Despite severe economic challenges, Northern Ireland has avoided the wave of corporate failures seen in England and Wales, though future risks remain uncertain, writes Gareth Latimer Since the onset of the global pandemic in March 2020, assessing the restructuring market has become increasingly important. This is evident by the recent publication of The Northern Ireland Labour Market Report and The Company Insolvency Statistics for Northern Ireland, which gives a detailed analysis of redundancies and insolvencies in Northern Ireland. Below, we discuss what this trend could mean. Redundancies and insolvencies in Northern Ireland Published in July this year, The Northern Ireland Labour Market Report has put the annual number of confirmed redundancies in Northern Ireland up to June 2024 at 2,560 – almost double the figure for the previous year (1,340). Similarly, The Company Insolvency Statistics for Northern Ireland for June 2024 highlighted 17 corporate insolvencies in June 2024, which was 13 percent higher than in June 2023. Understanding the statistics As with any statistics, we must delve beyond the headlines to see their impact on the Northern Ireland market. The raw numbers tell one story, but the underlying trends and their broader implications reveal much more about our economic landscape. Initial predictions and government intervention When the COVID-19 pandemic hit the UK in March 2020, some commentators predicted a ‘tsunami of corporate failures and mass redundancies’. Thanks to the introduction of the Coronavirus Job Retention Scheme, commonly known as the Furlough Scheme, the predicted large number of redundancies did not occur. Additional liquidity measures Several other liquidity measures, including the Bounce Back Loan Scheme (BBLS) and the Coronavirus Business Interruption Loan Scheme (CBILS) also played their part in staving off the large number of corporate failures many had predicted. Financial lifelines, in the form of loans and grants, were available to allow companies to survive the various lockdowns and the unprecedented drop in GDP in April and June 2020. However, having recovered from the economic effects of the pandemic, we then had the Russia-Ukraine war and the subsequent energy crisis. High inflation and interest rates followed. It is no wonder, then, that companies have been struggling. New insolvency procedures To help companies facing insolvency, two new procedures were created when The Corporate Insolvency and Governance Act 2020, which also applied to Northern Ireland, was implemented. Company moratorium: Designed to give struggling businesses formal breathing space in which to explore rescue and restructuring options, free from creditor and other legal action. Except in certain circumstances, insolvency proceedings cannot be instigated against a company during the moratorium period. Restructuring plans: Introduced to support viable companies struggling with unmanageable debt obligations. These plans allow the court to sanction a plan that binds creditors to a structuring plan if it is deemed fair and equitable. Creditors vote on the plan, but the court can impose it on dissenting classes of creditors (cram down) if the necessary conditions are met. However, despite the introduction of these new procedures, between 26 June 2020 and 30 June 2024, there was only one moratorium in Northern Ireland and no restructuring plans. The figures suggest that these options may hold less relevance for the Northern Ireland market compared to more traditional restructuring options. Labour market report insights One might have expected the Northern Ireland Labour Market Report to paint a bleak picture. The UK economy slipped into a mild recession in 2023, and the cost of living crisis continues. However, the anticipated surge in redundancies due to corporate failures has not materialised.  In fact, the unemployment rate in Northern Ireland for March to May 2024 fell over the quarter and the year to 2 percent. It is useful here to analyse and compare the June 2024 insolvency statistics. Northern Ireland saw 17 company insolvencies. And while each of these cases demonstrates financial distress for the company and employees involved, considering the economic backdrop, one might have anticipated a higher number of corporate failures. Indeed, this picture contrasts sharply with the headline insolvency statistics from England and Wales, where registered company insolvencies in June 2024 reached 2,361 – 16 percent higher than in May 2024 and 17 percent higher June 2023. The number of company insolvencies in England and Wales have remained much higher than those seen both during the COVID-19 pandemic and between 2014 and 2019. The disparity suggests that Northern Ireland’s insolvency rate is proportionately lower than that of England and Wales. Whether this resilience will hold, or if the rising tide of corporate failures in England and Wales will eventually reach these shores, remains to be seen. Future outlook with new government Given the recent Labour Party landslide victory in the UK, many are wondering how this shift will impact corporate failures and job redundancies. The new Chancellor, Rachel Reeves, is poised to play a crucial role. A former Bank of England employee, Reeves has continually stressed the importance of fiscal discipline, and given the current state of public finances, she may have no choice. It appears that the economic strategy is to grow the economy, and this will improve the Treasury coffers; easy to say but harder to deliver. The future It seems that in 2024, Northern Ireland has been somewhat insulated from the wave of corporate failures sweeping through England and Wales. While specific factors contribute to this relative calm, the recent reports suggest that, despite ongoing economic pressures, we’ve seen more of a ripple than a tsunami of insolvencies. Thankfully, the anticipated surge in corporate failures has not materialised. Clearly, this is positive news for the economy. Yet, with the recent economic headwinds, one can’t help but wonder if we are simply delaying the inevitable. Will 2025 finally bring the wave of corporate failures some have been expecting? Only time will tell. Gareth Latimer is a Director at Grant Thornton NI

