struggle with two seemingly unrelated issues: disengaged younger employees and a lack of response among senior executives to shifting market trends. Some companies have tackled these problems by creating a “shadow board” – a group of non-executive employees who work with senior executives on strategic initiatives so the organisation can gain insights from the younger generation while broadening the view of senior executives. The specific roles, responsibilities and authority of a shadow board can vary widely depending on the organisation and its goals, however. So what exactly is a shadow board? Generational perspective A shadow board is typically sponsored by the CEO and consists of nine to thirteen younger people (either millennials or Gen Z) from a cross-section of the business whose primary purpose is to provide insight, feedback and ideas to senior decision-makers in the company, representing their generation’s perspective. Members of the shadow board learn about the company’s strategy and decisions so that they can share with their peers and network. The shadow board at work Harvard Business Review (HBR) reported that when Gucci created a shadow board of younger employees, its profits soared. By contrast, when Prada didn’t pay attention to the creative input of its younger employees and failed to recognise the growing power of digital influencers, its profits fell. The tale of these two fashion giants is a valuable lesson for all companies regarding the potential creative energy of a shadow board. As reported by HBR, in the past, Prada had high margins, a legendarily creative director and good growth prospects. Since 2014, however, sales have declined. In 2017, the company admitted that it had “been slow in realising the importance of digital channels and online influencers disrupting the industry”.  Meanwhile, during the same period, Gucci created a shadow board.  Gucci’s shadow board is made up of millennials, and in 2015, met regularly with senior management. The shadow board’s insights have “served as a wake-up call for the executives”, and Gucci’s sales grew by 136 percent. This growth was primarily driven by the success of both its internet and digital strategies.  In the same period, Prada’s sales dropped by 11.5 percent.  Types of shadow boards There are three different types of shadow boards: Developmental shadow board Shadow boards are used by certain businesses to prepare and promote younger or less-experienced staff for future leadership positions.  A shadow board, in this context, is made up of people who do not have formal authority inside the organisation but participate in board-like conversations to provide new perspectives, develop novel ideas or gain experience in board-level decision-making.  It’s a learning experience for these people, as well as a method for the organisation to gain diverse perspectives. Checks and balances shadow board In other situations, a shadow board might act as a separate, unofficial group that reviews and critiques the decisions of the official board of directors. It can offer alternative perspectives or point out potential flaws in the board’s decisions. This structure is less common and can sometimes arise in activist or oversight situations. Perspective shadow board Especially in larger or more complex organisations, a shadow board can be formed to offer viewpoints from different parts of the company or from different stakeholder groups. For instance, a non-profit might have a shadow board made up of the people it serves rather than employees. Mutually beneficial arrangement Shadow boards provide younger workers with the visibility and access they desire, which can often lead to significant career advancement. Notably, the impact and insights of the shadow board can drive valuable offshoots more senior executives might otherwise miss. Not only is a shadow board beneficial to both the members and its organisation, it can also contribute significantly to effective governance, innovation and leadership succession planning. Stephen Conmy is Head of Content at the Corporate Governance Institute

In the face of high inflation and looming challenges, Budget 2024 should focus on supporting Irish SMEs, writes Neil Hughes As we look ahead to 2024, there remains much to be optimistic about. Despite high inflation, the latest Azets SME Pulse Survey reveals that fewer than one in five SME leaders anticipates a decrease in revenue and profits this year. This points towards the positivity that surrounds the future of SMEs. It’s not the time to be complacent, however. Challenges lie ahead. Rising prices are putting a squeeze on already tight margins while many businesses are facing difficulties in attracting and retaining talented people. Employing more than a million people and accounting for two-thirds of firms in the private sector, SMEs are the backbone of the Irish economy, and this group should be a major consideration for Government in Budget 2024. SME Innovation Fund We propose the Government set aside €2 billion to establish an SME Innovation Fund, so Irish SMEs can harness the opportunities of the twin digital and green transitions. Putting aside €2 billion from the recent record tax take, taken in conjunction with other measures, could provide an important step in diversifying Ireland’s economic model and ensure that SMEs are nurtured and can thrive long into the future. National minimum wage SMEs across Ireland are concerned with the increasing cost of doing business. We recommend limiting any increase in the national minimum wage next year to the rate of inflation prevailing on the date of the Budget rather than the 12 percent increase recommended by the Low Pay Commission, which would place a significant burden on SMEs. SME Talent Taskforce We urge Government to consider the creation of an SME Talent Taskforce to address the significant challenges facing SMEs in attracting and retaining talented people within the domestic economy. Featuring representatives of Government, Enterprise Ireland, Local Enterprise Offices, employment bodies and the SME sector, it would be tasked with developing a dedicated roadmap to address bottlenecks in the labour market. Bringing together a new SME Talent Taskforce would help ensure that SMEs have a level playing field in attracting and retaining talented people and help them to succeed in a tight labour market. These measures should help SMEs ease the rising cost of doing business and staff shortages, as well as develop sustainable firms. Neil Hughes is the Managing Director of Azets Ireland

The ‘social’ facet of ESG is gaining more prominence with the evolution of gender pay gap rules, consumer trends and employee priorities, writes Doone O’Doherty The ‘social’ elements of environmental, social and governance (ESG) are rising in prominence, having played a secondary role to the environmental and governance pillars for some time. This lack of focus is partly because environmental and governance issues are much more clearly defined, and regulations in these areas are better developed – but things are changing. Local gender pay gap reporting regulations and the EU Pay Transparency Directive are game-changers. These, coupled with changing consumer preferences and employee attitudes, are prompting companies to increase their focus on social issues. The ‘S’ and tax contributions The social pillar of ESG looks at an organisation’s contribution to societal fairness. Total tax contributions are key in this regard, as tax is a key indicator of an organisation’s contribution to society. While the media often focuses on the level of corporation tax earned by the State, it is important to remember that companies are responsible for collecting income taxes via the PAYE system. In 2022, PAYE income tax and the universal social charge (USC) amounted to €25.46 billion. This equates to 30 percent of total Exchequer receipts. In addition, by paying employers’ PRSI (11.05%), employers are a significant contributor to the Social Insurance Fund, which funds social welfare benefits and the State pension. These are important components of an employer’s role in contributing to society via the tax system. This can increase trust in the market and promote an organisation’s overall purpose and values. The ‘S’ and pay equity When it comes to ESG and pay, the focus tends to be on linking executive pay to ESG goals. However, through an employment lens, an ESG strategy isn’t complete unless it addresses issues relating to all employees and supports the growth of a truly diverse workforce that is treated fairly, paid equitably and without bias. Equal pay In Ireland, equal pay provisions are contained in the Employment Equality Acts 1998 to 2021. Under this legislation, an employer is prohibited from paying an employee less (either directly or indirectly) in the same employment doing ‘like work’ on nine different grounds of discrimination. Although an organisation may be fully committed to equal pay, businesses must review their pay systems and consider carrying out an equal pay review to highlight issues they may not be aware of. If there are equal pay gaps, organisations must explain why. If no reasonable explanation can be found, steps must be taken to close the gaps. Gender pay gap Even if employers comply with equal pay obligations, they may still have a gender pay gap. Our analysis of 500 of the country’s largest employers that published gender pay gap reports in December 2022 found a mean gender pay gap of 12.6 percent. Firms must file new reports in December 2023 based on their situation in June. Progress in closing the gap will require a concerted effort that is enabled by HR, but led by business leaders, to improve the representation of women in their businesses. Pay transparency While many organisations already monitor pay equity, the EU Pay Transparency Directive – which must be transposed into national law by 2026 – introduces additional pay transparency measures. Key features of the Directive include: Recruitment: an obligation on employers to provide information concerning pay levels as part of the recruitment process and a prohibition to prevent organisations from asking candidates about their current or historic pay. Pay philosophy: a requirement for employers with more than 50 workers to share information on the criteria used to determine pay levels and progression. Pay information: a right for workers to request information on the average pay level split by sex for workers doing the same work or work of equal value. The ‘S’ and worker classification Spurred by COVID-19, on-demand labour platforms have grown. These offer new job opportunities for workers and convenient, more affordable services for consumers. The gig economy has become a hot topic in many societal and political debates. The debate primarily focuses on the workers’ working conditions and social security status. In Ireland, there are many ways to work and operate a business. Specific legislative protections for workers apply to each type of employment. For employers, it is important to ensure workers are correctly classified in a way that matches the reality of the relationship between the worker and the business. The misclassification of an individual can impact tax, social security and employment law rights and obligations. It can also lead to reputational damage if a company is perceived as treating workers inequitably. Acting as responsible corporate citizens With more focus on the social element of ESG, employers must make the following a priority for their organisation: Understand what legislation requires and the financial and reputational implications of getting it wrong. Ensure that their strategy, processes and systems around the changing regulations that underpin fair pay and workers’ rights are robust and accurate. Validate their organisation’s ability to produce the necessary statistical data to ensure compliance with the legislation. And if they cannot, identify the gaps. Employers should also begin crafting the narrative to explain how they support social progress – treating employees fairly, driving equality and acting as responsible corporate citizens. Doone O’Doherty is Tax Partner of People & Organisation at PwC

