Julia Rowan answers your management, leadership and team development questions I feel I need to constantly prove myself, meaning I work very long hours. I spend hours drafting reports, checking other people’s work and preparing for meetings. I’ve been aware of this for a long time and my boss and others tell me that I don’t need to do it, but I don’t seem to be able to change. First, it’s important to acknowledge that changing our behaviour and habits can be really difficult. For you, it sounds like there is an unaddressed fear (possibly unconscious) at play here.  A great way to become conscious of what is unconscious is to write about it. Whether you feel very stressed or just a bit anxious, stop what you are doing and write about what is happening and how you are feeling. Then keep writing and see what comes up.  You are not attempting to analyse or rationalise what is happening—you are simply describing it to see what thoughts arise.   Over time, your fears will come out in your writing. Our fears can seem ridiculous—”people will laugh/I’m letting the side down/they’ll find me out”—so we hide the fear, letting it have all the power.  By getting the fear down on paper, we lessen its power and then we can interrogate the fear—”when is the last time people laughed at me/I let the side down?”.   In my experience with clients, they don’t have any examples. In fact, they will often come up with examples of the opposite: “people took me seriously, I was complimented for my contribution”.  If acknowledging and addressing the fear through writing doesn’t enable you to change your habits, it may be worth talking to a professional to help you through it.  I am heading up a cross-functional project team which will have high-level impact. People turn up for meetings, the discussions are constructive and polite, but there is little or no follow through. Everyone is very busy, but getting this project over the line is one of my key objectives and I worry I might fail. Many factors could be causing this blockage, including people’s core responsibilities, personal motivation, support for the project objectives, commitment to the project, team norms that have been formed, or your chairing style, etc.  I suggest that you organise a meeting to examine the progress on this project, face-to-face, in a nice room. This gives you the opportunity to have a very open discussion with the team. You need to lean into the reality of what is (and is not) happening and get very curious. Leave any hurt or defensiveness aside. The usual ‘stop, start, continue’ approach may be useful to get the conversation going. Make sure to pay attention to what is working. This gives people the psychological permission to address what’s not.   You may need to go a bit deeper and explore some of the issues mentioned above, which may feel awkward. Design the process so that people feel safe answering the questions—getting small groups to explore questions, for example, or providing post-its and pens for people to write. Even if you feel a bit hurt by some of the feedback, lean into it.  If the project is paramount, getting support from HR or a professional could be useful either in helping you to prepare or in running the session for you. Julia Rowan is Principal Consultant at Performance Matters, a leadership and team  development consultancy. Email questions to julia@performancematters.ie

A decade of low interest rates has come to an end and companies are facing a much-altered lending landscape. David Martin offers his advice on negotiating with banks and alternative lenders in the current economy The Irish economy has faced many headwinds over the past year, but three key developments have had the most impact, namely: rising interest rates; rising inflation; and fluctuating energy prices. Together, these challenges have made life considerably harder for borrowers tasked with balancing existing debt and new debt requirements with banks and alternative lenders.  Up until recently, the world since 2010 had seen very low interest rates. This allowed some companies to borrow money at very cheap rates and use debt as a mechanism to finance business growth. While we are still seeing a healthy appetite from both domestic and international lenders for funding new debt requirements and refinancing, lenders now face tighter credit conditions, delayed decision-making, and a notable shift in sentiment.  Borrowers are also facing difficult trading conditions, resulting in cases of: actual or potential breached covenants;  issues in meeting debt obligations and therefore potential default; funding deficits against their business plan; and  refinance risk. Debt plan for discussions with lenders For borrowers, there are several factors to consider when putting together a debt plan. Working with a professional adviser, companies should factor the following points into their plan. Present data early Presenting “self-help” data (evidence to prove that the organisation has considered all options) to the lender at an early stage is crucial for both traditional and real estate companies, regardless of whether they are looking for new debt, refinancing, or dealing with covenant breaches. By presenting a critically assessed recast set of numbers with robust assumptions, lenders are more likely to provide covenant waivers or recast covenants. This plan should be put together after you consider the following “self-help” measures: Enhancing revenue and portfolio optimisation: identify and remove loss-making products and services; Price: understand and demonstrate what costs can be passed on to the end user; Improving margins: demonstrate to the lender how  margins have been improved and mitigated against rising costs; Productivity and efficiency improvements: ensure costs are controlled; Labour cost management: deliver an employer value proposition to manage wages and retain talent; Policy optimisation: reduce cost base through regulatory and government supports. By presenting a critically assessed recast set of numbers with robust assumptions, lenders are more likely to provide covenant waivers or recast covenants. Be proactive with stakeholders In addition to presenting early to lenders, commence discussions with Revenue and other creditors/stakeholders in a timely manner to set out appropriate plans. Engaging with customers is also essential to fully understanding the receivables timelines. Forecasts, covenants and debt requirements It is important to demonstrate the impact of any self-help measures the company has taken to bolster forecasts for the business and how they might impact financial covenants (for existing borrowers) or projected covenants (for a new borrower). The self-help measures and the financial model outlining forecasts should result in a comprehensive understanding of the organisation’s funding requirement, which in turn helps to identify what the debt ask from the lender is. Further, organisations should access their facility agreements to ensure full understanding of: terms and conditions of lending documents including all covenants;  what the covenant headroom is; and  all events of default that are in the lending documents. Once funding requirements have been established, being able to demonstrate to a lender how they are getting repaid is a key part of the negotiation.  While banks and most debt funds will usually expect repayment to come from the free cashflow of the business, some debt funds and special situation funds will look at repayment from other sources, including the sale of assets, partial disposals and other liquidity events. Additional sources of capital  Some companies carry a high net debt to earnings before interest, taxes, depreciation and amortisation (EBITDA), high loan to value, and low interest coverage ratio.  A review of the capital structure of the company and these key leverage ratios, as well as the ability to service principal and interest, will be a key determinant in understanding if other sources of capital might be needed to meet funding objectives in the short-, medium- and long-term.  Consider too if there are other sources of capital from existing debt providers or other debt and equity providers. Regular review  Ensure that cashflow and revised strategy is kept under regular review and the requirement for additional sources of capital is reviewed on a continuous basis. It is key to stay up to date with government supports available for organisations. Examine your hedging policy against best practice and make sure to regularly review it. Recovery  Crucially, at the presentation with a lender, you must demonstrate—through restatement of cashflows and plans (where applicable) for additional sources of capital—that the organisation is on the path to recovery and the lender will get full repayment. Debt solutions When negotiating with your lenders, it is worth considering the range of options from overseas, which may be helpful.  Despite the previously outlined headwinds, there are numerous international lenders that view Ireland as an attractive destination for debt transactions.   Previously, many companies saw their debt solution as a ‘bank v alternative lender’ solution.  However, there are several companies whose banks work alongside alternative lenders, working capital specialists, private placement and bond issuers, thereby demonstrating that different debt solutions can co-exist for companies.  The growing pool of lenders results in a more competitive landscape and choice for the borrower, increasing their debt options.  And while having a mix of lenders attracts different terms and conditions for different funding needs, it can result in the diversification of refinance risk—an important criterion in any debt negotiation. Some of the types of debt companies should consider include: Growth finance, e.g. expansion; Acquisition finance, e.g. buying another business; Real estate specialist lenders, e.g. development and/or acquisition; Refinance, e.g. amending or extending existing debt; Recapitalisation, e.g. capital structure optimisation; Special situation, e.g. liquidity funding; Private placement, e.g. long-term debt. The economic headwinds we are currently facing are likely to continue as the year progresses. Indeed, the lack of certainty with respect to inflation and ongoing geopolitical events has led commentators to predict further interest rate hikes in the Eurozone in 2023.  Whether or not your business is over-leveraged, a well thought out debt plan could help you to access the numerous debt structures and lending options available to Irish companies in the market.  David Martin is Partner and Head of Debt Advisory at EY Ireland

Western perceptions of Central and Eastern Europe are shifting, sparking far-reaching change inside NATO and the EU. Judy Dempsey explains why The European Union is changing, and so is NATO. While these changes may not be immediately discernable, they will have repercussions for EU policies, not just in relation to Ukraine and Eastern Europe, but also Russia.  And they will have a lasting impact on NATO, as it focuses increasingly on defending the Baltic States and other Central European members. Russia’s brutal war against Ukraine is the catalyst for these shifts, which have several aspects, not least those rooted in the historical and political differences between Western and Central Europe.  The Soviet totalitarian system was imposed across Eastern and Central Europe after 1945, while their Western counterparts benefited from reconstruction efforts under the Marshall Plan.  Western Europe built this part of the continent on the foundations of prosperity, democracy and a peace project embodied by the European Steel and Coal Community, the precursor to the EU.  It wasn’t until the fall of the Berlin Wall in 1989, and subsequent collapse of the Soviet Union, that Central Europe came back to Europe. The dream of a Europe “united and free” was finally realised, in theory at least.  And herein lies the basis for another shift brought home by the war in Ukraine. Central Europe has never trusted Russia’s intentions, whether in Belarus, Georgia, Moldova, or Ukraine.  They warned their Western European counterparts about the consequences of Russia’s invasion of Georgia in 2008, how Germany’s dependence on Russian gas would give the Kremlin a geostrategic weapon to divide Europe, and how Russia’s first invasion of Eastern Ukraine in 2014 would not stop there.  All the while, several West European countries played down such fears, even suggesting that the Central European attitude towards Russia was outdated and just plain anti-Russia. It was time to move on. Poland and the Baltic States can now confidently say “we told you so” following Russian President Vladimir Putin’s Ukraine invasion, his use of energy to threaten other countries and his ambitions to prevent Ukraine and other countries in the region from pursuing a democratic, pro-European path. These shifts are having an impact inside both the EU and NATO. Successive French and German leaders who forged very close ties to the Kremlin have had to change their perception of Russia’s trajectory.  Since 1989, these two countries have viewed Eastern Europe through the prism of Russia, as if neither was a truly independent sovereign state.  This perception has finally faded as Berlin and Paris now see the defense of Ukraine as being vital to European security—and vital for Ukraine’s survival as an independent, sovereign country. This has strengthened the backbone of the EU in terms of sanctions against Russia and support for Ukraine.  Perceptions of Central Europe have also been essential to NATO’s new emphasis on Northern Europe.  Russia’s war in Ukraine has persuaded Finland and Sweden to join NATO—a move that strengthens the alliance, but also halts, for the moment, the EU’s ambitions for strategic autonomy.  The war in Ukraine has exposed the EU’s lack of common security and defense culture, which explains why the Central Europeans have become even more “Atlanticist” as they seek to bolster the defense of Europe.  Their next task—their biggest policy shift—will be working out how to integrate Ukraine and Eastern Europe into the EU and NATO. And that’s a whole other chapter. Judy Dempsey is a Non-Resident Senior Fellow at Carnegie Europe and Editor-in-Chief of Strategic Europe