Fractional executives can bring genuine value to business leaders, offering specialised knowledge and niche experience on a flexible basis, writes Tony Dignam The business landscape has undergone significant transformation in recent years, driven by advances in technology, economic shifts and evolving work patterns.  One notable trend that has emerged is the rise of the fractional executive. These seasoned professionals offer their expertise to multiple companies on a part-time or “fractional” basis, providing strategic leadership without the commitment of a full-time role.  What is a fractional executive?  A fractional executive is an experienced leader who offer their services to businesses on a flexible basis as and when needed.  They can occupy various roles such as Chief Finance Officer, Chief Marketing Officer, Chief Technology Officer, and more.  These professionals can bring a wealth of experience and specialised skills to the table, helping companies navigate complex challenges and phases of growth or change.  Benefits of the fractional executive The concept of a fractional executive is not entirely new, but it has gained significant traction in recent years.  Economic uncertainties and the need for cost-effective solutions have driven many businesses to reconsider traditional employment models.  Hiring a full-time executive can mean a substantial overhead, especially for small and medium-sized enterprises that may not have the budget for high salaries and benefits packages.   Fractional executives offer a more affordable alternative, potentially allowing companies to access top-tier talent “on demand”.  The gig economy has revolutionised the way people work, with a particular emphasis on flexibility and project-based engagements.  Fractional executives fit perfectly into this model, offering their expertise for specific projects, limited periods or ongoing for an agreed number of days per week or per month.  This flexibility benefits both the executive, who enjoys diverse work experiences, and the company they work with, which can tap into specialised skills as needed.   Access to specialised expertise  Fractional executives often have broad subject matter expertise and plenty of relevant experience they can bring to the table and fast. Many will have held senior positions in their field and possess a deep understanding of best practices in their industry.  This knowledge can be invaluable for businesses looking to implement strategic initiatives or navigate complex change or growth.  Flexibility and scalability  One of the main advantages of fractional executives is their flexibility. Companies can engage them for specific projects, short-term needs, or on an ongoing fractional basis.  This scalability can give businesses more scope to adjust their executive resources according to their existing needs without long-term commitments.  Cost-effective leadership  Hiring a full-time executive can be a significant financial burden, especially for smaller companies. Fractional executives can offer a cost-effective alternative, potentially providing access to top-tier leadership at a lower cost.  This financial efficiency can be crucial for start-ups and SMEs operating on tight budgets, or for employers for whom long-term senior executive needs are harder to forecast.  Fresh perspectives  Fractional executives often work with multiple companies across different industries. This diverse experience means they can bring fresh and innovative perspectives to the businesses they serve.  Their ability to think outside the box can help companies to overcome challenges and seize new opportunities.  These executives sometimes also bring the benefit of fresh contacts and networks to senior teams, which can add value to scaling businesses. This means that the fractional executives can support and enhance business leadership by offering specialised expertise on a flexible, cost-effective basis.  Tony Dignam, FCA, is Managing Director of The Agile Executive

Embracing failure as a learning opportunity can drive innovation, turning business setbacks into strengths and fostering growth, writes Joanne Powell One of the challenges of innovation, advancement and continuous improvement is that sometimes getting it wrong is inevitable. No one likes to fail. We’re naturally predisposed to want to achieve and do better. Whether in life or in business, innovation, advancement and achievement are key markers of success. Traditionally, failure is either not an option or it is perceived as a sign of weakness. There is a growing body of thought that challenges traditional perspectives on failure, however. Business leadership author Simon Sinek talks about “falling” rather than “failure” – i.e. because you can get up from a fall and move forward. Amy Edmondson, Professor of Leadership at Harvard Business School, has written extensively on the notion that it “…doesn’t matter if you fail. It matters how you fail”. New York Times bestselling author, John C Maxwell, has noted that, “the difference between average people and achieving people is their perception of and response to failure.” There are any number of articles from Forbes, HBR and other notable journals in a similar vein. The key message is that failure can be a very positive catalyst for success – but only if done well. Doing failure ‘well’ means seeing it as a key part of the process: a chance to learn, to reflect and to move forward. It can also help to see lessons learned