Afraid to negotiate? Ornaith Giblin outlines her top tips to help you overcome your fear and come out on top If negotiating a 10 percent discount on a store-spoilt item in a shop makes you feel uneasy, negotiating a large, complex business deal, asking for a pay raise or haggling with a vendor is probably your worst nightmare. Here are five useful strategies to help get what you want in any negotiation. Define your walkaway point and understand your variables Preparation is king, not only to become comfortable with your demand, but to fully understand and equip yourself with a self-made negotiation toolkit. Work out your lowest or highest walkaway point by asking yourself: when would it become financially unviable to continue the conversation? You should also consider what else you can offer your opposition, perhaps intangible, to get the best deal possible. Is it an introduction to another area of your business? An opportunity to tender for next year’s service agreement? These are your variables, your secret armour in the negotiation process. Own, command and use them. Decide what’s at stake Before going into any negotiation, understand two things: there are people, and then there are problems. Without managing both, you won’t agree to a solution. To negotiate effectively, it is important to distinguish your counterpart's underlying motivations from superficial bluffs. For instance, if you find out that their main motivation is to ensure you buy at least 25 laptops because they know they will cut a profitable deal at that volume, you may find that asking for free additional items is the best way forward. Minimise conflict How many times have you entered into a negotiation that has become tense or has even disintegrated because of personality conflict? Negotiation is outside of (nearly) everyone’s comfort zone, which means that, for most, these conversations are approached with mixed emotions. Add to this, the emotional pressures negotiating may bring to the table (perhaps performance-related), and you have a potential recipe, not just for tension, but also aggression and defensiveness. It is imperative that you go into a negotiation with your feathers unruffled. Be sure to watch your tone, try to build rapport and always be polite. No one has ever had a successful outcome by being rude. Don’t let price win or lose you the war You’re going into a negotiation with a walkaway point based on price, and likewise, your counterpart has come into the conversation from the same viewpoint. If you are both stuck on this walkaway point, you have to ask yourself what can be brought into the mix. If the price can’t be negotiated, what can you ask for as a compromise? If you have already identified what’s of value to the other party, and know what is of value to you, you can let that be your bargaining chip. Understanding your variables and theirs is key to optimising a negotiation situation. Find a win-win solution A wise person once said to me that a good deal is in your head. If you’ve achieved your objectives within your boundaries, and you are happy you’ve agreed to a good deal, then you could class yourself as a winner. However, if you’ve done that by derailing your negotiation counterpart, that’s a win-lose. By not finding a middle ground everyone is happy with, you’ve probably ruined your relationship with your vendor (or boss or organisation), leading to other issues down the line. In business, it’s important to never burn a bridge, and agreeing to a win-win solution is key to building mutually productive partnerships. Ensuring your solution is well-balanced and meets enough of both parties’ expectations is key to making sure you walk away from a negotiation with an actual good deal. If you really negotiate rather than barter with your counterpart, your relationship can produce longer-term mutual gains and a situation that can provide lasting returns for both parties. Ornaith Giblin is a consultant of mid-senior qualified accountants at Barden. You can get more information at Barden.ie

Remote and hybrid work is changing employee eating habits, productivity and work-life balance. Deirdre O’Neill explains how employers can foster healthier and more productive teams Employees who work from home are more likely to eat indulgent foods, snack between meals and work longer hours than their workplace-based colleagues, new research from Compass Group indicates. More than half of workers globally said they struggle to maintain a healthy diet while at work, with employees who work from home finding it hardest to resist temptation. Figures from Compass Group show that 53 percent of home-based and hybrid workers in Ireland admit to regularly eating indulgent foods during their working day. They were also found to snack on average 1.9 times a day, almost 20 percent more than workplace-based employees. Healthy eating expectations and realities The survey found that most workers recognise the productivity and well-being benefits of a healthy diet during their working week. Sixty-seven percent of respondents said that what they eat and drink at work directly impacts their productivity, and, of the Irish respondents, 77 percent said the food and drink they consume has a direct impact on how they feel. Hybrid workers are making the effort to maintain their health while in the office. Seventy-five percent in Ireland said they make a concerted effort to eat healthier foods when they are in the workplace. With snacks readily available in the kitchen cupboard and the hassle of planning and preparing balanced meals, employees working from home find it hardest to maintain healthy eating habits while working. Age-related eating habits Healthy eating has a generational component, as well. Younger workers in Ireland are most interested in healthy eating and its impact on productivity. Millennials are likelier to choose a healthy snack during their breaks (48 percent versus 44 percent of Baby Boomers), and Gen Z snacks more than any other demographic, averaging 2.3 snacks per working day, sometimes replacing a main meal. Despite their snacking, however, 87 percent of Gen Zers agree that what they eat and drink at work directly impacts how well they work, compared to just 56 percent of Baby Boomers. Work-life balance The survey revealed that home-based workers are nearly three times more likely than workplace-based colleagues to exercise during the working day. However, 66 percent of hybrid workers said they work longer hours when working from home, detracting from their work-life balance. The research also highlighted that hybrid workers miss the opportunity to socialise with colleagues during their working day, with 60 percent saying they would like to eat lunch with colleagues more often. Employers can enhance the health of their people by offering wellness programmes, encouraging regular exercise and providing nutritious food options while hybrid employees are in the office, and creating a supportive work environment that values work-life balance, ultimately fostering happier and more productive teams. A healthy bottom line In a world where remote and hybrid work has become the norm, maintaining healthy eating habits and work-life balance presents unique challenges. Employers are pivotal in promoting employee wellness through tailored programmes, nutritious offerings and a balanced work environment, ensuring a healthier and more productive workforce. Deirdre O’Neill is the Managing Director at Compass Ireland