A mainstay of Ireland’s financial services landscape for over 60 years, our credit unions are entering an exciting phase with recent developments presenting new opportunities to adapt and change Credit unions are an important part of the financial services landscape. With offices a common feature of cities, towns and villages throughout Ireland, they play a key role in the day-to-day finances of many Irish people and communities. There are more than 3.6 million credit union members on the island of Ireland.  A history of credit unions Credit unions were first established in Ireland in the late 1950s and quickly became a repository for savings and a source of loans for many people. The total value of loans extended by credit unions in the Republic of Ireland is currently around €5 billion, with total savings coming to about €16 billion.  Average sector total reserves, as a percentage of total assets, is approximately 16 percent, which serves to underpin the confidence of their members, particularly in times of uncertainty and disruptive change. These institutions are not-for-profit financial co-operatives. They are owned and controlled by their members and therefore have a different business model to retail banks. Each credit union is independent, with its own board of directors, charged with overall responsibility for running the credit union.  Because they are part of the financial services sector, credit unions are governed by legislation in Ireland, principally the Credit Union Act 1997, as amended, and regulated by the Central Bank.  Significant amendments to the 1997 Act were introduced by the Credit Union and Co-operation with Overseas Regulators Act 2012, and this is the legislative regime under which credit unions currently operate. The credit union sector has been relatively stable in terms of any legislative or government policy changes. However, two recent developments, the Credit Union (Amendment) Bill 2022 and the Retail Banking Review (November 2022), present new opportunities for credit unions to adapt and change their business models and enhance their product and service offerings to members. The Credit Union (Amendment) Bill 2022 The first major legislative change for credit unions since the 2012 Act, the Credit Union (Amendment) Bill 2022 (the Bill) was published on 30 November 2022 following over two years of stakeholder engagement, with over 100 proposals considered. Highly technical and not an easy read, the Bill is currently before the Dáil, where proposals for amendments will be considered.  There is no fixed timeline for enactment and, post-enactment, commencement of sections may occur in phases, with the Central Bank of Ireland having to amend regulations to accommodate the new provisions.  The main provisions of the Bill involve: the establishment of ‘corporate credit unions’; amending the requirements and qualifications for membership of credit unions; altering the scope of permitted investments by credit unions; changes to the governance of credit unions; maximum interest rates on loans by credit unions; provision of services by credit unions to members of other credit unions; and participation by credit unions in loans to members of other credit unions. Collaboration between credit unions The introduction of ‘corporate credit unions’ should support greater collaboration between credit unions, facilitating a pooling of resources and greater access to funding.  A new form of regulated entity, their membership would be restricted to other credit unions, with lending allowed only to those members. Further collaboration is envisaged with a provision in the Bill allowing all credit unions to refer members to other credit unions to avail of a service that the original credit union does not provide.  While such referral is not mandatory, it is a new option for making additional services available to members—for example, a current account facility where the original credit union may be reluctant to provide this service to all members based on cost or other reasons.  Another provision enabling collaboration allows a credit union to participate in a loan to a member of another credit union. This will facilitate risk sharing associated with the loan and will make it easier for an individual credit union to offer larger loans to its members.  Regarding lending to businesses, and other organisations or associations, there is a further key provision in the Bill for “bodies” (incorporated or unincorporated) to be allowed join a credit union with the same rights and obligations as a “natural person” (member).  This is, however, subject to conditions that a majority of the members of the body would be eligible to join the credit union and the body meets the common bond requirement. Ultimately, this will make it easier for credit unions to lend to such bodies and is principally focused on SMEs. While none of these changes are mandatory, they do provide new options and opportunities for credit unions. Governance changes Regarding changes in governance, two provisions stand out: the option to appoint the manager (chief executive officer) of the credit union to the board; and  reduction of the minimum number of board meetings per year to six, down from the current 10.   The extent to which these changes will be adopted remains to be seen, as many credit union boards may be content with the existing practice.   Where a credit union decides to include its manager as a board member, the Bill proposes that this will be done by their direct appointment to the board and not by election at a general meeting of members.  The term can be for any length but cannot extend beyond the individual’s term as manager.  One restriction on the manager as a board member is that they cannot sit on the nomination committee of the credit union, the membership of which is restricted to board members who have been co-opted or elected at general meetings.  Similarly, regarding the frequency of board meetings, the board may be reluctant to change the current practice of having at least one meeting per month, concluding that it cannot adequately carry out its responsibilities with only six board meetings.  Because of the voluntary ethos of credit unions, the historically close involvement of board members with the credit union, and the relatively onerous responsibilities of boards, it may take some time before six board meetings is considered the norm. Other governance changes proposed by the 2022 Bill include reducing the number of board oversight committee meetings, removing the requirement for the board oversight committee to sign the audited annual accounts, and extending from annually to every three years the review of specific policies by the board. The Credit Union (Amendment) Bill 2022 includes substantive policy change in the areas of collaboration, members’ services, and governance. It seeks to give more power to credit unions to determine strategy and, when enacted, will require consequential changes to Central Bank regulations.  To fully exploit the options and opportunities enabled by its provisions will require significant work by the sector. The Retail Banking Review 2022 In November 2022, following its approval by Government, Minister for Finance, Paschal Donohoe, and Minister of State for Financial Services, Credit Unions and Insurance, Sean Fleming, published the report of the Retail Banking Review (the Review).  Driven by the departure of two major banks, Ulster Bank and KBC, this is a broad-ranging review of the retail banking sector in Ireland, including the credit union sector.  In relation to credit unions, the Review states: “Credit unions have a strong and trusted brand, they are present in communities throughout the country, and have been developing their product offering. The credit unions are already a significant player in consumer credit, and they are making inroads in the current account, mortgages and SME segments of the market. These developments, coupled with their collectively strong levels of capital and deposit bases, leads the Review Team to believe that credit unions could play a greater role in the provision of retail banking products and services in the coming years.” Referencing the Credit Union (Amendment) Bill 2022, the Review recommends that the credit union sector develop a strategic plan to deliver business model changes that would enable it to sustainably provide a universal product offering to all credit union members. Provided directly or on a referral basis, this would continue to be community-based. The Review suggests that such a strategic plan should show how credit unions can: viably scale their business model in key product areas such as mortgages and SME lending; invest in expertise, systems, controls, and processes to deliver standard products and services across all credit unions, while managing any risks arising and continuing to protect members’ savings; provide the option of in-branch services for members of all credit unions. Both the Bill and the Review point to new opportunities for credit unions and demonstrate confidence in their future as part of the Irish financial services sector. For these opportunities to be successfully managed, however, credit unions must continue to maintain high levels of governance so that legislators, the Central Bank, their members, and the wider community can have confidence in the sector.  Credit unions have done much for many people in Ireland for more than 60 years. These developments in legislation and government policy point to their continued and increasing relevance in the years ahead. Gene Boyd, FCA, is a risk management consultant and author of The Governance of Credit Unions in Ireland

Tech sector layoffs have been making headlines for months. Will today’s economic conditions affect the accountancy sector, as well? Three members discuss their views on what the future holds for professionals in finance Garrett McCarthy  Partner Hugh McCarthy & Associates Firms like mine have faced staff recruitment and retention issues for years. Practice is always a challenging environment to hire and retain staff, but it has been particularly bad over the last 12 months.  Given the never-ending regulatory changes and additional burdens on clients, I cannot see any reduction in the demand for staff any time soon. The problems stem from staff affordability, high salary expectations and constant pressure on working arrangements. Are they sustainable, and will clients fund them? This is where I see uncertainty rising over the next two years.  In terms of business, 2023 looks very positive, and feedback from our clients is positive, which is great. Our issues are internal: filling roles and recruiting and retaining new staff at all levels is a huge challenge. The people just aren’t out there, and when they are, the opportunities for them are endless, making it very difficult for small and medium firms to recruit.  As a firm, we must be laser-focused on margin for the foreseeable future, with cost increases across our main areas under pressure. Salaries, recruitment, retention and other staff-related costs are going up significantly. IT and compliance costs are a close second and they are also rising. Clients are very resistant to increasing fees which is the crux of the problem.  I would be bullish for the year ahead, we have a great team which we are looking to grow when we can, and our clients are fantastic. We have problems as an industry, but doesn’t everyone? Most importantly, we have the work, which is never a bad thing. Neil Hughes  Managing Partner Baker Tilly Over the past few months, the tech sector in Ireland has been experiencing a reset. Many of the world’s leading tech companies, with EMEA HQs here in Ireland, have begun ‘right-sizing’ as we have finally waved goodbye to the global pandemic. After taking on additional staff during the pandemic, these multinationals are now rescaling resources back to their pre-pandemic size, often with very difficult consequences for their people, especially those who have recently joined.  First, it is important to understand what is happening. Decisions in the multinational tech sector are primarily driven by investor sentiment. Investors in tech stocks are now finding alternatives to global equity markets during this era of rising interest rates in the form of safer deposit accounts and bond markets. Large equity players, such as the global tech giants, are resorting to crude cost-cutting to ensure that they remain as attractive as possible in terms of their key profitability metrics to fortify their share price as much as they can while the economic landscape evolves.       As this is the key reason for the deep cuts being made, it is unlikely that the accounting and finance sector will feel any direct negative impact because of the reset. Instead, there is a possibility that the additional people that come into the job market in the coming weeks and months will help ease the acute resource pressures currently being felt by firms in professional practice.  Although there may not be many direct finance graduates coming out of the tech firms, our profession has long moved past being a discipline for commerce or finance graduates only. Those graduates with strong analytical skills and a positive attitude can undoubtedly pivot and excel in the accountancy profession. If the profession can evolve to find a place for those who have not come through the traditional channels for the Chartered Accountants qualification, the outlook for our firm and the wider accountancy sector is very bright.  The pandemic has proven that there will be no let-up in demand for quality financial and business advice. We need to be ready to provide the brightest and best minds to meet the requirements of our clients. Ornaith Giblin  Consultant  Barden    While it is estimated that there have been 140,000 tech layoffs globally since March 2022, the impact on Ireland has been estimated to be closer to 2,000. Most layoffs to date have been focused on operations with little to no impact on finance teams, and any fallout is likely to have a limited effect on the accountancy profession in Ireland. We have not seen any material risk for accountants across the tech sector from a job security point of view.  As accountants are employed across all industries, we don’t foresee a series of events that would lead to a similar level of uncertainty. Overall, Irish unemployment numbers are at 4.3 percent in December 2022, nearly the lowest for over 20 years.  We have seen the demand for accountants far exceeding the supply in the last 18 months, more than in any other period of time. The tech sector no doubt has contributed to that, and demand will be slightly denuded as a result, but we still expect the current significant imbalance that exists in the Irish market between the supply and demand of accountants to continue.  From an industry perspective, the availability of talent will be a concern in the coming years. Despite the perception of headwinds, current demand is far outstripping the supply of accountants from the previous peak of Q2 2008.  From an individual accountant’s perspective, the outlook in the short- to medium-term is positive. While the sector is not impervious to macroeconomic factors, we would see the current strong demand for accountants continuing through 2023. 