from failure as part of the inevitable tapestry of life. One of the ways I practice this myself is through inspiration from Mary Wallace, the Irish artist. Her popular Precious Bowls series is inspired by two Japanese concepts: Kintsugi: using gold or other precious metal to repair broken pottery. Wabi-sabi: seeing beauty in imperfection. For me, ideas around learning from failure really come together with the concept of wabi-sabi and the idea of “beauty in imperfection”. Some sources translate the concept of wabi-sabi as “nothing is perfect”, which is considered to be inherently positive as it suggests that there is always potential for 'more'. Kintsugi is an equally wonderful tradition, as it treats flaws and imperfections as part of the history of an object rather than something to be disguised or hidden. In the context of business, this can provide a constructive lens through which to process “failure” and to see the final product (or latest iteration) as being stronger and even more precious because of the journey it has travelled. I keep one of the Mary Wallace ‘Precious Bowls’ prints over my office desk. Every time I look at it, I’m reminded of three key principles: Every project or strategy has potential – The ethos behind any project or strategy should be one of continuous improvement. You must recognise that nothing is perfect and, instead, optimise the potential available. The ability to innovate and remain agile and open to change is key. Innovation requires us to take calculated risks and be open to the prospect of failure. It is knowing and understanding that sometimes we get it “wrong”, that strategies and innovations don't always produce the desired impacts. Wabi-sabi reminds me to take time to reflect and learn from “failure”, and to produce something better. Create and encourage strong, trust-filled and (psychologically) safe organisations. By creating a culture where stakeholders are encouraged to reflect and to find ways to improve, we are, in a way, creating our own version of kintsugi, where failure is recognised as an inevitable side-effect of any organisation that values innovation and progress. It is how we respond to these “failures” that matters most. Joanne Powell is Head of Advisor Services at QED: The Accreditation Experts

Advocating for yourself at work is vital, especially if you're a neurodivergent person. Antje Derks explains how to navigate workplace challenges and secure the support you need Advocating for yourself in the workplace can be challenging for anyone, but it can be especially daunting for those who are neurodivergent. Neurodivergence encompasses a range of conditions, including autism, attention-deficit/hyperactivity disorder (ADHD), dyslexia and other cognitive differences that affect how individuals think, learn and interact with the world. While these differences can bring unique strengths to the workplace, they can also create specific needs and challenges. Understanding how to ask for reasonable accommodations and advocate for yourself is crucial for thriving in your professional environment. Neurodivergent individuals often have distinct ways of processing information, communicating and completing tasks. These differences can be assets, bringing innovative perspectives and problem-solving skills to a team. The traditional workplace environment may not always be conducive to neurodivergent work styles, however, leading to potential misunderstandings and obstacles. Workplace challenges Neurodivergent individuals often face specific challenges in the workplace. Sensory sensitivities, such as noise, lighting or office layouts, can overwhelm a neurodivergent brain, leading to overstimulation. Organisational and time management difficulties can also arise, as can challenges with social interactions and communication. Many neurodivergent colleagues appreciate clear, explicit instructions and feedback. The more precise and direct the language, the better. While this approach works well for many, it's important to remember that neurodivergence varies greatly from person to person. There is no one-size-fits-all solution. Self-advocacy Self-advocacy involves understanding your own needs and communicating them effectively to others. For neurodivergent individuals, self-advocacy is essential for creating a work environment that supports their success. Here are key steps to advocate for yourself effectively. Familiarise yourself with workplace policies and legal protections related to disabilities In many countries, laws provide the right to reasonable accommodations. Take time to reflect on your specific needs and how certain accommodations can help you perform your job better. This might include flexible work hours, noise-cancelling headphones or written instructions for tasks. Schedule a meeting with your manager or HR representative to discuss your needs. Prepare to explain your neurodivergence in a way that highlights both your strengths and the challenges you face. Remember to use clear and specific language when requesting accommodations. For example, instead of saying, "I need a quieter workspace," you might say, "I need a desk in a quieter area of the office to help me concentrate better." It is important to try and frame your requests in a way that shows you are looking for solutions that benefit both you and the company. Emphasise how the adjustments will help you to be more productive and contribute effectively to the team by suggesting reasonable accommodations that are specific and actionable. For example, "Can I have a standing desk to help me stay focused?" or "Can we have a weekly check-in meeting to ensure I am on track with my projects?" will show your manager that you are actively seeking to take responsibility for yourself rather than shifting all the expectation on to them. Make reasonable adjustments depending on your needs Reasonable