Navigating the evolving cyber threat landscape demands vigilance. Aaron Hambleton explores four critical vulnerabilities shaping the second half of 2023 In the ever-evolving landscape of business technology, the second half of the year presents a host of challenges that demand the unwavering attention of organisations and cybersecurity experts. As organisations navigate this dynamic environment, it is imperative to be acutely aware of the vulnerabilities that loom large on the horizon, poised to test the resilience of businesses and their security measures. As we delve into the nuances of these vulnerabilities, it becomes evident that vigilance and proactive measures are the keys to safeguarding organisations. Here are four vulnerabilities organisations and businesses should be aware of going into the second half of 2023. 1. AI-powered social engineering attacks Artificial intelligence (AI) has entered almost all spheres of the business world. While AI brings numerous benefits and advancements, it also introduces new cybersecurity risks, such as social engineering attacks. These attacks use manipulative tactics to deceive the victims into revealing sensitive information or trespassing organisations’ security infrastructure. To execute these attacks, cybercriminals rely on AI-based natural language processing (NLP) algorithms to generate more realistic and human-like phishing emails, chatbot interactions or voice calls. According to Forbes, “AI technology is advancing so rapidly that hackers are very possibly developing their own custom AI applications specifically designed to take social engineering to the next level.” Detecting these malicious campaigns is getting harder for the average employee, which is why significant training is required to know what to look for and how to prevent escalation. 2. Cloud-based breaches Cloud computing has become the norm in today’s digital landscape, offering scalability, flexibility and cost-efficiency to businesses. However, the widespread adoption of cloud services exposes organisations to new cybersecurity threats, making them a major concern in 2023. Cybercriminals target cloud environments to exploit misconfigurations, weak access controls or insecure application programming interfaces (APIs). A recent example of the consequences of cloud misconfigurations is the Toyota data leak, in which the personal information of over two million customers was exposed after an access key was leaked on GitHub for almost five years. “Upon discovering the GitHub [repository], Toyota immediately made it private. Two days later, the company changed the access key to the data server. The Japanese giant commissioned an investigation into the blunder and was unable to confirm or deny whether miscreants had spotted and used the key to pilfer data from the server,” reports The Register. 3. Enhanced phishing attacks Phishing attacks involve cybercriminals posing as trustworthy entities with the intention of deceiving individuals into divulging sensitive information or performing malicious actions. With over 500 million phishing attacks reported in the US in 2022, this number is expected to rise further this year. Threat actors are continuously refining their techniques to make phishing emails and messages appear more genuine and convincing, which takes a trained eye to spot. 4. Zero-day vulnerabilities in supply chain attacks With the increasing complexity of supply chains and the interconnectivity of various systems, zero-day vulnerabilities are expected to be a significant cybersecurity threat in the second half of 2023. A zero-day attack is a strategic exploitation that involves the use of previously unknown vulnerabilities in the supply chain and has no available patches or fixes. These vulnerabilities in the supply chain can have severe consequences, allowing attackers to compromise the integrity and security of products and services. They can lead to data breaches, unauthorised access, and the potential for sabotage or manipulation of systems. Aaron Hambleton is Director for Middle East & Africa at SecurityHQ You can read their full white paper, Global Threat Forecast: H2 2023 Predictions, at securityhq.com

From flexible workspaces to scheduling brainstorming sessions, Mark Fallon outlines five strategies to ignite innovation and inspire your hybrid team It can be challenging to spark creativity when working from home and even more difficult to encourage creativity among your team members. Here are five steps leaders can take to encourage remote creativity that supports organisational success.   1. Facilitate workspace flexibility A change in scenery is often a great way to recharge the creative batteries. This might include encouraging your team to move their office setup to a new room that has a great view or colourful paintings, or even a complete shift in location to a relative’s house or outside to a park bench. Whatever the choice, the change will be sure to enhance their creative process.   2. Find your creative hours Depending on their role or personal circumstances, members of your team may find the best time to be creative is first thing in the morning or last thing at night before going to sleep. It is important to adjust work hours accordingly to allow for this time, ensuring that the appropriate resources are available when team members are at their peak creativity (even if it is just a pen and notebook on the bedside locker!).   3. Schedule brainstorming sessions Ideas often develop and build in-depth as you discuss them with people either face-to-face or over a video call. Carve out time in your working week to run your thoughts by team members together in one place – either online or in the office together. Encourage healthy discussion and ask for their input and feedback – they may have a unique viewpoint you have not yet considered.   4. Use your commute time When you and your team commute to and from the office, you will often find yourself thinking through a project or solution to a problem. You might jot notes on your phone about a new idea or send an email to yourself to remind you of an important action or next step. If working from home and stuck in a creativity rut, ask your team to recreate this headspace by using the commute time to think by going for a walk or dedicating an hour of their day to deep thinking and creativity.   5. Take time off If team members have the time to take a day (or more) of annual leave, encourage it! Our best ideas often come to us when we least expect them. Taking some personal time to relax will let the mind freely wander and help the team feel rejuvenated and re-energised when returning to work – hopefully with a few new ideas. Whether you are looking to get into that creative mindset or inspire your team members to think outside the box, keep these tips in mind and implement them in everyone’s working day. Most importantly, lead by example – when you focus on creativity and innovation, the people around you will feel motivated to do the same. Mark Fallon is Director and Co-Founder at Coopman Search and Selection

Starting something new or jumping into an old routine after a break can be tough, but Bryan Rankin is here to ease the transition with some information you should know before the new academic year with Chartered Accountants Ireland begins A warm welcome from the Education Department to all our new and returning  students. We hope you find your studies with us challenging, stimulating and rewarding.  For starting students, here is what you can expect in the coming weeks and how you might get off on the right foot. The basics Chartered Accountants Ireland's (the Institute) first year of studies is Chartered Accountants Proficiency One (CAP1) and commences on Friday, 22 September 2023.  Chartered Accountants Proficiency Two (CAP2) will start this year on Friday, 06 October 2023.   Your education is primarily provided online through on-demand learning content and live webinars supplemented by hard-copy textbooks.  This online model allows you considerable flexibility to study when and where it suits you and to balance your work, study and personal commitments.  At the same time, the model is self-directed, so it requires your preparation, commitment and tenacity.  All your learning content is hosted on the Institute's online learning platform, the Learning Hub. It’s where you’ll find all the materials to support your education.   Each subject is broken up into several 'sessions’ covering specific areas of the course. Each session includes slides, video recordings, question and solution packs and plenty of other educational materials.   The week before your programme commences, we’ll email you details on accessing the Learning Hub. Previous students have found the platform easy to navigate and the content very accessible.  Learning  The Institute places a lot of emphasis on ‘active learning’, demonstrating what you’ve learned by attempting questions. You should expect to start working on questions from day one.   It’s a good idea to get into the habit of writing your attempted solutions in Word, as the exam platform you’ll be using in the summer (Cirrus) is similar. Make sure to review the solutions provided with each set of questions carefully.   A lot of the new material will be taught through the Learning Hub, but live webinars are equally important. They are a vital component of every subject and give an important structure to the academic year.   Webinars are two hours long and take place, on average, twice a week, often including Saturday mornings.  For all information on when your live webinars will occur, please check out your programme timetables, available on the Chartered Accountants Ireland website in the ‘Current students’ section.  Our live webinars do not equate to a teaching lecture. Instead, the purpose of the live webinar is to cover the practical application of learning principles.  In the webinar, lecturers will bring you through solutions to exam-standard questions and discuss where students sometimes struggle.  You’ll also be able to ask the lecturers a question through the ‘chat’ function in the live webinar platform. Before every webinar, you’ll be required to have studied the corresponding sessions in the Learning Hub, understood the concepts underpinning the webinar and practised some questions.  If you join a webinar without any preparation, you will find it of very little value and a frustrating experience.  To kick off each of the three academic programmes –  CAP1, CAP2 and FAE – we’ll ask you to attend an induction-style, one-hour lunchtime live webinar.   The CAP1 induction webinar will be on Friday, 22 September, and the CAP2 equivalent on Friday, 06 October.    This webinar is your chance to meet your programme team, during which we’ll talk you through all aspects of your Chartered Accountancy studies and exams.  Given its importance, all students are expected to join this introductory live webinar. Textbooks Our education follows an online model, but you can also expect to receive a full set of academic textbooks from us to support your studies.  Again, approximately two weeks before the start of your programme, we will email you with details of the dispatch of your textbooks, and we’ll confirm your preferred (usually your nominated home) address details.   Networking events You will also have the opportunity to meet fellow students and programme lecturers at one of our in-person induction and networking events in six locations around the island.  These popular events are a great way to learn more about what’s involved in your education programme while also meeting fellow students. Event dates will be available on the Institute’s website.  If you have any queries before starting your education programme with us, please don’t hesitate to email us at studentqueries@charteredaccountants.ie. Bryan Rankin is Head of Student Operations at Chartered Accountants Ireland