Companies in Ireland cannot afford to ignore the impact of emerging ESG requirements on their annual reports and financial statements—now is the time to act, write Fiona Hackett and Emer Fitzpatrick  2022 was an unprecedented year of change for environmental, social, and governance (ESG) reporting.  It was the year the European Union published the Corporate Sustainability Reporting Directive (CSRD), leading French Economy Minister Bruno le Maire to declare “Greenwashing is over”.  Also published in 2022, to support the implementation of CSRD, were 12 draft European Sustainability Reporting Standards (ESRS). The International Sustainability Standards Board (ISSB) issued two exposure drafts: one on climate-related disclosures; and another on general disclosures concerning governance and other sustainability matters.  And in the US, the Securities Exchange Commission (SEC) issued a lengthy exposure draft containing proposed rules on climate disclosures. So, what will all of this mean for Irish companies preparing their annual reports in 2023 and beyond? Sustainability disclosures Each of these “big three” proposals will require extensive sustainability disclosures in the front half of the annual report.  These proposals may sit alongside, incorporate, or supersede existing sustainability reporting, such as EU Taxonomy, Task Force on Climate-Related Financial Disclosures (TCFD), or Global Reporting Initiative (GRI) Standards—to name a few.  In tandem with this, however, companies will also need to keep in mind any statements they make relating to their ESG-related activities and commitments. This is particularly important because, in addition to a heightened focus on sustainability reporting, 2022 also brought a notable rise in the number of Irish companies pledging to set and meet ambitious ESG-related targets. Here are three examples of what we mean: “Our company plans to be net zero by 2030.” “The group will achieve Net Zero on Scope 1 and Scope 2 emissions by 2040.”  “X percent of our revenue will be derived from sustainable products by 2035.” Regulatory scrutiny Increased stakeholder and investor focus on ESG has led to rising regulatory scrutiny on this issue among financial regulators around the world.  In Ireland, the Irish Auditing and Accounting Supervisory Authority (IAASA) issued a publication on climate related disclosures in financial reports in October 2022.  Demonstrating IAASA’s engagement with companies on areas of potential greenwashing, the publication focused on the consistency of climate-related information provided by companies via financial statements and other means, including the front half of the annual report.  The publication included a list of questions/additional information IAASA had requested, and is expected to request in future reviews from companies in response to statements and pledges made by these companies in relation to climate change.  IAASA’s publication focused solely on climate change. However, the messages contained within the publication are relevant to any sustainability pledges, statements or pronouncements made by a company, and their impact on its financial statements.  All of this increased scrutiny of ‘front half’ ESG disclosures is set to have a significant impact on the financial statements of Irish companies in 2023 and beyond.  In responding to this shift, Irish companies must consider the impact of all ESG pledges and statements made at all levels of the organisation, and the potential impact they will have on their financial statements.  Financial statement focus areas There needs to be clear and consistent messaging on all relevant ESG matters throughout a company’s non-financial and financial reporting. The impacts of ESG pledges and statements must be carefully assessed—and fully disclosed and explained within the financial statements.  This goes against the longstanding understanding that, where the ESG statements, claims and commitments made by a company had no significant financial impact, there was no need for disclosure in the financial statements.  Now, where a company believes that the financial impact of an ESG pledge is negligible or not material to the financial statements, it must nevertheless consider disclosing this fact. Non-disclosure is no longer an option. To help illustrate the potential implications for a company’s financial statements, let’s take one of three sustainability pledges used above—“our company plans to be net zero by 2030”. Having made this statement, this company must now be able to detail the actions it will undertake to ensure that it can indeed reach the net zero target it has set for 2030. Some areas to consider are outlined below. Impairment of tangible and intangible assets:  Depending on how the net zero pledge will be implemented, companies should consider whether any risk relating to the pledge constitutes an impairment indicator as detailed in IAS 36, paragraph 9  that requires an impairment test to be carried out. For example, if a company needs to update its manufacturing process to emit less greenhouse gases in order to meet its net zero target, this might be an indication that a manufacturing plant is impaired.  When carrying out an impairment test under IAS 36, companies can choose to use a value in use (ViU) model or a fair value less costs of disposal (FVLCD) model to complete this test.  In a ViU model, future cash flows shall be estimated for the asset in its current condition (IAS 36, paragraph 44). Over time, the impact of a net zero pledge may result in an adjustment to these future cash flows.  The ViU model, by its nature, restricts when the benefits of restructuring and improvements, or enhancements of an asset’s performance, can be taken into account. Expected benefits from restructuring can only be reflected in a ViU calculation once a company is committed to the restructuring.  IAS 37 provides guidance on when a company is committed to restructuring. For improvements or enhancements to assets, expected benefits can only be recognised when a company has started to incur the related expenditure.  If a terminal value is used in the calculation of ViU, the impact of a move towards net zero will need to be factored into the calculation of an appropriate terminal value.  If you have made adjustments to future cash flows for the impacts relating to the net zero pledge, it is unlikely that any adjustments will be needed to the discount rate used in the ViU calculation. Continue to use existing methods for calculating the cost of capital and avoid double counting risks.  Where companies choose to utilise a FVLCD model for impairment testing, consideration needs to be given to the definition of fair value in IFRS 13.  Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date”.  Market participants, including investors, are becoming increasingly concerned about the importance companies are placing on the impact of ESG.  There is a particular focus on understanding how companies plan to achieve their pledges or commitments, and what financial impact ESG will have on the company.  This translates into the price that market participants are willing to pay to acquire assets.  Appropriate adjustments for the issues market participants see in relation to ESG and sustainability need to be factored into FVLCD models. IAS 36 requires detailed disclosures in relation to impairment testing. It is imperative that companies provide adequate information to support any assumptions contained in ESG statements and pledges as part of their impairment work. Useful lives of assets:  ESG statements or pledges may result in the need for a reassessment of the useful lives and residual value of a company’s tangible assets.  Striving to be net zero by 2030 may, for example, result in earlier obsolescence or retirement of assets, legal restrictions may curtail the use of assets, and assets may become inaccessible.  IAS 16 paragraph 6 defines the useful life of an asset as “the period over which an asset is expected to be available for use by an entity”.  The assessment of useful life will be based on a company’s best estimate, and this estimation will involve a level of judgement. Companies should consider the IAS 1, paragraph 125 requirements in relation to disclosure of estimation uncertainty associated with useful economic life. Provisions:  Companies need to consider whether the ESG statements or pledges they are making (such as the commitment to reach net zero by a certain date, for example) give rise to legal or constructive obligation.  IAS 37 provides guidance as to when an obligation arises here, including a description of what a constructive obligation is. A company will need to determine whether a provision should be recognised, or contingent liability disclosed, as a result of any ESG statement or pledge it has made. The above list is not exhaustive and additional areas within the financial statements may also need to be considered. Additional considerations What is most important for companies to remember is that careful consideration must now be given to any ESG-related statements, commitments or pledges made—and that a thorough analysis and impact assessment of how these statements will affect the company’s financial statements will be needed. And this cannot solely become the responsibility of the finance team. Input from all relevant stakeholders will be required. A collaborative cross-company approach will be crucial to appropriately and adequately address ESG issues.  It is a tall order. The pace of recent developments in ESG reporting are akin to a Japanese bullet train hurtling towards its destination.  The upshot for Irish companies is that they can no longer afford to ignore the impact of this rapid change on their financial statements and annual report as a whole.  The level of stakeholder, investor and regulatory scrutiny will only increase this year and beyond. Now is the time to act. Fiona Hackett is a Director in PwC’s Corporate Reporting Services and chairs the Financial Reporting Technical Committee of Chartered Accountants Ireland Emer Fitzpatrick is a Senior Manager in PwC’s Corporate Reporting Services

ISQM1 has created a valuable opportunity for firms to embrace technology and data management for greater efficiency. Liam Mullane explains why Like Christmas, the 15 December deadline for implementing the International Standard on Quality Management 1 (ISQM 1) has come and gone.  Now, you need to turn your attention to ensuring the System of Quality Management (SoQM) you have designed is operating effectively.  It’s also a good time to look back at all the controls you have designed as part of your ISQM1 implementation and identify any potential opportunities there may be to optimise these processes.  But first, let’s look at one of the significant changes introduced by ISQM1—your firm’s Risk Assessment Process (or RAP) for designing, implementing and operating your SoQM.  The RAP will potentially have led to a significant increase in the number of formal controls your firm needs to implement, monitor, and test.  This new requirement is also iterative, resulting in firms adjusting their SoQM for the new quality objectives and/or quality risks identified. This process gives rise to other opportunities to enhance your SoQM on a yearly basis, including “embracing technology” and “data management”. Embracing technology Most firms will have invested significantly in audit technology over the past decade with continued investment planned into the future.  If you haven’t done so already, however, now is the time to consider whether your firm has invested sufficiently in your internal quality control processes—key components of your SoQM.  Some firms may have a manual process for engagement budgets, for example, and a separate manual process for the assignment of resources to engagements.  There is a risk that these two manual processes may not be consistent in decisions made, and this could have a direct impact on audit quality.  This could, therefore, be the ideal opportunity to embrace technology and merge the two sub-processes into one work stream. Automaton in itself should be a key consideration on a go forward basis. ISQM1 has resulted in most firms creating numerous formal controls across their practice.  If the controls and processes are manual in nature, there is a valuable opportunity for automation.  The benefits of automation include more consistent application and operation, less risk of error and manual input, efficiency and, ultimately, improved compliance.   Data management  ISQM1 has eight components and, as firms design and develop different controls to address the relevant quality objectives, a key input to a lot of these controls will be data.   Data can be a key input to different controls in various processes (i.e. there is an interplay across ISQM1). In order to ensure a coherent and efficient SoQM, this data should be consistent.  Accountants tend to love spreadsheets—but, like everything, there is a time and a place. Where possible, all data should be gathered in a data warehouse, which is checked for completeness and accuracy.  This is a key input to ensuring your SoQM operates appropriately across all components. As they say, “rubbish in, rubbish out”.      Last word The operation of ISQM1 by 15 December 2022 has been a great achievement by all of the implementation teams across the various firms, but the work doesn’t stop there.  Your firm must now continue to develop your SoQM with the iterative process, using the opportunity to embrace new technology to make everyday tasks more efficient, while also considering your approach to data management.  ISQM1 is raising the standard for all—we must grasp the opportunity with both hands. Liam Mullane is a Director with KPMG

Fostering a culture of equity, inclusion and belonging for members from minority ethnic groups is the aim of the Institute’s new Ethnicity Network Group An inclusive culture that promotes and supports diverse perspectives can stimulate innovation and improve performance for organisations in all sectors. This is according to Deborah Somorin, Manager, People Advisory Services at EY Ireland, and Chair of the recently launched Ethnicity Network Group at Chartered Accountants Ireland. The Ethnicity Network Group has been established to develop a more inclusive profession by helping organisations to foster a culture of equity, inclusion and belonging for employees from minority ethnic groups. “I always look to the research to work out value and significance and it really struck me to discover the very concrete benefits for organisations that are ethnically diverse,” Somorin explains.  “According to McKinsey, these organisations are 36 percent more likely to outperform their peers financially, because inclusive culture helps to attract and retain talent.” A voice and platform The Ethnicity Network Group will organise a programme of events, provide training and resources for organisations, and develop a mentoring programme to support members and students from Traveller, Black, Asian and other Minority Ethnic groups.  Its aim is to encourage and facilitate the discussion of issues relevant to people in these minority groups and give them the voice and platform to identify solutions.  “It’s really about expanding the conversation around diversity, to further strengthen the cultural intelligence within our profession and beyond, and to continually challenge biases in the highest and best way,” says Somorin. “If you look at the top-performing organisations in the McKinsey research, they don’t just hire for diversity, they also invest in the cultural initiatives needed to integrate people of all backgrounds and ethnicities into their organisations.  “They focus on training and mentoring, which is a really important part of creating and supporting an inclusive culture, and all of this helps to attract and retain the best talent.” Creating awareness The Ethnicity Network Group was formed in late 2022, supported by Shauna Greely, former President of Chartered Accountants Ireland and current Chair of the Institute’s Diversity and Inclusion Committee. In addition to Somorin in the role of Chair, Ethnicity Network Group members include: Vice-Chair Rutendo Chiyangwa; Khadijat Lawal; Aisling McCaffrey; Lloyd Mufema; Reabetswe Moutlana; Mwale Tembo; and Seun Olayanju. “Creating awareness is a big part of what we want to do. We are all different and it’s really about being open to learning and asking questions,” explains Khadijat Lawal. “We want to support members and students from Traveller, Black, Asian and other Minority Ethnic groups, but also to open up the conversation in the wider profession, to integrate and celebrate, because—while we are different—there are also so many similarities between us.” A Financial Accounting and Advisory Services Senior at Grant Thornton Ireland, Lawal has had different experiences at work and in education, not all of them positive. “I’m used to being in environments where I am either the only Black person, or one of the few Black people in the room. Sometimes, I have felt that I couldn’t fully be myself, that I couldn’t share parts of my culture and who I am,” she says. Lawal joined Grant Thornton in 2019 as a trainee. “One of the first things I noticed was colleagues of different ethnic minorities,” she says. “They were eating their own food and speaking their own language. That communicated to me that my difference would be welcomed here.” And Lawal noticed this commitment to true diversity and inclusion (D&I) in other areas too. “My manager at the time was always so curious about where I was from, and about my differences,” she says.  “I am from Nigeria and Yoruba is my native language. This manager looked up how to say ‘thank you’ in Yoruba for me. I found that so endearing because he didn’t have to do it.  “It just shows how much it really matters that we feel we can be curious about one another, but also kind and genuine. “The Ethnicity Network Group is about getting that message out there and helping people to have these conversations in the right way.” Positive energy Aisling McCaffrey is Director of Sustainability and Financial Services Advisory, Grant Thornton Ireland. She was invited to join the Ethnicity Network Group by Lawal, her colleague at the firm. “I was delighted to be asked. When we had our launch in December at the EY office on Harcourt Street, you could just feel this amazing, positive energy in the room,” says McCaffrey. The launch felt especially timely, because, says Caffrey, “diversity of thought really matters now. It’s a reflection of a changing dynamic in Ireland, and it’s hugely important”. Fostering a sense of belonging, and creating a supportive, inclusive culture, is essential for all employees in the modern workplace. “The way people view work, and what they want from an organisation, changed a lot during the pandemic,” says McCaffrey. “The lockdowns, social distancing and remote working gave people a lot of food for thought in terms of: ‘What do I want to do?’ What do I want from my work? What do I value?’ “People now really want to be part of an organisation that recognises them, not just in terms of what they can deliver, but also what they bring to the organisation as an individual. “We want to promote a sense of belonging and inclusion, we want to celebrate diversity—but it’s also really important that the Ethnicity Network Group can generate measurable outputs in time.  “For me, that’s where the potential for an Ethnicity Pay Gap Report comes into play, because while it’s all well and good for an organisation to say that they have an inclusive, equitable environment, we need to see that reflected in pay and leadership.” Member survey The launch of the Ethnicity Network Group in December followed a survey of over 1,300 members and students of Chartered Accountants Ireland conducted by Coyne Research. The findings revealed that, for 40 percent of members who claimed to have witnessed or heard discrimination against others, it was based on ethnicity.  Two-in-three of the students surveyed reported the same. “Changing this is really about action: ‘What can you do to bring about change?’” says McCaffrey. “People are generally self-aware and often you will find—especially in a work environment—that they are not sure how to approach questions or conversations around cultural difference. “They are concerned that they might offend someone if they say the wrong thing. So, it’s about being able to create a safe space and a learning environment that benefits everyone.  “It’s about understanding that, if someone says the wrong thing, you feel comfortable enough giving them feedback and they feel comfortable enough accepting it.” Importance of training For Somorin, the level and quality of the D&I training available to employees in any organisation is of the utmost importance. “If it is approached as a tokenistic tick box exercise, it’s going to feed into how importantly people view it,” she says.  “I’ll give you just one example of why this matters. For Irish people, where you come is a really big thing—if you’re from the Carlow clan or the Mayo clan—it is a huge part of people’s identity here. “But, if you don’t look stereotypically Irish, people will frequently ask you where you are from, and when you tell them you’re from Ireland, the next question will often be: ‘But, where are you really from? Where are your grandparents from, your great grandparents?’ “It comes from trying to place your clan, I think, and even though there is rarely any malice behind it, you do need to educate yourself as to how that can make someone feel. “When you are facing the same question over and over, it can invalidate your own sense of identity as an Irish person. It can make you feel ‘other’ or singled out.” Rules of engagement In organisations that have a truly inclusive culture, and an appropriate level of training, Somorin believes that people will organically begin to develop an awareness of the impact questions like this can have. She calls this learning the ‘rules of engagement’. “For me personally, this is a big selling point at EY. These things are made very clear even down to the performance evaluation process,” she says.  “We’re constantly encouraged to take a step back and ask ourselves, ‘if someone did or said something in a different way, but it led to the desired outcome, can we really view it as a negative?’ “Not everyone has grown up in a diverse environment and not everyone inherently understands how they should behave and what they should or shouldn’t say or ask. And it’s okay not to be perfect. What really matters is that we are all open to learning.” 