adjustments vary depending on individual needs and job requirements. Flexible work arrangements, such as remote work, flexible hours or modified schedules, can help manage sensory overload and align work with peak productivity times. Assistive technology, including speech-to-text software, organisational apps or noise-cancelling headphones, can aid concentration and efficiency. Physical workspace adjustments, like a quieter workspace, a standing desk or specific lighting, can create a more comfortable and productive environment. Structured communication, with clear, written instructions and regular feedback, ensures understanding and proper task execution, while regular check-ins can provide ongoing support and clarification. Additionally, access to a mentor or job coach who understands neurodiversity can offer valuable support and guidance. Monitor the effectiveness of the adjustments Communicate with your manager or HR about how well (or not) the adjustments are working for you. If things need tweaking slightly, don't hesitate to request them. Keep records Keep a record of your communications and any agreements made. This documentation can be helpful if you need to revisit the discussion or if there are any disputes. Promoting an inclusive workplace culture Advocating for yourself is an important step, but fostering a more inclusive workplace culture requires broader efforts from the whole organisation. Employers and colleagues can contribute by promoting awareness and understanding of neurodiversity through training and education, as well as encouraging open dialogue about individual needs and adjustments. But most importantly, it is about helping to create a supportive environment where all employees feel valued and included – whether they’re neurodivergent or not. By advocating for yourself and working towards a more inclusive workplace, you can not only enhance your own job satisfaction and performance but also contribute to a diverse and dynamic work environment where everyone's unique strengths are recognised and valued. Antje Derks is a Marketing Executive with Chartered Accountants Worldwide

Julia Rowan answers your management, leadership and team development questions A long-standing member of my team works to a good standard, but does the bare minimum. She is retiring soon. She takes no part in social outings and at team meetings, both in person and online, she works on her computer, only lifting her head to respond to direct questions. I have new people joining the team soon and I don’t want her muddying the water. I’m afraid if I tackle this, she will ‘go sick’. She has done this before. My team is under huge and growing pressure. A. It is so easy to feel undermined by one person, so pay close attention to where your energy goes. It’s essential to prioritise creating a positive experience for your new joiners as well as the rest of the team.  During interviews, induction and early reviews with your new team members, communicate this by organising a team lunch, bringing treats to meetings or refreshing the team meeting format. Also, take a look at the agenda: What is discussed? Who gets to talk, present, discuss or consult?  If you decide to deal directly with the issue, remember her behaviour has evolved for a reason and, in her head, makes perfect sense. Whether it’s discomfort, disrespect, payback or self-protection, there is a message in her behaviour. It could be interesting to find out why she seems disinterested in engaging with the team.  You need to be genuinely curious – this can be hard when you feel undermined and anxious. It’s possible the team member may need help getting back into the group. Consider pairing her up with someone on a project, asking her to train a new team member, or finding ways to acknowledge her long service and experience. If you decide to discuss this with her, start with the context (which you have outlined in your question): she is retiring soon, new people are starting and pressure is growing.  For those reasons, you need everyone to be fully present to onboard new joiners, deal with important issues and prepare for the future. This means putting the work away for a while.  You can be firm, gentle and respectful in this conversation. She may give you a range of reasons for her behaviour – for example, she’s too busy, the meeting takes too long, it’s not interesting, it doesn’t concern her or she knows all this stuff already.  Don’t argue with her. Agree and go back to your request: “I know you are busy but I need you there. So, how can we make it a more useful meeting?”   Be sure to have an exit strategy ready to avoid going round in circles.  The request you are making to this long-serving team member is reasonable. If you receive an outright refusal, the stakes get very high (and we are firmly in ‘going sick’ territory).  Consider your options: Do you stick with the status quo? Insist she engages with the team? Ask her not to attend team meetings if she can’t pay attention?   Telling her, “I’d rather have you there than not there, but I’d really appreciate it if you were fully present,” might be the safest option and keeps the door open. Julia Rowan is Principal Consultant with Performance Matters Ltd, a leadership and  team development consultancy. To send a question to Julia, email julia@performancematters.ie