Exam prep, study and practising in exam-day conditions are all important to acing your exams. Caelainn McGonigle knows it's important to take care of yourself, as well During your Chartered education, stress is unavoidable. When you experience high levels of stress, it can present itself by impacting physical and mental health.  Below are several steps to mitigate these stressors and give ourselves the best opportunity to excel when it counts. Sleep When we are stressed, it's easy to think of sleep as “time-consuming”, but allowing our mind and body to rest is critical to our success.  By the time we reach exam week, countless hours will have been spent preparing by attending lectures, revising notes and attempting sample papers. Without achieving seven to nine quality hours of sleep a night, we risk restricting our exam performance on the day.  If you encounter difficulties resting in the lead up to your exams, attempt to close the books an hour earlier and reduce screen time before bed. Exercise and fresh air Taking a break to move your body and relish the fresh air enables your mind and body to relax and reset.  Exercise, whether walking, running or cycling, can moderate our stress levels and improve sleep quality.  When heading outside, you might prefer to enjoy the silence of the outdoors, or need a little motivation to move your body, such as listening to a podcast or music – either is excellent for your mind and body as long as you are getting your heart pumping. Nutrition Maintaining nutritional balance in your meals can be taxing when stressed. It can lead us to over-indulge in meals and snacks, or forgo them all together. We must uphold a nutritious diet to aid focus levels and sustain energy.  Meal planning in advance of high-stress periods, like exam week, along with keeping enjoyable snacks to hand, is a sure way to remain fuelled when working hard.  Positive mindset during exams Stress can amplify our emotions. Preserving a positive mindset and prioritising being gentle with ourselves is critical.  It's important to remember the efforts you have made to reach exam season. The groundwork is complete, and it’s time to flaunt what we have learned.  Exams are important, but maintaining our health is a necessity. If you struggle with positivity, try subscribing to a “quote of the day” app or social media page – it may give you the boost you need at just the right time! Reach out If stress is increasing faster than you can handle, reach out to a fellow student, friend or family member.  Alternatively, the amazing Thrive team and the Chartered Accountants Ireland Wellbeing Hub are on hand to offer help and support throughout our journey.  We have excelled through stressful situations in the past. Accept that stress is unavoidable but manageable, and you haven’t come this far only to come this far. Caelainn McGonigle is PR Officer with CASSI and a trainee with Gilroy Gannon

Derarca Dennis sheds light on the pivotal role CFOs and the finance function play in shaping organisations and the growing significance of talent management in their evolving roles The EY Ireland CFO Survey 2023 has found that CFOs and the finance function are playing an increasingly strategic role in their organisations. They are engaging more with other business areas, requiring new skills and an increased focus on talent management. While automation and advanced data analytics capabilities will undoubtedly be critically important in supporting the future role of the finance function, talent retention must remain a key area of focus if it is to fulfil its potential. Forty percent of the CFOs surveyed said their priority for driving growth in the coming year is investing in upskilling existing talent in their organisations, while 34 percent said investing in new talent would be a priority. Investing in diverse talent Continued investment in diverse talent will be imperative given the finance function’s evolving and increasingly business-critical role. The changing nature of finance reporting requires CFOs to master a diversity of skills, especially a deep understanding of non-financial factors. It requires them to make profound changes in the composition of finance teams. Future finance teams will augment their traditional finance skills with environmental, social and governance (ESG) professionals while also containing data analysts, supply chain experts and process engineers. Finance teams will, of course, be finance experts at their core, but they will also draw upon a diverse talent pool to enable the function to play its full role as a strategic partner in the overall business. On a continuous learning curve A culture of continuous learning that empowers employees to work at their best and realise their potential is a proven talent retention strategy. Not only does it deliver increased job satisfaction, but it opens up new career opportunities within the organisation. However, organisations must also seek to automate the dull, repetitive tasks traditionally undertaken by the finance function, allowing finance professionals to focus on more value-added work. Where tasks cannot be automated, CFOs can fill capability gaps by sourcing the required skill sets through professional service partners. These organisations can offer a range of services from basic accounting activities, record-to-report activities and control monitoring and testing, to day-to-day treasury operations, typically on a managed service basis, leaving the finance function to focus on business strategies, forecasting and stakeholder management. Future-fit CFOs To thrive in the evolving landscape, CFOs must consider a holistic approach, which involves: talent management strategies aimed at upskilling existing employees and attracting and retaining recruits; acquiring the diverse skills that will make the finance function fit for its increasingly strategic role in the organisation; leveraging existing capability within other departments to support the finance function; outsourcing or co-sourcing elements of the finance function to external partners on a managed service basis; and stemming employee turnover by ensuring that processes are future-ready and efficient enough to retain talent interest and engagement. A diverse finance function is the future The changing role of CFOs in Ireland and their teams makes it imperative to focus on people management and acquiring and retaining diverse skill sets. Finance functions of the future will encompass a wide array of professionals whose skill sets will contribute to the organisation’s strategic growth. Ultimately, driving greater value for the organisation hinges upon empowering talented individuals with efficient, automated and data-driven processes across financial and non-financial domains. Derarca Dennis is Assurance Partner at EY Ireland