The West is now at economic war with Russia and the consequences may well shape our lives for decades to come. Cormac Lucey explains why Enormous change sometimes occurs without us even noticing. The appointment of Paul Volcker in 1979 to head up the US Federal Reserve ushered in a decade of transformation.  Margaret Thatcher and Ronald Reagan took the top political jobs in the UK and US, unleashing four decades of falling interest rates, lower inflation, and rising financial asset prices.  The Berlin Wall came down, China pushed for greater trade with the West, and economic globalisation accelerated. Back in 1979, few could have foreseen the immense change that lay ahead.  By contrast, the Russian invasion of Ukraine last year was impossible to ignore. Vladimir Putin may have expected little resistance to his “special operation”, but the Ukrainian response has been intense and courageous. And the West has shown surprising unity in agreeing a two-pronged strategy: providing advanced weapons systems to Ukraine while also imposing unprecedented economic sanctions on Russia.  In addition to targeting key individuals associated with the Putin regime, western nations are trying to limit Russia’s access to money. Major Russian banks have been removed from Swift, the international financial messaging system.  Russia has been barred from making debt payments using foreign currency held in US banks. And western Europe has frozen the assets of all Russian banks, blocked Russian firms from borrowing money, and placed limits on Russians deposits in European banks.  The EU has banned imports of Russian coal, refined oil products and oil by sea. It is unprecedented for a large power (and permanent member of the UN Security Council) to be subject to such sanctions.  The closest we’ve come in recent history was perhaps US President Franklin D Roosevelt’s attempts 80-odd years ago to curtail an expansionist Japanese Empire.  In 1940, Roosevelt closed the Panama Canal to Japanese shipping. Responding to Japanese occupation of key airfields in Indochina, the US froze Japanese assets the following year and established an embargo on oil and gasoline exports to Japan.  By December 1941, Japan had attacked Pearl Harbour and triggered war with the US.  Today, the West is waging economic war on Russia and the consequences—less evident than the immediate conflict—may well shape our lives for decades to come.  Unlike Japan in 1940, Russia today is a plentiful supplier of commodities and not easily besieged.  It has powerful neighbours in China and India, both of which are quite content to continue trading with Russia, despite the West’s sanctions. But China has its own unsatisfied territorial claim over Taiwan, which could provoke similar sanctions from the West. This has resulted in China seeking to reduce its economic dependence on the West, just as the West scales back its reliance on China.  The result is a new era of deglobalisation, ‘reshoring’ and ‘friendshoring’. Taiwan Semiconductor Manufacturing Company (TSMC)—the world’s leading manufacturer of microchips—is at the epicentre of the resulting tensions.  In a recent speech, TSMC founder Morris Chang observed: “Globalisation is almost dead. Free trade is almost dead. And a lot of people still wish they would come back, but I really don’t think they will be back for a while”.  This is evident in TSMC’s decision to locate its newest fabrication plant in Arizona in the US—a location it would hardly have chosen prior to the Ukraine War.  Has the world of peace, uninterrupted trade and economic globalisation been replaced by one of large trading blocs operating in parallel, but separate from each other? It looks like it. Unfortunately, we will all probably lose out as a consequence. Cormac Lucey is an economic commentator and lecturer at Chartered Accountants Ireland

Cormac O’Shea, Chief Financial Officer with Telegraph Media Group in the UK, talks us through the international career path that took him from Cork to Sydney and on to London  Corkman Cormac O’Shea combined his passion for maths with his early experience working for the family business to pursue a career as a Chartered Accountant and soon found himself cutting his teeth in the media sector in Australia before relocating to London where he is now Chief Financial Officer with Telegraph Media Group (TMG). As the publisher of The Daily Telegraph and The Sunday Telegraph, The Telegraph Magazine, Telegraph.co.uk and the Telegraph app, TMG operates a subscription-first business.  Here, O’Shea tells Accountancy Ireland about what led him to accountancy and how he has since forged a successful career in international media over two decades. Tell us about your career starting out. What made you decide on accountancy? I was always interested in business. My parents ran O’Shea’s Pharmacy in Blackpool on the northside of Cork city and I began helping out really young, from about the age of 10, alongside my two sisters.  That sparked an interest for me in how businesses ‘work’; what it means to run a business hands-on, dealing with customers and managing the finances.  I remember I really enjoyed dealing with the customers face-to-face (under strict supervision from my parents!). Then, at school, I enjoyed maths and physics, and applying that interest in numbers to accounting.  So, on the one hand, I had this interest in business and, on the other, numeracy.  Accountancy was attractive for those reasons. I like dealing with numbers and I like understanding how businesses invest and turn a profit. After the Leaving Cert, I moved on to University College Cork (UCC) and graduated with a degree in commerce in 1994. You left Ireland at a fairly early stage in your career, relocating to Australia in 1998 to live and work in Sydney? What prompted the move? It was my personal life that took me to Australia initially. My wife Jane, who was then my girlfriend, secured a position over there doing post-doctoral work with the Australian Government after her PhD.  That said, I already had itchy feet and, actually, the mobility of accountancy as a career was a big draw for me.  I realised that, as a Chartered Accountant, I could work anywhere in the English-speaking world and Australia just looked very attractive.  I moved over there with Jane safe in the knowledge that I could also develop my career there. My Chartered Accountant (CA) qualification, combined with my BComm from UCC, gave me an element of certainty from a career perspective.  I would say that, overall, my career journey has been fairly consistent. I’ve continued to work in financial roles and, given my interest in travel, I have been able to visit different countries and work in different cultures. What was your first job in Sydney and how did your career evolve from there? I got a job contracting with an advertising agency for a short while after I arrived, which was quite interesting. Like many Irish Chartered Accountants in Sydney, I took on contracting work where I could, and travelled the rest of the time. About a year in, I got a call from a company called APN News & Media, the Australian subsidiary of Independent News & Media.  I met with Vincent Crowley, a fellow Irish Chartered Accountants and the then CFO of APN, and he explained how the business operated across newspapers, radio and outdoor advertising. I was always interested in journalism and news media, so APN seemed like a good option for me career-wise.  Also, Australia had been a growing economy for many years with very active population growth and that was the case even 20 years ago when I moved over there. At that time, the population was about 19 million.  Now, it’s up to 26 million and rising. For me, this kind of fast-growth, multicultural society is a fascinating place to live and work. Tell us about your interest in the media? What is it about the sector that appeals to you from a professional point of view? I came from a family with a theatrical background. I have always enjoyed that mix of creativity and business, which is what makes the media interesting to me.  Media is a creative business. It combines entertainment, engagement and information—and it’s consumer-driven. You have to market your content to the consumer. From Sydney, you moved temporarily to New Zealand, then back to Sydney and on to London. What was it that kept you moving? The move from Australia to New Zealand came about because APN bought an Auckland company called Wilson & Horton.  I worked on the acquisition and then moved into a corporate finance role, which involved raising equity and debt, and debt management for the business. That experience was great. It gave me exposure to people at the top of the organisation. I was reporting directly to the CFO at APN and putting together presentations, meeting with banks and shareholders. I was offered the opportunity to become CFO of the Outdoor division, based in Sydney. Up to that point, I hadn’t managed a team of more than two or three people, so it was a big step up. I think luck plays a major role in how our lives and careers progress and this was a really lucky break for me, because my CFO at the time had a lot of faith in me. With his support, I was effectively able to launch my own career as a CFO.  After that, I moved to be the CFO of the Australian Radio Network to work with fellow Irishman Ciaran Davis. I enjoyed working in radio, because it is woven into the fabric of our day. Podcasting has become incredibly popular, and I see it as a return to the most traditional form of audio listening. In the modern environment, it happens to be on-demand.  Traditional radio broadcasting required you to turn the dial at exactly the right time. Podcasting overcomes that. Following my radio stint, I headed closer to home in 2013 to join Clear Channel International, a London-based outdoor advertising business, as CFO of its international division.  It was an elevated role with a different business and the timing was perfect for my wife and I.  By that time, we had lived in Australia for 15 years, but family life is very important to me, and you really miss it when you’re so far from home for that long. Living in London, I can be in Cork in three hours door-to-door. You joined Telegraph Media Group in September 2021 in the role of Chief Financial Officer. What was it about the position that appealed to you? It is a fantastic brand that is recognised worldwide, and I am a great believer in the power of quality brands. I’m genuinely interested in news media and the role it plays in society, and I want to work in an industry that interests me.  I am particularly interested in subscription news media and TMG is leading the charge in this space. The businesses I have worked with have always embraced transformation, particularly driven by digital change. Transformation creates interesting challenges for the CFO because you need to be very focused on the allocation of resources, and on supporting the business in the areas in which it needs to grow, while also managing existing elements. One of the big learnings that came out of the COVID-19 pandemic was the importance of trusted sources of information for citizens. The professional news media is crucial for society. Looking back now, do you have any regrets about your decision to become a Chartered Accountant? It’s one of the best decisions I ever made. I have no doubt about that. The qualification is effectively a ‘passport for life’. It has given me a technical qualification that is respected all over the world.  The brand of Chartered Accountants Ireland has been respected wherever I have worked.  In both Sydney and London, we have very active local societies of the Chartered Accountants Ireland family. There is a sense of fellowship among members. What career advice would you give your younger self based on what you know now? We all develop relationships with the people we work with, and some endure. My advice to younger professionals would be to protect and nurture these relationships and make an active effort to build and maintain a network around you as your career progresses. I should stress here that I’m not necessarily talking about the power of your network in any commercial sense. It has to come from a place of friendship. The concept of culture in the working world is something I have really come to value over the years.  The finance function in any organisation is a professional service run by well-qualified people. You have to build a good culture within your team and that means treating people well and with respect. Help other people and thank them when they help you. Irish people have a good reputation internationally. We are regarded as being sociable and being good communicators. I would advise other Chartered Accountants to take this on board when it comes to their careers. Never be afraid of it.  Of course, be thankful for where you are and what you already have, but always be ready to grasp opportunities.