The ethical use of AI and how it is governed today and as it continues to evolve in the years ahead is top of mind for many in the profession. Accountancy Ireland asks three Chartered Accountants for their take on the ethics of AI Owen Lewis  Head of AI and Management Consulting KPMG in Ireland It is crucial for all of us in the profession to ensure the integrity and transparency of solutions driven by artificial intelligence (AI).  We must audit and validate AI algorithms to ensure they comply with regulatory standards and ethical guidelines. Monitoring systems for biases and inaccuracies is also crucial to ensuring that financial data and decisions remain fair and reliable. By providing independent oversight, we can help to maintain trust in AI-driven financial processes and outcomes for clients.  Where AI is used to inform large-scale decisions, it should be supplemented with significant governance measures, such as explainability, transparency, human oversight, data quality and model robustness and performance requirements. This technology is continuing to advance rapidly, and we need to be open to both its current and potential capabilities.  By putting the correct governance mechanisms and controls in place – beginning with low-risk test applications and building from there – organisations can adopt AI safely and obtain real benefits from its use. I am working with organisations to help them think through what AI means for them, develop strategies for its adoption, put the necessary governance and controls in place, scale solutions sensibly and ensure business leaders get real value from their investment.  Whatever their goal may be – more efficient operations, accelerated content generation or improved engagement with stakeholders – we help organisations decide if AI can help, and if it can, how to use it in the right way. >Bob Semple Experienced Director Governance and Risk Management Artificial Intelligence (AI) is one of the most misunderstood, yet transformative, technologies impacting the way we work today. Here are 10 essential steps Chartered Accountants should take to navigate the landscape of AI effectively. Take a leadership role – If we don’t take the lead, we risk missing the golden opportunity AI presents. Conduct an AI “stocktake” –According to a recent Microsoft survey, 75 percent of employees are already using AI. Identifying current AI usage within your organisation is essential. Assess the downside risks of AI – Legislative and regulatory requirements are exploding (e.g. NIS 2, the AI Act, DORA and more) and risks abound (AI bias, explainability, privacy, IP, GDPR, cyber security, resilience, misuse, model drift and more). Organisations must act on their AI responsibilities. Conduct a dataset stocktake – Just as the Y2K challenge was about identifying IT systems, today’s challenge is to catalogue all datasets, as these are crucial for AI functionality. Draft appropriate policies and procedures – Establish clear responsibilities and accountability for AI initiatives. Pay special attention to how AI impacts decision-making processes. Strengthen data curation – Implement new processes to improve how data is collected and used. Identify opportunities for the smart use of AI – Brainstorm and prioritise AI use-cases that can drive efficiency and innovation. Provide training – Ensure that board members, management and staff are all adequately trained on AI principles and applications. Manage the realisation of benefits – Safeguard against excessive costs and subpar returns by carefully managing the implementation of AI projects. Update audit and assurance approaches – Seek independent assurance on AI applications and leverage AI to enhance risk, control and audit processes. As we adopt AI, it is critical that we pay particular attention to distorted agency – i.e. giving too much agency to, or relying unduly on, AI outputs and doubting our own agency to make the most important decisions. Exercising professional judgement is the key to minimising the risks associated with AI and realising its benefits, and that surely is the strength of every Chartered Accountant. *Note: GPT4 was used to assist in drafting this article.   Níall Fitzgerald Head of Ethics and Governance Chartered Accountants Ireland Artificial intelligence (AI) is proving to be transformative, impacting competitiveness and how business is done.  Chartered Accountants Ireland has engaged with members working in various finance and C-suite positions, including chief executives, chief financial officers and board members, to understand how AI is impacting their day-to-day work.  One thing is clear. AI is being used in some shape or form in many businesses across the country.  In 2023, the Institute’s response to the UK’s Financial Reporting Council proposals on introducing governance requirements for the use of AI noted several governance mechanisms that are likely to be impacted by AI currently or in the very near future in many organisations.  We highlighted the focus on corporate purpose and how market forces, emerging threats and opportunities driven by AI, may challenge the purpose of an organisation and its long-term objectives.  AI may impact how organisations decide on their strategic focus in terms of how they deliver their product or service and, indeed, how their product or service is designed in the first instance.  It may also impact these organisations’ values as they consider how to deploy and use AI in an ethical manner. The EU AI Act, which enters into force on 1 August 2024 over a phased basis, introduces requirements for the development of codes of conducts, risk and impact assessments and staff training to ensure adequate human oversight around the use of AI systems within organisations. This has specific resonance for Chartered Accountants who are members of a profession bound by a code of ethics governing objectivity, confidentiality, integrity, professional behaviour and competence and due care. Chartered Accountants must now ensure that they understand how AI uses, analyses and then outputs data.  Organisations must ensure that any AI-driven information they share, and how they deploy the technology itself, satisfies principles of integrity, honesty and transparency.  Chartered Accountants are well-positioned, with their ethical mindsets, to ensure the integrity of AI systems, and their use within organisations.