Organisations adopting AI to streamline processes must provide clear guidance to staff on the dos and don’ts of using the technology, writes Moira Grassick Artificial intelligence (AI) has gone mainstream this year. It seems that everyone has a story about how they have used ChatGPT, the generative AI tool, to make their personal or working life easier. From an employer’s perspective, the rapid progress of AI raises difficult questions, however. Although a chatbot on the company website can be a valuable tool for interacting with customers, there are tricky ethical questions and business risks to consider here. Employers are grappling with issues such as whether staff should be permitted to use AI to make their jobs easier, data protection concerns, and whether the outputs generated by AI tools are accurate enough to rely on. For employers, the key risk to assess is the scale of any damage their business might suffer if staff do not use the technology correctly. Many people are familiar with the US lawyer who used ChatGPT to help him prepare a case with disastrous results. The lawyer cited several cases in court filings that were fabricated by AI. The lawyer didn’t consider that the technology would generate fictitious precedents and was unaware that it might produce inaccurate information. To avoid the embarrassment of making a similar mistake, employers can take some prudent actions to protect their business against the risks posed by employees using AI tools. Develop an AI policy To avoid an embarrassing situation like the one suffered by the hapless US lawyer, your business should consider developing an AI policy. This policy can address specific risks affecting your business. Some of the most common issues arising from the use of AI in the workplace are: Protection of confidential client and employee information While many of the tasks that typically involve the use of AI do not pose any obvious risks, employees must be aware that sensitive company data should not be accessed by AI tools. AI tools analyse vast amounts of data to generate responses to queries, and it’s important that no personal information about your employees or customers is disclosed. If an employee submits confidential information to ChatGPT or any other AI tool, your business is exposed to a range of privacy, commercial and data protection risks. Your AI policy needs to clearly define what types of data employees can submit to AI tools. Intellectual property risks You also need to consider intellectual property risks. If your business publishes content online, it is important to ensure that AI-generated content is not subject to copyright. AI tools typically do not cite the sources of the content they create. Instead, the AI tool may generate output by using existing content that appears on the internet rather than producing original work. Organisations, therefore, cannot check if the publication of AI-generated content will breach someone else’s intellectual property rights. If AI generates someone else’s content, and an organisation publishes it as its own, it is open to reputational damage for plagiarism. Safeguarding the organisation With AI becoming mainstream, now is the time to start preparing your AI policy. To get the most out of AI technology, you must inform staff about how to use the tools responsibly. With a strong policy in place, you can ensure your business can reap the benefits of this powerful new technology while safeguarding your operations against confidentiality, intellectual property and data protection risks. Moira Grassick is Chief Operating Officer at Peninsula Ireland

Safeguarding your organisation’s systems and data against cybersecurity risk is crucial. Mark Butler explores how you can use training to help fortify your defences Safeguarding sensitive information and data is now of paramount concern for businesses across the globe. Irish businesses are no exception. For example, the Health Service Executive was the victim of a high-profile cybersecurity breach in 2021. Virgin Media Television also suffered an “unauthorised attempt” to access its systems in February 2023, disrupting its services. As the adage goes, “A chain is only as strong as its weakest link.” Typically, that link often happens to be an unwitting employee. That’s where comprehensive cybersecurity training and awareness programmes come into play, serving as the bedrock of a resilient defence strategy against cyber threats. Creating a culture of security Effective cybersecurity training and awareness programmes are not just a checkbox exercise; they are the building blocks of a cybersecurity culture that must permeate every corner of an organisation. The entire business ecosystem benefits when employees are well-informed and empowered to recognise and respond to potential threats. There are several steps organisations can take to ensure cybersecurity best practice. 1. Addressing diverse threats The first step in crafting a robust cybersecurity training programme is recognising that threats are diverse and constantly evolving. Tailor training modules to address various risks, including phishing and social engineering. Irish businesses should collaborate with cybersecurity experts to develop engaging, scenario-based training that mimics real-world situations. This approach allows employees to practise identifying and responding to phishing attempts and other threats in a controlled environment. 2. Password management Password hygiene is a fundamental pillar of cybersecurity. Educate employees about the significance of strong, unique passwords and the criticality of regular updates. Encourage the use of password managers to simplify this process and discourage the reuse of passwords across multiple accounts. By instilling good password practices, businesses can significantly reduce the risk of unauthorised access. 3. Identifying and avoiding phishing attempts Phishing attacks remain a pervasive threat, often exploiting human psychology to trick employees into divulging sensitive information. Train employees to scrutinise emails, especially those requesting personal or financial data, by encouraging them to verify the legitimacy of requests through alternative means of communication before taking action. Emphasise the tell-tale signs of phishing, such as mismatched URLs, generic greetings and urgent demands. 4. Navigating digital safety Safe internet usage is not a mere suggestion but a core principle of cybersecurity. Provide guidelines for secure browsing, avoiding suspicious websites and refraining from downloading attachments or clicking on links from unknown sources. Equip employees with the knowledge to identify malicious websites and teach them to recognise secure connections through the HTTPS protocol. 5. Continuous learning and simulated exercises Effective cybersecurity training is not a one-time event; it’s an ongoing process. Regularly update training materials to reflect new threats and techniques employed by cybercriminals. Implement simulated phishing exercises to assess employees’ ability to apply their training in real-world scenarios. These exercises not only evaluate readiness but also serve as valuable learning experiences. Knowledge is power Fostering a culture of cybersecurity hinges on implementing comprehensive training and awareness programmes. Businesses can significantly reduce the risk of breaches and data loss by equipping their team with the tools to recognise and respond to threats. Investing in cybersecurity education is an investment in the long-term resilience and success of the organisation. In a digital landscape, knowledge is power, and empowered employees are the first defence against cyber threats. Mark Butler is the Managing Partner at HLB Ireland

Following the release of two new standards by the International Sustainability Standards Board, Linda McWeeney outlines what companies can do now to prepare for their application The International Sustainability Standards Board (ISSB) has released two sustainability standards. It will be for jurisdictional authorities to decide whether to mandate use of the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards, consistent with the approach taken for IFRS Accounting Standards issued by the IASB. These will be effective for annual reporting periods on or after 1 January 2024. The main aim of the new ISSB sustainability standards (S1 and S2) is that, initially, companies will provide reasonable and supportive information with regard to sustainability. The ISSB has provided reliefs and guidance. Year one requirements Even though there will be a requirement to provide sustainability reporting information along with the financial statements, companies can hold off on this reporting in year one and align it with their half yearly reporting where necessary.  There will also be no requirement for comparative information in year one. Companies using different methods can continue to use these methods for measuring scopes for the first year and will continue to align methods with the Greenhouse Gas (GHG) Protocol.    S1 and S2 will not be entirely new to many companies as they have been developed and built on the Task Force on Climate-related Financial Disclosures (TCFD) framework and Sustainability Accounting Standards Board (SASB) standards.   Investors and regulators demand and need high-quality, comparable information about risks and opportunities in relation to climate change in particular.   TCFD disclosure recommendations The TCFD sets out disclosure recommendations based upon core elements around which companies operate. These are: Governance Strategy Risk management Metrics and targets The disclosure recommendations are structured around these four elements. This information should help investors understand how the relevant reporting organisations think about and assess climate-related risks and opportunities: Governance Companies need to describe the board’s oversight of climate-related risks and opportunities.   Processes need to be in place to identify climate-related issues and boards need to be kept informed regularly on these issues. Climate needs to be part of the company’s strategy, policies, plans, budgets, goals and targets. Strategy Companies need to be able to describe the climate-related risks and opportunities and their impact on the organisation’s businesses, strategy, and financial planning. Risk management Processes need to be in place for identifying and assessing climate-related risks. How significant climate-related risks are in relation to other risks should be discussed and analysed. Boards should consider regulatory requirements related to climate change and how to mitigate and control material risks. Metrics and targets Metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process should be disclosed.  GHG emissions should be calculated in line with the GHG Protocol methodology to allow for aggregation and comparability across organisations and jurisdictions.  Reporting on emissions Companies are required to report on emissions. Direct emissions are generated from sources owned and controlled by the reporting company – e.g., transport fuels, heating fuels and fugitive gases or emissions of GHG associated with particular manufacturing processes. These emissions are classified as scope 1.   Indirect emissions are also generated as a consequence of the activities of the reporting company—but occur at sources owned or controlled by another company. These include scope 2 and scope 3 emissions.  Scope 2 includes the emissions associated with the purchase of electricity, heat, steam and cooling. Companies can identify these energy uses on the basis of utility bills or metered energy consumption at facilities within the inventory boundary.  The ISSB has agreed that a company disclosing scope 2 emissions would use the locations-based approach, which emphasises the connection between consumer demand for electricity and the emissions resulting from local electricity production.  Within a particular geographic boundary and over a specified time period, electricity output is aggregated and averaged.   Scope 3 emissions include entire value chain emissions. The majority of total corporate emissions fall under this scope from the goods it purchases to the disposal of the products it sells. While Scope 1 and 2 emissions are within the control of the company as they are operational, scope 3 emissions raise business development and strategy questions pertaining to products and services.   Companies using different methods can continue to use these methods for measuring scopes for the first year and will continue to align methods with the GHG Protocol.      Companies can also continue to be guided by the Global Reporting Initiative (GRI) and European Sustainability Reporting Standards (ESRS) to help assess and take responsibility for their impacts and contribute to a more sustainable future using a multi-stakeholder and investor-focused approach. Next steps The standards will be effective for annual reporting periods on or after 1 January 2024 and individual jurisdictions will decide whether and when to adopt the IFRS Sustainability Disclosure Standards. The ISSB has stated that it is working closely with jurisdictional standard setters to maximise interoperability between its standards and incoming mandatory reporting frameworks including the European Commission with their European Sustainability Reporting Standards (ESRS), and the US Securities and Exchange Commission. Linda McWeeney is Non-Executive Director and Senior Lecturer in Accounting and Finance at Technological University Dublin