A truly diverse and inclusive workplace can boost business by promoting innovation and enhancing reputation, says Sandra Healy, founder and CEO of Inclusio Employers who treat diversity, equity and inclusion (DE&I) as a “tick box” exercise are missing a valuable opportunity to improve, not only their organisational culture, but also their ability to attract and retain talent and improve business performance and profitability. So says Sandra Healy, founder and CEO of Inclusio, the Irish tech start-up behind a first-of-its-kind platform offering a scientific, data-led approach to measuring DE&I in the workplace. Founded in 2016, Inclusio is now on the path to global growth amid plans to expand overseas and increase its Dublin headcount from 35 to 120 by 2025. The global expansion will be financed by the company’s Enterprise Ireland and VC backed €6.2 million investment. In addition to her role at the helm of Inclusio, Healy is a member of the Diversity and Inclusion Leadership Council for An Garda Síochána and a former member of the Expert Advisory Group for Ireland’s Citizens Assembly on Gender Equality. An organisational psychologist, her interest in promoting and supporting DE&I, and her inspiration for Inclusio, came about as a result of her experience working for two decades in global telecoms. “One of the values I hold dearest is fairness and I could see through my work that not everyone is treated fairly or equally at work,” Healy explains.  “That’s a problem for the individual who is not treated equitably, but it is also a problem for the organisation and, beyond that, for society as a whole.” Better outcomes  Ultimately, Healy believes that true DE&I can deliver better outcomes across the board.  “For organisations, the benefits of hiring a diverse workforce include access to a greater range of skillsets, experiences, and perspectives that reflect the reality of the society around us,” she says. “This provides a better understanding of their customers, and their customers’ needs—which improves commercial performance and boosts the bottom line.” Other benefits include greater creativity and innovation, improved talent attraction, engagement and retention, and a better reputation in the marketplace. “By intentionally creating a diverse workforce and a socially responsible organisation that takes DE&I seriously, you are opening the door to new markets, customers, business partners, and employees,” says Healy. “There are so many benefits—and you don’t have to go it alone. There are plenty of organisations providing advice and support to help employers get their approach to DE&I right, creating a better environment within the company and supporting a positive culture.” Inclusive hiring Creating an equitable hiring process is often the first step to building an inclusive work environment. There can be barriers to equitable hiring, however, sometimes including deeply held beliefs and behaviours.  “These barriers may be rooted in stereotypes, prejudice, or unconscious or implicit bias, which may lead to discriminatory beliefs and actions,” explains Healy.  “Only by identifying and understanding them, can we begin to dismantle beliefs that lead to discriminatory actions and attitudes.” The DCU Centre of Excellence for Diversity and Inclusion, founded by Healy, lists some the main barriers to equitable hiring as: 1. Stereotypes A stereotype is an oversimplified or exaggerated belief or sentiment about a group; a broad generalisation that doesn’t allow for individual differences. Stereotypes can be positive or negative and can apply to any group on the basis of race, ethnicity, age, disability, religion, gender, and other categories. 2. Prejudice Prejudice is a predetermined opinion or attitude about a group and its members. Prejudices are often negative and accompanied by a belief in an “in group” and an “out group”, the latter being the target of the prejudice. 3. Unconscious or implicit bias This is a form of prejudice or belief we are largely unaware of, which is held about members of a group. It can also be described as the positions we hold, filters we form, or conclusions we reach by means outside our active thought. Hence, unconscious or implicit biases often seem automatic. Unlike stereotypes and prejudices, these biases may not even enter our awareness, but they can drive discriminatory actions. 4. Discrimination This behaviour involves, or results in, people being treated unfairly, unequally or differently, because of their identity or the group or groups they belong to. Discrimination often starts through stereotypes, prejudices, and bias. Discriminatory behaviour can range from subtle actions to hate crimes.  Conscious steps All of these concepts work together to perpetuate inequity, so it is crucial that employers take deliberate, conscious, and considered steps to establish hiring practices that are as inclusive as possible. “As a first step, I would advise employers to evaluate and challenge the language you use in your job ads. Ask yourself, ‘what cohort am I appealing to, and who is missing?’” says Healy. She advises employers to design and develop interview processes that are inclusive, non-judgmental and respectful, creating equitable opportunity for all candidates. “All your approaches should be multidimensional—working to address biases and discrimination in all aspects of the hiring process,” she says. “Then, moving beyond the hiring process, you have to intentionally embed DE&I into the culture of your organisation and stress its importance through inclusive leadership and best practice.” As Healy sees it, culture lives “collectively” in the behaviours and lived experiences of each and every individual within an organisation.   “If you want to have a culture that is truly supportive of Diversity, Equity and Inclusion—and consistently so—you have to educate your people managers,” she says. “It should really be the case that, no matter what part of your organisation an individual works in, or who they report to, their experience is consistent with that of everyone else. Your DE&I policies and practices must be ‘lived’. “Your people managers are the custodians of that lived experience, and the culture of your organisation. They must be crystal clear about your DE&I policy and practice,” says Healy. “They must know how to have good conversations to make sure people are supported and get what they need. Ultimately, you want to focus on what every member of your workforce can do, not what they can’t do, and how they can contribute to, and enhance, your organisation.”  So, how can employers gauge whether or not they are on the right track when it comes to DE&I? “That’s one thing employers really struggle with—how do you measure culture?—and that’s where Inclusio comes in,” says Healy. “We’re bringing a ‘scientific evidenced’ approach to employers, which allows them to listen to the collective voice of their people and to measure, track and act on DE&I,” she says. About Inclusio Healy spun the idea for Inclusio into Dublin City University (DCU) in 2016 where she established and led its Centre of Excellence in Diversity and Inclusion Research. “Diversity and Inclusion is a core focus for many organisations now and the DCU Centre of Excellence was established to give them access to the very latest developments in academic research, insights and tools to drive change across organisations,” Healy explains. “I started working on Inclusio from 2016 with my two co-founders Deborah Murphy and Arthur Lubambo and support from Enterprise Ireland’s Commercialisation Fund, we spun out of DCU in 2020.” Inclusio has been developed by experts in behavioural data science, psychology, artificial intelligence, equality, diversity and inclusion. The platform gives employers real data-driven insights that will help drive DE&I improvements within their workforce and deliver measurable improvements in their culture. Healy has ambitious plans to make Inclusio Ireland’s first female-founded tech unicorn, and a global DE&I enabler that will help employers to “take the right action on DE&I and ensure that it’s not just a tick box exercise”. Participants in the company’s €6.2 million investment round, closed in 2022, include lead investor Elkstone, alongside Atlantic Bridge, Oyster Capital, Wakeup Capital, Enterprise Ireland, and a group of private backers, such as Brian Caulfield and John Hearne.  Inclusio’s clients include RSA Insurance Ireland, 123.ie, Intact FBD insurance, Linesight, Kilsaran, the Public Appointments Service, and Teagasc. “We already use global benchmarking, and we are now starting to develop sector benchmarking, initially with the insurance sector. Our customers use our data for Board and regulator reporting, Gender Pay Gap and environmental, social, and governance reporting,” Healy explains.  “That will allow employers to answer the question, ‘how am I doing compared to competitors in my own industry?’ as well as the global benchmark. “There is nothing else like Inclusio in the world. Our software is helping organisations to pinpoint and focus DE&I actions in a more strategic way, linked to business KPIs.” “That will allow employers to answer the question, ‘how am I doing compared to competitors in my own industry?’ as well as the global benchmark. “There is nothing else like Inclusio in the world. Our software is helping organisations to pinpoint and focus DE&I actions in a more strategic way.”

Accessibility is a key facilitator for meaningful inclusion and participation, as set out in the UN Convention on the Rights of Persons with Disabilities. Minister Anne Rabbitte explains why Since being appointed the Minister for Disability in July 2020, tackling barriers faced by people with disabilities in accessing employment has been one of my key priorities.  This, of course, is not a job for just one Minister, but is being managed across a number of different departments. Launched in 2015, the Comprehensive Employment Strategy for Persons with Disabilities (2015–2024) (CES) is the primary disability employment policy initiative in Ireland.  It brings together actions by government departments and agencies to address the barriers and challenges to employment of disabled people. The CES’ strategic priorities are to build skills, capacity and independence, to provide bridges and supports into work, to make work pay, to promote job retention and re-entry to work, to provide co-ordinated and seamless supports, and to engage employers. Four of the key actions progressed through the CES include: Progression of recommendations arising from the Make Work Pay Report (2017), which initially set out actions to help people with disabilities enter the labour force. The production of an online training programme to support employers in becoming “disability confident”, which encourages managers and staff to confidentially interact with disabled people. Provision of grant funding to the ‘Open Doors Initiative’, which aims to assist marginalised people who face higher barriers to employment. The funding will be used to operate the ‘Employers for Change’ information service, empowering employers with information and resources needed to hire and manage staff with disabilities. The development of an Employer Awareness Campaign, which is expected to be launched in 2023. Accessibility is a key facilitator for meaningful inclusion and participation, as set out in the United Nations Convention on the Rights of Persons with Disabilities (UNCRPD).  One way to promote accessibility in the workplace is through the concept of universal design. Universal design is about ensuring that products, services and the environment can be accessed and used by all people.  Universal design is also more sustainable design, as it ensures that products, services and environments will stand the test of time, particularly in the context of an ageing population. Embracing universal design from the outset avoids costly retrofitting. The public sector also provides crucial opportunities for people with disabilities to access employment. The Government has committed to doubling the target for employment of people with disabilities in the public service from three to six percent.  This commitment will be placed on a statutory footing with the commencement of the Assisted Decision Making Capacity (ADMC) Amendment Act 2022. As the UNCRPD itself states, disabled people have a right to the opportunity to gain a living by work freely chosen or accepted in a labour market and work environment that is open, inclusive, and accessible to persons with disabilities.  The Irish Government as a whole is committed to continuing to make progress in meeting all of our obligations to our disabled citizens. Central to this vision is ensuring that people with disabilities are supported to live the lives they want to, and are provided equal opportunity to do so.   Employment and everything that is associated with it, such as gaining independence, confidence and friendships, is a key aspect to improving the lives of people with disabilities and I look forward to continuing to make progress in this area. Anne Rabbitte, TD, is Minister of State with Responsibility for Disability

