The achievements of the vibrant network of over 700 Chartered Accountants in the US continue to represent the best of the profession and provide a crucial conduit for inbound investment to our shores US members represent best of the profession  For decades, Ireland’s Chartered Accountants have beaten a well-worn path across the Atlantic, writes Sinead Donovan, President of Chartered Accountants Ireland. Facilitated by a Mutual Recognition Agreement with the American Institute of Certified Public Accountants (AICPA), our members have had the opportunity to build their careers in roles across industry and practice. Many make the move in the early years of their career, looking to explore the world and gain post-qualification experience in a new market. As you will see in this special report, many remain there through their careers, becoming embedded in the local economy, their achievements in senior positions representing the best of the Chartered qualification. These more established representatives of our profession become highly effective advocates across the United States, and indeed for the island of Ireland, as they become influential ambassadors for inbound investment to our shores. This flow of investment is well-established and mutually beneficial for our economies, and I am proud of the critical role our members play in driving and servicing this. As a membership organisation, one of the most critical things we can do is support members in this work. In what I like to call the “family” of accountants, I have come to realise that no matter how far from home members are located, there is that strong desire for community and a sense of belonging with their fellow members overseas and with the Institute at home. On the ground in the US, there is also a strong network of overseas chapters, run so effectively by local volunteer members, many of whom I had the pleasure of meeting last year when I visited. The other crucial way we support members is through the power of our professional network. Over the years, we have built strong and enduring relationships with AICPA, the National Association of State Boards of Accountancy and Chartered Accountants Worldwide, among many others. This collective voice is invaluable in continuing to help our profession to grow and further develop meaningful economic and societal impact.  Colm Mackin, Act+Acre As co-founder and Chief Executive of Act+Acre, the New York headquartered haircare business he runs with his wife and business partner Helen Reavey, Colm Mackin has just launched the brand in 235 US outlets of Sephora, the cosmetics retail giant. It is a major milestone for Mackin, a Chartered Accountant from Co. Down, and Reavey, a top hairstylist from Armagh, who launched the brand together in 2019. They partnered with scientists at Stanford University to develop a range of patented cold-processed haircare products designed to resolve scalp-related issues ranging from product build-up to thinning hair. Since then, Mackin and Reavey have employed a successful e-commerce strategy that has seen Act+Acre grow from strength to strength, netting the venture US$12 million in private investment. “That first spark of an idea came from Helen’s experience working at Paris Fashion Week with all these models who were going from show to show,” Mackin explains.  “They had nothing to remove scalp build-up and their hair wasn’t performing. We saw this gap in the market for a range of products that could address these issues and promote scalp health as the basis for healthy hair.” At the time, Mackin had transferred from PwC in Dublin to work on the international tax team at the firm’s New York office. His decision to leave a secure role in practice for the unfamiliar world of entrepreneurship was bolstered by his pure belief in the Act+Acre concept. “What I had been doing in practice gave me a really good grounding for what we’ve gone on to achieve with Act+Acre, but there are different chapters to the story,” he says. “We spent six months researching our products and the cold-processed process behind them. Then, you must get the product/market fit right, build your team and raise the money you need. “I think that’s where I’ve really seen the benefits of my qualification coming through. America is a place where you have access to investors you wouldn’t necessarily find in smaller markets and being Irish helps because we’re naturally good storytellers and we are naturally passionate.  “That helps to get the conversation started, but being a Chartered Accountant also means I have a very good understanding of profit and loss on a balance sheet. I can speak with confidence to investors; it’s just innate. I can answer their questions. You’re speaking to them on their level and that helps hugely when you’re out there raising money to build your own business.” US market appeal Mackin is one of over 700 members of Chartered Accountants Ireland currently living and working in the US.  More than one-in-three are in the 24-44 age bracket, demonstrating the market’s ongoing appeal to, and demand for, talented Chartered Accountants from Ireland building their careers.  While concentrated in cities such as New York, Boston, Chicago, San Francisco and LA, their footprint can be found right across the country, from Washington State to Florida and from Texas to Michigan.  Eighty-two percent of Institute members in the US work in business. The second largest cohort (10%) work in practice.   Una Troy, SS&C Technologies One of the 82 percent of Institute members in the US working in business is Una Troy. Troy is a Managing Director with SS&C Technologies, a provider of services and software to the financial services and healthcare industries with some 20,000 clients and offices around the world. Based in New Jersey, Troy qualified as a Chartered Accountant in Dublin and had already worked in high-level positions in the funds industry in the UK and Australia by the time she found herself en route to the US in 2005. “I was working with BISYS Fund Services in Dublin in 2005 when the company started hiring people to support its growing hedge fund business in the US and I decided to make the move across to New Jersey,” she says. Almost immediately, Troy found her qualification as a Chartered Accountant beneficial to her career progression in the States. “At the time, BISYS had acquired the hedge fund administration arm of an accountancy practice and I was able to help that business integrate into BISYS,” she says. “My accountancy background gave the local leadership team confidence in me and the group I was leading and, when BISYS was sold to Citi, I became Global Head of Operations for Citi’s