In a world where social connections fuel success, extroverts hold a natural edge. Jean Evans explains how they can supercharge their networking through authentic and considerate interactions Extroverts have a natural advantage when it comes to networking. They thrive in social situations and are energised by interacting with others. Extroverts get their energy from other people. Extroverts are the quintessential social butterflies. They can easily dominate a room and a conversation. This can be intimidating for people who identify as shy or as shy introverts. However, even for extroverts, effective networking requires some strategies and considerations. Leverage your strengths Extroverts have a natural ability to engage in conversations and connect with people. They should use their outgoing personality to their advantage by initiating conversations and showing genuine interest in others to make them comfortable. Become an active listener While extroverts enjoy talking and sharing their thoughts, it’s important to remember that networking is a two-way street. Extroverts should practise being active listeners, asking open-ended questions, and giving others their full attention to build meaningful connections. Offer help and support Extroverts can make a lasting impression by being genuinely helpful and supportive to others by sharing their knowledge, expertise or resources whenever possible. When people genuinely desire to help others, they increase the likelihood of being remembered and having a favour reciprocated. Follow up After meeting someone, the extrovert should take the initiative to follow up and nurture the connection. Send a personalised email, connect on social media or schedule a coffee meeting to continue the conversation. Effective networking requires ongoing effort and relationship-building. Attend to body language Extroverts can easily express their enthusiasm and energy through their body language. However, they should also be mindful of subtle non-verbal cues, such as maintaining eye contact, smiling and having an open posture. These signals convey approachability and engagement. Numbers matter Setting a goal and being intentional about attending networking events is crucial. Extroverts can manage meeting more people without depleting their internal battery, but successful networking is not about meeting as many people as possible. It’s about having meaningful conversations that can lead to further meetings.  You don’t want to meet more people than you can realistically follow up with after the event. Meet only three to five people per event. Networking as a long-term investment Remember that effective networking is a long-term investment, and it’s about building genuine connections rather than collecting business cards.  Networking is a marathon and not a sprint. Extroverts can leverage their social nature by making meaningful connections and expanding their professional network. Jean Evans is Networking Architect at NetworkMe

Despite mounting scepticism, financial trends suggest that ESG is here to stay even if it is under a new name. Dan Byrne explains why You’d be forgiven for doubting the staying power of the environmental, social and governance (ESG) movement given the current wave of negativity. After all, the stories of pushback are mounting.  Granted, most are coming from the US. Republicans and fiscal conservatives are openly hostile to the term. They are led by people such as Texas Governor Greg Abbott and Florida Governor/presidential contender Ron DeSantis, who dismiss the concept as “woke capitalism”, restricting business and harming profits.  But the old saying still has weight: “If America sneezes, the world catches a cold.” It’s enough negativity to make investors more wary of ESG, and boards wonder whether they need to bother with it. Is this backlash a legitimate threat to ESG? Not from where we’re standing. Follow the money The main reason ESG will survive the backlash is that the money simply isn’t following the rhetoric. ESG critics can be as loud as they want, but they’re not making the corporate world think differently.  Two-thirds of respondents to a 2023 Bloomberg survey expect firms to continue incorporating ESG metrics into their business.  Meanwhile, financial services firm Morningstar Inc. has released new data showing that the success of anti-ESG funds has fallen dramatically from its peak in the third quarter of 2022. This peak was minor compared with the total value of ESG assets.  In other words, ESG priorities remain fixed, and the money working against them is dwindling.  The only thing likely to suffer from this wave of negativity is the actual term: ‘ESG’. Rechristening ESG The true measure of the longevity of ‘ESG’ is that many in the pro-ESG camp are willing to part ways with the term. Larry Fink, head of BlackRock Inc, has said he no longer uses it because of how politicised it has become. Even McDonald’s has done away with it. Meanwhile, the same two-thirds of respondents to the Bloomberg survey said that while firms would keep pursuing ESG, they would stop using the acronym.  But none of these groups are abandoning the principles underpinning ESG.  You might call it the one potential victory of the anti-ESG brigade: a rechristening – purely because firms are worried about reputational risk. Before the current backlash, it was estimated that the value of ESG assets would reach US$50 trillion by 2025. At the start of this year, they were estimated at $41 trillion and growing.  If, in five years, we’re calling ESG something different, it probably won’t dent the underlying principles that investors, consumers and many politicians care so vocally about. So, while the ESG backlash may be loud, we’re not seeing any evidence that its principles are losing ground.  Hence, directors and other corporate leaders hearing the noise from the US and thinking the concept is almost irrelevant should think again.  ESG remains ESG, even if its name changes. Dan Byrne is a journalist with the Corporate Governance Institute