John Francis Dick tells Accountancy Ireland why it is so important to advocate for yourself and ask for what you need to succeed at work “Be the disruptor”. That’s the call to action from John Francis Dick, ACA, whose approach to his career has seen him seek out new opportunities at every turn. “My attitude has always been to just go for it, to take that step and to be the disruptor. You have to be willing to represent yourself in any new situation; to come in and say, ‘this is what I need, please provide it for me’.”  As John sees it, people in positions of influence—school teachers, college lecturers, and bosses and managers at work—have an enormous impact on the opportunities open to people with disabilities. “I want to get the message out there that it’s just so important to give people the time and space they need to perform at their best, to engage with them, and take the time to understand what they need to contribute in the best way they can.” John, who has cerebral palsy, grew up in south Belfast and, after completing his A Levels, went on to Queen’s University Belfast to study for a degree in land use and environmental management. “A lot of my school friends dropped out after their GCSEs. They didn’t go on to do A Levels, but I didn’t grow up seeing many people with disabilities around me, so I’ve never taken my education or career for granted,” he explains. “I was passionate about getting as much out of the educational experience as I could. Going to college was a big milestone for me. I hadn’t always been sure I’d get to do it because of my disability.” Be your own advocate It was at this time that John learned the value of speaking up, asking for what he needed, and becoming his own advocate. “It was the first time I was really on my own. I didn’t have my parents behind me and I was suddenly in a much bigger environment than I had been in at school. It was the first time I found myself having to fight for my needs and rights,” he explains. The experience taught John the importance of determination, and gave him the confidence to begin looking further afield to progress his career and education. He decided to apply for a one-year placement with Study USA, a British Council initiative, which allows third level students to spend a full academic year studying business in the US. His placement was with Monmouth, a private college in the midwestern state of Illinois. “That was really where my business education began,” he says.  “Up until that point, the only experience of accountancy I’d had was through my dad, but he just did a one-year course at Ulster University and then went into business.” John was “very open” to learning about accountancy and business, and potentially taking his studies in a new direction. “Really, I’d say my entire education and career to date has been driven by an openness to grasp opportunities, try new things and make the most of lots of different experiences,” he says. “I think this approach will take you in the right direction and, again, for people with disabilities, it comes back to that idea of being a disruptor. “It’s so important to reach out, to be seen and counted, and have access to the same experiences, opportunities and choices as people who do not have disabilities,” says John. “For the most part, people have been accepting of my difference, curious to know more about me and how they can help.  “The bigger challenge for me has been navigating the organisations and institutions that are not quite sure how best to support people with disabilities. “I feel that, in my own journey from school to college and on to work, I’ve really had to be my own trailblazer in terms of getting things done, but I’ve also seen a lot of change in those years.  “Even in terms of Chartered Accountants Ireland as an organisation, its approach to helping people with disabilities continues to improve and that’s encouraging. The Institute has agreed to my request to introduce disability awareness training for staff and I really welcome that.” Path to accountancy While he enjoyed studying for his degree in environmental management at Queen’s University, John was also aware that better career opportunities might lie elsewhere. “I remember, when I was at Monmouth, being encouraged to come up with business ideas. It was just a different way of learning and I think it really helps you when you go into the working world,” he says. “So, I came home and finished my degree, but I also took a part-time job as a book-keeper and started learning about debits and credits. My parents were a big support at that time, because they were both responsible for the accounts in their jobs.” In late 2011, the year after his graduation, John decided to apply for a training position with EY in Dublin. He was offered a six-month internship and went on to work with the firm for five-and-a-half years, qualifying as a Chartered Accountant and becoming an Audit Senior. “Joining EY was a really big step for me. It was my first full-time role and my first experience working in a Big Four environment. Starting with the six-month internship was really key for me because it meant I knew what to expect and how best to navigate my way around,” he says. Importance of managers During his years with EY and in subsequent roles in banking and industry, John has learned time and again the critical role managers can play in supporting career progression. “I remember once I had one manager who, I felt, wasn’t supporting me or interested in me as a person.  “I thought, ‘something has to change’. There were other managers I got on really well with, so I asked to switch teams. I took control of the situation. “The person I talked to about switching teams, who was also a Chartered Accountant, was an enormous help and support to me at that time. They are also someone I’ve returned to over the years to ask for advice and input.” Such support has been crucial in helping John to navigate his career path and make the right decisions.  “It just goes to show how important it is to speak up and advocate for yourself. Anyone can find themselves in a situation where their manager isn’t open to promoting them or supporting their needs and progression,” he says. “You might not have exactly what they’re looking for on the face of it, but if they’re not open to seeing your strengths, they won’t be able to see how a different approach could result in a better outcome for you and for your team.” The result of this approach to managing people is often a poor culture and a higher turnover of staff of all abilities, John says. “I wasn’t the only one on my team who was frustrated with how we were being managed, but I think I found it especially difficult. I had identified what I wasn’t able to do myself, but there was no room for genuine communication.” He continues: “These days, I am more confident about asking for that communication and understanding. I’ll give everything 110 percent. Living with a physical disability can present acute challenges, but I find solutions and I put them into practice.  “I am an advocate for the promotion of differing abilities in the workplace. I think it’s crucial that we respect and value each colleague’s abilities and I take pride in my work and in leaving things better than I found them and having a positive impact on the people around me.”

Maeve Dermody tells Accountancy Ireland about her experiences in the workplace as a person who is profoundly Deaf For Maeve Dermody, ACA, a truly inclusive workplace is one that supports open communication, diversity and allyship. Dermody, who qualified as a Chartered Accountant in 2018 and now works for Revenue, has had varied experiences in the working world—some positive, and some negative.  Above all, she has learned the true value of open communication, a willingness to embrace difference, and the strengths and benefits it can bring to the working world.  “My biggest advice to employers would be to focus always on a person’s abilities, not their disabilities,” Dermody says. “I am Deaf, but I have strong communication skills. I am very good at writing reports and communicate very effectively this way. I am a team player and I always want to contribute, to discuss my work, and find out about other people’s work.” Dermody joined Revenue five years ago as an Executive Officer and was promoted to Administrative Officer in 2019. “I have been given a lot of space here to learn, develop and grow in my career,” she says. “Not all jobs are positive, and I think this has really shown me the enormous value of providing the right supports for people with disabilities and creating the right culture of communication.” The right support Dermody has the full support of her line manager at Revenue and is provided with an Irish Sign Language (ISL) interpreter at all team meetings. “This means I’m able to converse, interact and engage. The conversation flows naturally because I can express myself. Without an ISL interpreter, it would be challenging in a group environment to engage effectively,” she says.  “I can lip read in one-to-one meetings, but, in a group setting, it is much more difficult because I am trying to keep track of everything around me.” This practical support also helps to foster a sense of inclusion and allows Dermody’s colleagues to benefit from the full scope of her skills and expertise as a Chartered Accountant.  “I haven’t always had a positive experience at work. A few years ago, I worked with a small firm in private practice, and I found it very challenging,” she says. “At team meetings with colleagues, there was no interpreter present, so I found it hard to understand the messages my colleagues were communicating.  “We would be sitting together around a table and people beside me would be chatting and looking at their notes, so I wasn’t able to lip read.  “I was the only Deaf person and felt I couldn’t make the role work for me, because of the lack of support in the environment. “With Revenue, my experience has been completely different and so—to all employers—I would say, ‘be an ally, listen and work together with the individual, because everyone has different needs’.  “My husband is Deaf too, but his level of hearing is different which means he can use the phone, whereas I can’t, but we have the same preference to have an ISL interpreter at meetings.  “At the same time, another person who has the same level of hearing as me might prefer to use captions. Different people have different preferences, needs and accommodations and that is why it is so important to talk, to ask questions, to listen and respond to the individual.”  Maeve’s story Dermody grew up on a farm in Mullinalaghta, Co. Longford, with four older brothers. “One of my brothers has a hearing loss and I am profoundly Deaf, so we have both had very different experiences. I went to a Deaf school and he went to a mainstream school. “I grew up seeing him progressing a few years ahead of me—going to college and getting a job. I thought, ‘I’m going to grow up and I’ll do the same because he’s been able to do it’.” At first, Dermody set her sights on becoming a primary school teacher. “I went to a Deaf school in Dublin and I knew that St Patrick’s College offered a teacher training course in Deaf education. That’s what I wanted to do,” she says. Dermody discovered, however, that she couldn’t apply for a place on the course because the Deaf school she had attended had not taught Irish as a subject at either primary or secondary level.  This meant she did not have Irish as a Leaving Certificate subject—a requirement for primary teaching in Ireland. “I didn’t have the option of doing my primary teacher training in Ireland. I could have gone over to the UK, but I didn’t want to do that. I wanted to study here and be close to family and friends,” she says. Instead, she decided on a different career path; one that would allow her to use her strength in maths and interest in business to become a post-primary teacher. College life Dermody embarked on a degree in accountancy and finance at Dublin City University (DCU) in 2008 followed, three years later, by a professional diploma in education and a master’s in education. She is a qualified secondary school teacher, specialising in accounting and business studies.  Dermody’s college experience was positive, but it was also a new and unfamiliar environment. “When you’re in a Deaf school, it’s a bit like being in a bubble. You know all the teachers and everyone uses sign language. We had very small classes of just two to six pupils,” she says. She was the only pupil in her class to do the Leaving Certificate. “I had always wanted to go on to third level, meet people and socialise,” she explains.  “College is very new and different though when you’re coming from a Deaf school. You can feel a bit lost, but I was determined to roll up my sleeves and integrate.” As well as forming close bonds with her collegemates at DCU, and forging lifelong friendships, Dermody made use of the supports offered to Deaf students, including ISL interpreters and note-takers for college lectures. “I started to teach and I enjoyed it, but found myself wanting more from my working life. I’ve always been a problem-solver, so I started thinking instead about pursuing a career in accountancy,” she says. Dermody’s next port-of-call was AHEAD, the independent non-profit organisation working to create inclusive environments in education and employment for people with disabilities. “AHEAD is a really good organisation and they provide a lot of support in the workplace, both to the person with a disability and to the employer,” she says. Through AHEAD’s Willing Able Mentoring (WAM) programme for graduates with disabilities, Dermody secured two paid work internships with ESB and the Civil Service. “I started applying for jobs when I completed my internships, but I wasn’t having much luck. I decided that I needed more qualifications under my belt, so I started studying to become a Chartered Accountant,” she says. “As an organisation, Chartered Accountants Ireland was every bit as supportive as DCU, organising ISL interpreters and anything else I needed. “It was only when I started applying for jobs, both after graduating from DCU and completing my CA training, that I started to feel different. I could see my peers, who had similar grades but no disability, getting jobs. I wasn’t getting those same opportunities.” Path to experience To gain the experience she needed, Dermody took a part-time paid position with Reach Deaf Services. “That was a good start for me, and I was able to apply for other jobs while I worked there.” Eventually, Dermody was offered a fixed-term accountancy position and, from there, she joined St. Joseph’s School for Deaf Boys in Dublin as an accounts administrator. “I also started working as an administrative accountant with Deaf Village Ireland and the Sign Language Interpreting Service. I was working three different jobs, all fixed-term, but I wanted more security.” That was when Dermody decided to apply for work with the Civil Service and was offered her first position with Revenue. Government supports Even though her experience of working in the public sector has been overwhelmingly positive, Dermody would like to see greater emphasis at Government level on the provision of practical work-related supports for people with disabilities in Ireland. “I think the Irish government should look to the UK model of providing supports for people with disabilities. The Access to Work scheme there provides people with a disability with funding at an individual level, to help support them in the workplace,” she says. “This means the employer doesn’t have to be concerned about the cost of providing this support. The person with a disability receives the funding and the employer then confirms that the funding has been used.” On the other side of the coin, Ireland is better than the UK in terms of access for people with disabilities in social spaces.  “I would also like to see Irish Sign Language (ISL) included in the school curriculum in Ireland. ISL is one of our three official languages, yet it is not taught in our schools,” says Dermody. “If Irish Sign Language were on the curriculum alongside Irish and English, it would help to give people a basic understanding of sign language. That would make it easier to converse with Deaf people, even just through simple, everyday expressions like ‘please’ and ‘thank you’.”