Diversity is not just about race and gender. Andrea Dermody explores the benefits of embracing neurodiversity in the workplace, fostering inclusivity for all employees Research indicates that a significant portion of the global population – 15 to 20 percent – are neurodivergent, with distinct cognitive processes. This encompasses conditions such as attention deficit disorders, autism, dyslexia and dyspraxia, adding a unique dimension to workplaces. Despite growing emphasis on diversity, equity and inclusion (DE&I), the employment prospects and support for neurodivergent individuals remain inadequate. As a result, neurodivergent individuals often experience higher rates of unemployment compared with the general population. However, when organisations attract and retain neurodiverse talent, the benefits can be far-reaching. Benefits of a neurodiverse workforce A neurodiverse workforce can bring many benefits to an organisation: Increased creativity: Neurodiverse individuals often have unique perspectives and ways of thinking, which can lead to innovative ideas and solutions. Enhanced problem-solving skills: Neurodiverse individuals may approach problems differently from their neurotypical counterparts, which can lead to more effective problem-solving and decision-making. Improved productivity: By tapping into the strengths of each individual on the team, a neurodiverse workforce can be more productive and efficient. Deloitte research suggests that teams with neurodivergent professionals in some roles can be 30 percent more productive than those without them. Better employee retention: When organisations embrace neurodiversity, it creates a more inclusive and welcoming environment leading to higher employee satisfaction and retention rates. Enhanced customer relationships: A neurodiverse workforce can help an organisation better understand and meet the needs of diverse customers, leading to improved customer relationships and increased sales. Attracting and retaining neurodiverse employees To ensure the success of neurodivergent workers, Deloitte suggests the following three approaches: Revisit the hiring process: Consciously hire from diverse sources and consider how the hiring process can be made fairer by reducing artificial intelligence or natural human bias. The interview process may also require tweaking. Consider moving from abstract questions to accessing specific skills and experience, and do not assume that everyone will connect the dots the same way. Create a conducive work environment: Everyone has different working styles, but managers should consider how individuals work best and what accommodations can be made. This may be as simple as adjusting communication styles, providing workplace mentors, or considering how flexible work policies can be expanded. Provide tailored career journeys: Many organisations do not have specific policies to support neurodivergent talent. Clearer policies ensure that everyone understands them in the same way, and unspoken rules that some neurodivergent workers might otherwise miss should be codified. Tailored career paths should therefore recognise the goals, capabilities and strengths of the individual – whether neurodivergent or neurotypical. The halo effect What’s clear is that what organisations do to provide an inclusive environment for their neurodivergent workforce can have a halo effect on the entire workforce. These ‘universal accommodations’ are adjustments that benefit all employees, jobseekers or customers and make the workplace a better, safer, more inclusive place for everyone. Andrea Dermody is a diversity and inclusion consultant at Dermody

Irish organisations face geopolitical tensions, pandemic aftermath and new work norms. Boards must intensify governance, risk and compliance focus for resilience amid rapid change, says Ivan O’Brien Irish organisations are operating in a rapidly changing business environment. The war in Ukraine, the lingering aftermath of the pandemic and the shift to new ways of working all give rise to unknown risks, including cybersecurity threats. Boards must respond with an intensive focus on governance, risk and compliance (GRC) to achieve organisational goals during increasing uncertainty. Boards should view these challenges as opportunities to verify the effectiveness of existing GRC arrangements, foster continuous improvement efforts and drive progress toward a holistic GRC management system environment that helps drive long-term value and resilience. Keep reporting on track The board’s role is to monitor management’s performance against the organisation’s strategic objectives and understand how risk and uncertainty impact the organisation’s ability to achieve those objectives. Regular, timely and comprehensive management reporting allows the board and the audit committee to continuously monitor the design’s appropriateness and the GRC systems’ effectiveness. The COVID-19 pandemic, in particular, has demonstrated the importance of GRC systems for addressing critical situations, such as health risks, business interruptions, breakdowns in supply chains and financial losses. As a result, organisations have had to act fast and, in many cases, rethink their operational resilience approach. Data breaches pose regulatory and reputational risks to Irish and European organisations. Organisations with insufficient security solutions to protect their systems, networks and data can be fined up to €20 million or 4 percent of their annual global turnover under the General Data Protection Regulation (GDPR). The need for integrated GRC systems Overall, the events of the last several years have highlighted the necessity for organisations to adopt integrated GRC systems to achieve organisational goals, effective emergency management and a culture of integrity during times of uncertainty. By adopting integrated GRC systems, organisations are more likely to respond and recover effectively from crises and transform potential problems into business advantages. Failure to adopt an integrated approach to GRC can undermine the board’s ability to provide adequate oversight on risk and controls and lead to potential exposures that could jeopardise the organisation’s ability to continue as a going concern. This needs to be supported by an effective exchange of GRC-related information within the organisation through a board risk or GRC committee, for example. There is guidance available to boards who wish to improve GRC performance. In April 2021, the International Organization for Standardization (ISO) published a new certifiable standard for compliance management systems – ISO 37301. The standard explains how organisations should implement GRC management systems to satisfy international legal norms and regulations. Implementing ISO 37301 provides assurance that risks are regularly assessed, business partners are screened, and the organisation has a working system to raise concerns. It is committed to improving its systems to deal with non-conformance. Boards can also use the COSO Enterprise Risk Management Framework to evaluate their organisation’s approach to risk management. Developed by the Committee of Sponsoring Organizations of the Treadway Commission, the principles-based framework enables boards to identify all the components of a comprehensive enterprise risk programme. Building resilience Regardless of the model employed, effective GRC management systems rely heavily on the expertise of the internal audit and risk management functions. The scale and increasing complexity of the current risk landscape demands knowledge sharing at every level of the organisation. Boards should, therefore, challenge management to invest in the resources and technological tools required to improve shared risk intelligence throughout the business, to build an even more resilient organisation capable of driving long-term value and withstanding the challenges that lie ahead. Ivan O’Brien is Consulting Partner and Head of Risk at EY

Amid fierce competition, businesses must harness the cloud’s potential cost reduction. FinOps aligns spending with goals, yet pitfalls in adoption must be sidestepped, advises Liam Cotter Cloud computing continues to revolutionise how businesses innovate and grow in today’s hypercompetitive global environment. While the race to the cloud has catapulted businesses into a new realm of speed and agility, few are cashing in on the cloud’s promise to drive down costs – and the challenges are mounting amid the proliferation of multi-cloud environments. The problem is typically a case of too much spending and too little oversight. Businesses are struggling to effectively manage a critical new resource vastly different from the legacy environment it replaces. There is no question that organisations need a radical new approach to managing their cloud spending. The answer? FinOps. With FinOps (the combination of ‘Finance’ and ‘DevOps’), teams from IT, finance and business units collaborate on data-driven spending decisions. Transparency is prioritised, and everyone takes ownership of their cloud usage. FinOps aligns cloud spending with business objectives and helps cross-functional teams work harmoniously to enhance financial control and predictability, reduce friction, and deliver products and services faster in today’s consumer-centric digital economy. However, there are five critical mistakes organisations make when embracing the power of cloud capabilities. 1. The lack of a clear, strategic vision that aligns KPIs with outcomes Success on the FinOps journey inevitably requires measuring, reporting, analysing and optimising cloud spending. Taking a strategic approach to FinOps means keeping objectives and key performance indicators (KPIs) front and centre at all times – continuously revisiting, adjusting and evolving them as required. Businesses should monitor and respond to new business data and make changes, particularly in today’s fast-evolving environment, where the rapid pace of change continues to accelerate. 2. Not understanding costs and trends at a granular level You can’t measure what you can’t see, making a precise, granular view of cloud costs and trends critical to your business. It’s not enough to know your cloud spend at any moment – positioning your business to manage and reduce costs continually is essential. Amid a lack of data that continually delivers timely cloud spend and usage insights, businesses often make significant cloud investments while unsure what they are accomplishing or how to manage costs. Observability is essential to success – gaining visibility into where your cloud spend is going, monitoring activity at a granular level, and responding as needed as workloads and objectives change. This visibility can empower your data teams with precise allocation, real-time budgeting information and accurate forecasting for cost governance. 3. Not using appropriate tools, technologies and tagging FinOps’ success, apart from calculating and gathering timely data, also requires visibility of assets through IT asset management and the use of appropriate tools, technologies and tagging, including automation capabilities. Unfortunately, many businesses with multi-cloud environments use tools and capabilities provided by their cloud vendors with little to no benefit. Improper and inconsistent tagging of resources and a lack of appropriate automation can hinder success. Trend-based forecasting is an appropriate method for simpler situations in which past trends will likely continue. It helps answer questions such as “What would monthly cloud spend be in a future month given the spending trend observed to date?” 4. The lack of collaboration between finance and engineering teams A successful cloud journey relies on FinOps and the engineering team working closely together. While FinOps can manage processes and budgeting, this will likely not prove successful if engineering doesn’t agree to take the right actions. Cross-training of teams and organisational change management to create a highly collaborative approach among diverse teams is critical for FinOps to deliver ongoing value. 5. Not taking action, communicating and optimising Your business may have the necessary metrics, tools and technologies for a successful FinOps journey and be well-positioned to identify problems as they arise. However, a strategic action plan is essential; one that provides appropriate guidelines that bring the required players together to understand the problem and its implications, manage the issue and set the course for a future strategy that can optimise processes and costs. An intelligent approach is to manage by the numbers. These are the components required to help build a governance programme that positions you to do so: Reports and dashboards: Ensure all stakeholders have access to appropriate reporting and dashboards for their role and provide rapid, at-a-glance views into current cost trends and forecasts. Resource hierarchy: Structure cloud resources in a resource hierarchy that is granular enough for management and cost allocation using folders, projects, tags, labels, etc. Budget alerts: Set budget notifications that are triggered automatically when resources or costs ramp up beyond a predetermined threshold to help prevent unexpected activity impacting budgeted spending. Automated actions: Configure automated actions to throttle resources or cap costs to help prevent unwanted activity and overspending. Standard reviews: Establish standard review cadences between IT and finance to review historical spending and develop future action recommendations. FinOps’ success requires bringing engineering and finance stakeholders together to plan, measure, report, analyse and optimise costs. It’s not enough to simply implement new tools, communicate a few expectations and occasionally meet for updates. A holistic operating model should be designed, implemented, orchestrated and evolve as new tools, techniques, ways of working and other factors emerge with time. Liam Cotter is a Management Consulting Partner at KPMG