Tony Ward tells us about his experiences starting his career as a Chartered Accountant and adapting to a new working reality after he began to lose his sight in his twenties I had a very ‘ordinary’ early life growing up in Monaghan. I was of a generation where it wasn’t so commonplace to go to college, but I was always reasonably academic and chose to study commerce at UCD.  I had no particular focus on going on to do accountancy, but I guess the subjects I studied were already oriented towards accountancy and business.  Looking back now, almost 40 years later, I don’t know whether I was lucky or smart, but choosing to become a Chartered Accountant turned out to be a great decision from a career perspective. I’ve never had any sense that I went in the wrong direction. I began my career in contract with a smaller firm—now long gone after many mergers over the years.  Like all trainees, I started at the bottom and found working at a smaller firm to be of great practical help. I qualified as an Audit Senior in 1989, moved to Deloitte for two years and, from there, went into a management role in practice. It was around 1990 that I became aware that things I used to be able to do fairly easily were becoming more difficult. I was losing my sight, but it wasn’t until 1994 that I was diagnosed with Retinitis Pigmentosa, a genetic condition that causes sight to degenerate over time. Those four years without a diagnosis were the most difficult for me, both personally and professionally.  I was desperately trying to survive in the sighted world and many things became more difficult, and eventually impossible.  It may sound strange to say it now, but it wasn’t obvious to me at the time exactly what was going on.  I think the human response when faced with all kinds of challenges is often to try to survive in the moment.  It’s perhaps only afterwards that we realise what was actually going on. My diagnosis in 1994 came as a huge relief. It’s hard to believe in 2022, but back then losing my sight meant that I basically had to stop working.  Computers and adaptive technology were in their infancy, and I just couldn’t read any more.  At that point, I embarked on a new career pathway—less direct than most in the profession.  Technology began to improve and one of the most important decisions I made was to learn to touch type.  Around that time, I and others were gradually starting to realise that, just because I couldn’t see didn’t mean I didn’t have the skills to do a lot of the jobs sighted accountants could do—think clearly, solve problems, and be part of a team.  Definitely then, and even now, people can be too easily judged at face value. Unfortunately, this means that your most easily identifiable, defining characteristics—in my case, my sight loss—can be a real disadvantage.  At that time, many doors were closed—both to me, and on me. Fortunately though, there were enough open doors, even then, to allow me to pursue a rewarding, constructive and worthwhile career. Here, I have to mention Access Support Services at Chartered Accountants Ireland. I was extremely reluctant to engage with the service at the outset. I thought, “what can they really do apart from sympathise with me?” But, for whatever reason, I decided to reach out, initially to Derek Snow and then Oliver O’Brien. Oliver (who only recently retired from the Institute) was a huge support. He encouraged and facilitated me to go to Institute events and introduced me to others. For that, I am extremely grateful.  I think the biggest challenge people with disabilities face is often other people’s perceptions and attitudes.  This is much improved nowadays with genuine engagement on equality, diversity and inclusion and a much more diverse society than 30 years ago. Challenges remain, however, including preconceptions of what blindness means and assumptions about what you can and can’t do.  There are also the very practical challenges involved in everyday tasks—reading hard copy documents, shopping, transport, participating in sport, traveling, the basics of working full-time, and walking into things if I’m not careful!  I suppose one way for a sighted person to understand my experience would be to close your eyes and try to go about your daily life. That said, technology and a multitude of very considerate family members, friends and colleagues have all made this easier for me.  So, while everything starts from a position of potentially being difficult, good planning and decent workarounds make it all much more possible.  Nowadays, I enjoy a very fulfilling work life, and numerous work- and career-related interests, but getting to this point was neither easy nor inevitable. In my experience over the years, very few employers actively start from a position of discrimination—but we all know, through training and education, that bias is ever-present, including unconscious bias.  The phrase I use to describe how this works is, “the making of assumptions”. We all make incorrect assumptions all the time based on sub-optimal information or flawed perceptions.  So, while the world of employment has improved greatly over the years, much more remains to be done to ensure that we are truly fair and unbiased. People with disabilities and other differences deserve a fair crack at fulfilling their expectations of obtaining and retaining work.  We wouldn’t like to be discriminated against, so we should not put ourselves at risk of discriminating against others. My advice to employers here is to be fair and equitable. Don’t make assumptions about employees or candidates who have disabilities and get professional advice if you need it.  There are organisations like AHEAD (ahead.ie) working to create inclusive environments in education and employment for graduates with disabilities, and many other sources of excellent information about people with specific disabilities that will give any employer the resources they need.  The essential ingredient here is that the employer is genuinely open to all of this and has the right attitude. Without this, it doesn’t matter how many resources you have—­­it will be inadequate. It was one small private company I worked with 20 years ago that gave me my first breakthrough in obtaining employment in an open competition.  I am very good friends with the Director to this day. When I asked him why he gave me the job, he said I was the best candidate. He knew I would be able to do the work as a person with a visual impairment because, he said, “I figured you would figure it out and that it was really none of my business!” That was worth more than anything to me and I flourished in that role for six years. It just shows how much attitude matters. The details can always be figured out, unless the person hiring you really believes your disability is an issue—then, it won’t work. I had a similar experience with The Wheel where I was Director of Finance from 2016 to 2022. They were a bit apprehensive about hiring me, simply because they didn’t know what they didn’t know. In other words, they didn’t know how I would interact with the normal volume of information any Director of Finance would be expected to handle—but, if I can put it this way, they took the risk. By risk, I don’t mean me as a person or professional. What I mean is that they were comfortable not fully knowing or understanding what they didn’t yet know or understand. If you look at equality for people with disabilities in the wider working world and in society as a whole, the bottom line for me is that, if we are treated fairly and equitably, then we have the same likelihood of benefiting from opportunities in life as everyone else.  As it stands, unemployment rates among people with disabilities are much higher than in the general population. There may be genuine reasons for some of this disparity, but definitely not all of it—and employment opportunities really matter because there are so many benefits that go along with them. I am talking about active engagement, social interaction, economic benefit, and the power to make decisions about where and how you live, and what you do.  So, to the extent that people with disabilities might need some extra support or flexibility in the work environment, the benefits for these people, for employers, and for society as a whole far outweigh any efforts, costs or flexibility required. If it is done the right way with the right support from the Government and from employers, we will all reap the rewards.

Striking the right balance between work and play can be tricky, so what can employers to promote a healthy workplace culture? Dr Adam Greenfield outlines his top tips Professional services, such as accountancy firms, are frequently regarded as high-pressure environments with workloads that may ebb and flow throughout the fiscal year. With this understanding, these industries need to pay particular attention towards the work-life balance of its workforce, with a finer focus on the triad' work, rest, and play'.  Maintaining a balance between these three elements is crucial for employee productivity, well-being and happiness.  Work 'Work' is the most obvious element of the triad and, understandably, the primary focus of most accountancy firms. However, it is important to note that tight deadlines and excessive work can lead to chronic stress, negatively impacting productivity and employee well-being. If unaddressed, these high-stress levels may naturally lead to burnout and the likelihood of long periods off sick.   Leaders should encourage their teams to set manageable goals and create realistic work schedules to prevent burnout. This can be achieved by establishing clear expectations around work priorities and providing adequate resources to help employees complete their tasks. Include the provision of access to the necessary technology and software, as well as up-to-date training and support for employees to stay current with industry developments. Managers should also ensure that their teams have a healthy work-life balance. One way to achieve this is by encouraging employees to take time off when needed and not expecting them to work unreasonable hours or send/receive emails late into the night.   Rest The second aspect of the triad is 'rest', allowing employees to recharge and refresh their minds during the day and overnight. Research shows that poorly slept and tired workers are generally less motivated and are more likely to make critical errors with their work. This can be costly and time-consuming for the organisation, causing potential reputation damage for both the individual and the company. Rest is vital and should be encouraged by permitting regular breaks throughout the day, monitoring the team for signs of fatigue, and prioritising staff requesting additional time off for stress. In addition, firms should consider offering flexible schedules, providing paid time off, and allowing employees to work remotely whenever possible.  Play 'Play' is the third element of the triad and can be commonly overlooked in accountancy firms. However, 'play' is an essential factor for employee well-being and can help to boost productivity, team cohesion, communication, and collaboration. Managers should encourage employees to engage in activities they enjoy, whether team-building, social events, or other fun activities. Examples may include a lunchtime sports club, group walk, or quiet after-work social. These activities can help foster a positive and supportive work environment and a positive feedback loop towards further productivity and employee well-being.   A positive work-life balance In addition to encouraging work, rest, and play, team leaders and managers can also help to promote a positive work-life balance through various other provisions.  For instance, resources for stress management, employee assistance programs, counselling services and self-help workshops are valuable assets that can be utilised to support the workforce.  Furthermore, by promoting a culture of self-care, managers can help to reduce employee stress and burnout and maintain a team's productivity and well-being. Work, rest, and play are all important aspects of professional life that must be in a delicate balance to maintain high productivity levels and employee well-being.  If the organisation's culture is focused on these aspects rather than simply the bottom line, a workforce is much more likely to feel supported and continue to engage in their work with diligence and care.     Dr Adam Greenfield is a leading chiropractor and co-founder of WorkLifeWell

With new EU cybercrime rules coming down the line, now is the time to step up your organisation’s ICT security strategy, writes Neil Redmond Increased regulatory scrutiny is among the five most important ways businesses have been impacted since 2020, according to the Irish senior executives who participated in PwC’s Global Digital Trust Insight Survey 2023. Regulators are becoming increasingly cognisant of the risk posed by cyber threats to businesses and their customers. As part of new legislation, the European Union (EU) aims to address cyber, and information and communications technology (ICT) risks. By understanding these regulations and knowing how to prepare, organisations can act now to align with the requirements of new EU legislation. Four key pieces of the new legislation are introducing additional requirements for business: the Network and Information Security Directive Revision 2 (NIS2); the Digital Operational Resilience Act (DORA); the Digital Services Act (DSA); and the Digital Markets Act (DMA). How can your business best prepare to comply with these legislative changes? By taking the following key actions, you can ensure that your organisation is ready ahead of time. 1. Assess the maturity of your organisation’s cybersecurity Reviewing your business’s systems and information security is critical to prepare for the upcoming regulations. Assessing your organisation’s cybersecurity and ICT risk management controls can provide executives with valuable information regarding the business’s cyber risk profile. By finding potential compliance gaps in their cybersecurity, firms can improve their posture before legislation comes into force, mitigating the risk of non-compliance and subsequent consequences, such as brand damage and financial penalties. 2. Test your business’s operational resilience at the enterprise level As part of a cyber maturity assessment, evaluating the organisation’s resilience to disruptive events will be key in preparing for upcoming regulations. While executives may believe that their business is robust and can continue to operate in adverse circumstances, the testing of business continuity and disaster recovery plans allows businesses to measure their resilience and continuously enhance their cybersecurity posture. The first step is to ensure that the organisation has contingency plans for different scenarios. These scenarios should be exercised and iteratively improved to ensure that they are fit for purpose. Examples include switching failing systems to backups or simulating a response to a malware attack on your network. All relevant stakeholders, including third parties, should participate in the testing of contingency plans—in today’s world of sophisticated threat actors, executives must ensure that their entire business is ready to respond. 3. Enhance your incident reporting processes A cornerstone of NIS2 and DORA is reporting ICT and cyber incidents. Businesses need to review their existing reporting channels and procedures, implementing processes to monitor, log, classify and report on incidents consistently. An effective way to ensure that reporting is standardised and complies with regulatory requirements is to centralise incident reporting across the organisation. Establishing formalised processes for managing reported incidents can support businesses in fulfilling their regulatory obligations. Furthermore, the DSA and DMA will require organisations to report to authorities regularly. National Digital Service Coordinators will be established, and they will be responsible for compliance monitoring. Reporting to new supervisory bodies will be a feature of these upcoming legislative changes—a trend likely to be seen in future regulations. 4. Analyse and understand your ICT and third-party cyber risk Today’s business world is deeply interconnected, with organisations often relying on a wide network of suppliers to conduct business. Reliance on third parties can increase the organisation’s susceptibility to cyber-attacks, increasing both the attack surface available to threat actors and the potential for attacks to affect operations significantly. Regulators have grown concerned about gaps in organisations’ third-party risk management processes in recent years as businesses become increasingly reliant on third parties. NIS2 and DORA build on existing guidance and legislation, such as NIS1 at the EU level and the Central Bank of Ireland’s Operational Resilience Guidelines and Guidance on Outsourcing at the national level. In particular, DORA will set out many provisions for businesses to report on the ICT risks stemming from their dependency on third parties, requiring them to describe this reliance in detail. Analysing your business’s exposure to cyber risk through the lens of third parties is a key means of securing your customers’ data and satisfying regulators. Neil Redmond is Director of Cybersecurity Practice at PwC Ireland

Brexit has increased the customs exposure of many businesses. Brian McNamara explores four common misconceptions and what companies can do to mitigate associated risks In the two years since Brexit, the customs exposure of many businesses has increased significantly. There is still confusion over the exact requirements and obligations of a company trading in a customs environment. This lack of understanding of the rules can increase the risk of non-compliance. Here are four common customs misconceptions and what steps should be taken by organisations and their Chief Finance Officers to mitigate customs risk. 1. Outsourcing declaration filing to a third party reduces an importer's customs obligations Most traders outsource the filing of their customs declarations to a freight company or clearance agent. Despite this, it is essential to remember that the importer remains completely liable for the accuracy of the customs declarations filed in their names. Any errors or omissions contained in the declarations are the trader's responsibility, as are fines and penalties that might be incurred. While it is perfectly reasonable for a company to outsource the filing of their customs declarations, the importer must take ownership of the customs declarations filed in their name. "Our freight company takes care of them" is not a valid response. Finance departments need to ensure the accuracy of their customs data, and regular spot checks should be carried out on declarations filed. 2. Customs risk ends at the port Just because a shipment passes through the port does not necessarily mean the customs data in the declaration filed is correct. The right combination of characters entered in the import system will get a shipment green routed. Customs only check a small percentage of the shipments coming in, but the importer must file an accurate customs declaration. A trader must also retain copies of all backup customs documents for four years after the date of import. So far, Revenue has been relatively lenient in auditing companies with an increased level of customs exposure; however, this is likely to change soon. Import duties are an EU tax, and Revenue must ensure compliance. Businesses trading in a customs environment need to be customs audit ready. Finance departments should get a clear picture of which outside agents file declarations on their behalf and how they can access copies of their customs declarations. 3. Goods being sent for repair are not subject to import duty Once goods cross a customs frontier, import duty is payable on the value of those goods, even if the movement does not relate to a buy/sell arrangement, such as goods going to the UK for repair. In the absence of a trader using a customs special procedure, such as outward processing (OP), EU import duty is due on the full value of goods coming back from the UK following repair. To remain customs-compliant, the full value of goods for repair should be shown on the invoice or packing list (not the cost of repair or some reduced valuation). Businesses should use OP to gain relief from import duties on returning repairs. Customs authorities recognise that sometimes goods need to cross borders for repair—inward processing (IP) and OP are in place to allow businesses to gain relief from import duties on such movements. Businesses should apply for a full OP authorisation with a regular volume of non-EU repair activity, or 'simplified' OP can be used to gain relief if the repair activity of a trader is only occasional. 4. There is no customs risk for exporting companies It is true that customs risk for importers is higher than for exporters. However, exporters are still responsible for the accuracy of declarations filed in their names. Customs risk increases for export companies providing Statements on Origin (SoO) on their invoices. An Irish exporter may provide an SoO to allow a UK customer to claim preferential import duty rates on EU-origin goods. By providing an SoO, the customs risk shifts from the UK importer to the Irish exporter. Therefore, careful consideration should be given before issuing one. When providing an SoO, an exporter should have confidence that their EU-origin goods comply with all customs rules of origin and have the documentation to prove it. Further, this documentation should be retained for a period of four years to facilitate an inspection by Revenue. With a myriad of fines, penalties and the payment of back duties on offer, non-compliance can be costly for a business. Managing a customs audit can be challenging if a company is not adequately prepared. CFOs should get familiar with their customs obligations now to minimise the likelihood of compliance issues in the future. Brian McNamara FCA is Managing Director of SwiftFile Customs Clearance & Advisory

Sometimes, the hardest part of networking isn’t the meet-and-greets, but the follow-up. Jean Evans gives us her five top tips on how to maintain and nurture your network. Many people confidently attend networking events and meetings but falter on the follow-up. And as we all know, it’s all in the follow-up. That’s where the magic happens. Why you should nurture your network Building relationships take time, effort, energy and intention. Importantly, your relationships must be built and developed strategically on a foundation of authenticity. You must have done this before having an ‘ask’, like looking to someone for help, an introduction or a connection. You have to be intentional and focused about the follow-up. Know how much time and effort you can put into the process, and how best you can nurture relationships with the people in your network. Here are a few pointers to help nurture your network. 1. Keep a pad and pen handy I never leave home without a little notebook and pen. I never know when I might meet someone or come across a piece of information, a useful podcast, an article, or something I can share. The pen and paper are for writing down any useful information obtained, and the person to whom I want to pass this valuable information on to. Alternatively, there are loads of opportunities to find interesting bits and pieces others might value on social media platforms. If you come across an image, article or even an appropriate meme you think could be good, screenshot it and send it on to them. 2. One-to-ones Get to know people in your network on a more personal basis. This is imperative if you want to move the needle on the relationship. This can be done in person (best option), digitally, or by phone. However you do it, the key is taking the time to really connect with the other person. 3. Broker introductions Two people may be in the same network and not know each other yet, but you think these remarkable people should get to know each other. Share the love (and they’ll surely share it with you)!  If you hear of someone who is looking to hire, needs a job or is looking to source a supplier, and you know the perfect person, make a introduction by sending a friendly email to both, highlighting their expertise and suggesting they connect to move forward. You can also separately discuss the connection with the concerned party and assess if it’s appropriate in terms of need, fit for time, etc., before making an introduction. 4. Send a letter or message I have a stash of thank-you cards and notelets, and I also keep a roll of stamps to hand. Write a handwritten note of thanks to people who help you by nurturing their connection to you. Social media platforms are great for reminding us of birthdays, anniversaries and new jobs, so utilise this service by reaching out to those marking a special occasion. Don’t just use the pre-written text suggested by LinkedIn or other platforms. Personalise it. The recipient will remember your kindness, and you’ll develop that feel-good factor. 5. Invitations Invite people in your networks to visit other networks that you find valuable. If you’re learning, engaging, connecting and growing, why not share this opportunity with a friend, colleague or acquaintance? Jean Evans is the Founder of Network Me.

The start of a new year has brought fresh challenges for employers. Gemma O’Connor outlines six of the biggest hurdles ahead and what organisations can do to prepare The pandemic may be all but over, but some of the sweeping changes and challenges it brought to the way we work look likely to stay. Here are six of the biggest hurdles facing employers in 2023. Increased labour costs According to recent Peninsula Group research, the cost of doing business remains a key concern for employers as we enter 2023, and understandably so. While inflation in Ireland has come down one percent since October 2022, companies are still feeling squeezed by the cost of living. Further, a new survey conducted by Peninsula found that 72.3 percent of business owners listed rising costs as their number one concern going into the new year.  And while energy costs continue to impact the cost of living, which is having a knock-on effect on the cost of employment, the Government's Temporary Business Energy Support Scheme is now in place and will go some way towards alleviating these concerns. Return to the workplace tension As last year drew to a close and memories of COVID-19 restrictions became more distant, more employers asked their staff to return to the workplace. Not all workers were happy to do so, however, instead demanding permanent working flexibility. This conflict looks set to persist in 2023. Hybrid working arrangements have been the answer for many employers and their staff. Whether a hybrid model will continue to be a long-term policy for employers remains to be seen. Recruitment and retention Last year’s economic recovery following COVID-19 lockdowns combined with labour shortages to give employees increased bargaining power in the labour market. This trend saw leadership teams spending more time on recruitment and retention. Despite this increased spend, employers may regain the upper hand if Ireland slips into recession this year. Right to request remote work Government confirmed last month that the planned Right to Request Remote Working Bill would be shelved. Provisions allowing employees to request remote work will now instead be part of the Work Life Balance and Miscellaneous Provisions Bill, which is progressing through the legislative process. The following conditions will attach to the right to request remote work according to the latest draft legislation: Employees will be required to have completed six months continuous service before they can avail of the right to request remote work. Employers will get a period of four weeks (with an option to extend to up to eight weeks) to consider a request before approving or denying it. Employers must consider both parties' needs when considering a request and provide staff with the grounds for a refusal. The Workplace Relations Commission is expected to produce a Code of Practice to assist employers and employees with handling requests.   It is expected that the Bill will be passed into law early this year. Employers must familiarise themselves with the new law and be prepared to handle employee requests. Ignoring requests may lead to employees bringing claims to the Workplace Relations Commission. Statutory sick pay The new statutory sick pay scheme came into effect on 1 January 2023. Employers should ensure that they are prepared to comply with their obligations under this new scheme. For example: Reviewing payroll processes to ensure the new sick leave payments will be adequately reflected in payslips. Failure to keep proper records is an offence and attracts a maximum fine of €2,500). Reviewing employment contracts and policies to see if existing sick leave policy needs to be updated. No action may be necessary if the terms of the existing policy are more generous than the statutory payments outlined above. Notifying staff in writing about any changes in employment terms required under the statutory sick pay legislation. New public holiday in February Finally, a tenth public holiday becomes a permanent date in the calendar in 2023. St Brigid's Day falls this year on Monday 6 February 2023. Employers should ensure payroll is up to date and staff receive the appropriate paid leave or relevant alternative entitlement for this new public holiday. Gemma O'Connor is Services and Operations Manager at Peninsula Group

With data being touted as the new oil, organisations need Chief Data Officers to build the infrastructure required to get the ‘oil’ into the hands of consumers. Eoin O’Reilly explains why Chief Data Officers (CDOs) can be leaders, creating new ways to unlock the value of data, building the right foundations and infrastructure, and using insights to drive businesses forward. Here is an overview of the work CDOs do and its place in the wider organisation. A strategic value driver According to research conducted with data leaders for EY’s CDO Report 2022 on the Emerging Role of the Chief Data Officer in Ireland, data is now recognised as a foundational asset for every business, and Irish organisations will require dedicated senior executives to manage this asset. The rise in both the volume and value of data now being created has led to the emergence of a new senior executive role whose responsibility is to maximise and protect the value of an organisation's information. The need for the CDO has gained widespread acceptance as businesses turn to data to support informed decisions, guide strategy, and deliver competitive advantage. CDO and CTO The number of businesses led by US corporations hiring CDOs is growing rapidly. The EY Ireland report shows that the organisations with the most successful appointments tend to have a clear view of the interdependency between the role of the CDO and that of the Chief Technology Officer (CTO). These organisations have come to the correct conclusion that the roles are so interdependent that the CDO can't succeed without the right technology and platforms to capture, orchestrate and manage data. The CTO needs high-quality data to feed into those digital platforms. It is argued that the roles are so mutually dependent that neither can succeed if they don't collaborate. The data collected by core digital platforms can be almost valueless without a CDO. Conversely, brilliant insights could be left unactioned if they are not put in the hands of the right people in the right place at the right time. C-suite role As a result of the greater buy-in to the value of data on the part of CEOs and C-suites, all the executives interviewed for EY Ireland’s CDO report believe that the CDO plays a highly strategic role in Irish organisations, and that the importance of the position is growing. It’s not surprising, therefore, that demand to include the CDO in the C-suite is growing. Data reporting Focusing entirely on the C-suite may be missing the point, however. The more pressing issue here is the reporting line. The CDO can ensure that the data ‘agenda’ doesn't get buried under other layers of organisational red tape, and that it is communicated with clarity to the right people at the right time, thereby delivering long-term value for the organisation. An effective CDO The point has now been reached where organisations can no longer afford to be without a CDO if they want to maximise the value of their data as a decision support tool and competitive differentiator. The priority from here should be ensuring that the CDO is given the resources and seniority to execute the role effectively. Eoin O'Reilly is Partner, Head of Data and Analytics at EY Ireland