As back-to-school season approaches, employers can aid parents with flexible work options that foster work-life balance and increased productivity, explains Gemma O’Connor The back-to-school season is nearly underway as kids and parents prepare for the new school year. This can be a busy time for working parents, particularly for parents of children facing a milestone like starting primary or secondary education. So, what can employers do to help staff balance their home and work lives? Communicate with your staff Most employees should be able to predict when they might need extra flexibility to help their children settle into their new surroundings. Different employees will have different requests depending on their child’s level of education. As each employee will have different requirements, there is no silver bullet for managing this situation other than to ensure that you listen to staff and make efforts to accommodate any supports they request. Consider flexible work options If an employee requests flexibility during back-to-school season, consider it and what solution might work best for both parties. Some solutions could include: Working from home on certain days; Early finishes/late starts on certain days; Compressed hours; and Staggered hours. While you have no obligation to grant requests for flexibility, a blunt refusal to accommodate working parents increases the likelihood of alienating employees. Employees who feel let down by their employer are also likely to spread the news of their bad experiences, resulting in reputational damage and hindering your recruitment and retention efforts. Treat people fairly If only working parents are granted flexible work options during the school year, you also risk frustrating employees who don’t receive comparable benefits just because they don’t have children. It’s important to avoid granting privileges to parents only. If you provide benefits to working parents based on promoting work-life balance, you should extend the same flexibility to staff who need to care for an elderly parent or a spouse who’s ill, for instance. If you operate your workplace on the basis that everyone will need flexibility at one time or another, all staff will buy in and the organisation will avoid employee unrest that could develop if only working parents enjoy flexible work options. Prepare for new workers’ statutory rights The Work Life Balance Miscellaneous Provisions Act 2023 has been partially in force since 3 July. Once fully in force, this new piece of employment legislation will introduce five statutory rights for employees to foster a better work-life balance and to support staff with caring responsibilities. In summary, the Act introduces the following rights: Five days’ unpaid leave for medical care purposes for parents of children under 12 and carers; Five days’ paid leave for victims of domestic violence; The right to request flexible working for parents and carers; The right to request remote working for all employees; and The right to breastfeeding breaks extended to two years from the date of the child’s birth. Employers should be ready to receive requests from employees in line with this employment law scheduled to come into effect in full this autumn. Find balance Recognising the needs of working parents during the back-to-school period is crucial for fostering a supportive and inclusive work environment. Working parents often encounter added responsibilities as schools reopen, from adjusting schedules to managing childcare. By understanding these challenges and providing flexibility, employers can mitigate stress, enhance employee well-being and maintain productivity. Acknowledging the unique demands of working parents (and extending the same benefits to non-parent employees) promotes a harmonious balance between professional duties and family responsibilities. Gemma O’Connor is Head of Service at Peninsula Ireland

In the digital age, cyber threats redefine business acquisitions. Mark Butler explores four reasons for prioritising cyber security due diligence, ensuring informed decisions and resilience When considering the purchase of a business, it is essential to conduct a comprehensive assessment of potential risks. Technology risks, particularly cyber threats, have become increasingly significant in today’s digital age. Therefore, prioritising cyber security as part of the due diligence process is crucial to gain a complete view of potential risks, allowing you to make informed decisions and plan accordingly. There are four compelling reasons why a cyber security audit should be a priority in the due diligence process when buying a business. 1. Assessing the business’s technology infrastructure The technology infrastructure of a business plays a vital role in its operations. Cyber security due diligence provides valuable insights into the robustness of the existing infrastructure, including networks, systems, software and hardware. By assessing the vulnerabilities and weaknesses within the technology stack, you can better understand the potential risks and associated costs of upgrading or securing the infrastructure post-acquisition. This knowledge allows you to make informed decisions about the integration process and develop a strategic technology roadmap. 2. Safeguarding sensitive data During a business acquisition, you gain access to the target company’s data, including client information, intellectual property, financial records and employee data. Conducting cyber security due diligence allows you to evaluate the effectiveness of existing security measures that protect this sensitive information. Identifying vulnerabilities and potential data breaches early on can help you implement necessary safeguards and protect the integrity and confidentiality of critical data assets. 3. Mitigating financial and legal risks A cyber security breach can have significant financial and legal consequences for a business. By conducting due diligence, you can identify potential risks that may result in financial loss, such as data breaches, regulatory non-compliance or legal liabilities. Understanding these risks beforehand enables you to negotiate appropriate terms in the acquisition agreement, allocate resources for remediation, and potentially even adjust the purchase price to account for any necessary investments in cyber security. 4. Maintaining business continuity and reputation A successful business acquisition hinges on maintaining continuity and preserving the target company’s reputation. A cyber security incident can disrupt operations, damage customer trust and tarnish the brand image, resulting in financial losses and decreased market value. You can identify potential threats and develop a robust incident response plan by conducting cyber security due diligence. This proactive approach ensures that the necessary measures are in place to minimise the impact of any cyber security incidents and protect the business’s continuity and reputation. Cyber security has become an essential aspect of business risk management in today’s interconnected world. When buying a business, prioritising cyber security within the due diligence process allows you to comprehensively assess technology risks, safeguard sensitive data, mitigate financial and legal risks, assess the technology infrastructure, and maintain business continuity and reputation. The due diligence process is a critical time to ensure you fully understand all potential issues, especially technology, allowing you to address risks and, in turn, plan to deal with them proactively. Mark Butler is Managing Partner at HLB Ireland