hedge fund business.” Troy was subsequently appointed Managing Director, SS&C GlobeOp, following SS&C Technologies’ acquisition of Citi’s Alternative Investor Services Business. “I have found the US very welcoming as a place to live and work. There are a lot of commonalities culturally between Ireland and the US; both share a very strong work ethic. There are great career opportunities here and your efforts are rewarded.” Troy’s advice to Chartered Accountants who have relocated to the US more recently is to make full use of the professional network facilitated on-the-ground by Chartered Accountants Ireland. “You’ll start to form a network of colleagues within your work role, but it’s also important to broaden your contacts outside that,” she says. “Attend events hosted by Chartered Accountants Ireland and other organisations relevant to your work. Once you start to attend these events, you automatically start to broaden your network.” The Chartered Accountancy qualification is relatively well-recognised in the US and associated with high professional standards, Troy says, but certain roles may require applicants to hold a Certified Public Accountant (CPA) designation.  “For many Irish Chartered Accountants, the qualification itself will suffice but where a CPA designation is required, an accelerated path has been facilitated by the American Institute of Certified Public Accountants (AICPA) and the National Association of the State Boards of Accountancy (NASBA) through a Mutual Recognition Agreement (MRA) with Chartered Accountants Ireland,” she says. About the MRA Chartered Accountants Ireland first signed its MRA with the AICPA and NASBA in 2004 and the agreement has since been renewed several times.  “Irish Chartered Accountants can access the US designation and gain practice rights in the US,” explains Ian Browne, Director of Education, Chartered Accountants Ireland. “This is of particular relevance to those who wish to work in practice in the US and is increasingly required by US firms.” To successfully complete the process, Chartered Accountants are required to pass the International Qualification Exam (IQEX) operated by NASBA. This can be done in Ireland before moving to the US. “Additionally, as the US CPA qualification includes audit rights, you should ideally have obtained the Irish Audit Qualification before you leave should you plan to work in audit,” Browne says. Ken L. Bishop, President and CEO of NASBA, says the MRA gives Irish Chartered Accountants a relatively easy route to securing the necessary certification to work in the US. “Irish Chartered Accountants are typically highly valued by the US profession and many have taken advantage of the MRA,” Bishop says. “I believe that the MRA and the flexibility and mobility of practice privileges that can be accomplished is hugely important. We live in an increasingly global economy, and the business and economic nexus between the US and Ireland continues to increase.” Alan T. Ennis, former Revlon CEO For Alan T. Ennis, who has lived and worked in the US since 1999, his qualification as a Chartered Accountant provided the crucial foundation on which he has been able to build a high-flying career in business. Ennis studied commerce at University College Dublin and qualified in 1991 with Arthur Andersen, where he continued to work as a manager for a few years before moving to the UK to join Ingersoll Rand in Manchester. It wasn’t until he negotiated a transfer to the US multinational’s New Jersey office in 1999, however, that his career really began to take off. “I moved through various different financial roles from internal audit to financial planning and investor relations there,” he says. In 2004, as he was considering a potential move to North Dakota to take up a position as CFO of Ingersoll Rand’s Bobcat division, Ennis was headhunted for a very different role. “I was offered the position of head of internal audit at Revlon. I was in my early thirties and my choice was between Bobcat in Fargo, North Dakota, and this other role with a very different and much smaller company that would put me in New York.  “Revlon had a lot of debt at the time. It was a high-risk move, but I thought, ‘you know what, I’m going to go for it’.” It was a risk that would pay off for Ennis who quickly climbed the ladder at Revlon. “Being a Chartered Accountant put me in a very good place to understand the financial operations of any corporation and that really stood me in good stead at Revlon,” he says.  “I could understand financial statements, I understood the importance of profitability and cash and how investments work.  “What happened next was really a combination of readiness and serendipity. Within two-and-half years, I had gone from Head of Internal Audit to Corporate Controller to President of International and then Chief Financial Officer.” As CFO, Ennis again found his training as a Chartered Accountant invaluable. “The Board of Directors could see that I knew how the business worked; how it operated.” After two-and-a-half years as Revlon’s CFO, Ennis was appointed to the top role of Chief Executive of Revlon for five years. “I had a great run and a superb team of people behind me and when I left that role in 2014, I got a great package and I wasn’t under pressure anymore really to prove myself. I had choices,” he says. In the years since, Ennis has “dabbled in private equity and joined a couple of boards, both profit and not-for-profit.”  “In everything I’ve done here in the US, my qualification continues to be the most valuable jewel in my chest of knowledge,” he says. “My advice to Chartered Accountants moving from Ireland to the States now is to make sure you start to connect with other Chartered Accountants over here straight away – and there are lots of us in New York, Boston, San Francisco and other places. That’s a valuable network. “The other piece of advice I would have is that it’s okay to put yourself out there – in fact, it’s a good idea. Americans tend to be confident in how they present themselves professionally. They are proud of what they have done and they’re confident in their success and in abilities.  “They’re not afraid to talk about it. Irish people, myself included at times, tend to downplay our achievements and abilities. In the US, people won’t necessarily understand that so it’s not a bad idea to learn to advocate for yourself, your skills and talents.” Significant contribution to New York business community Irish Chartered Accountants make a significant contribution to the New York business community, writes Helena Nolan, Consul General of Ireland in New York. Its active members are a testament to the wide reach of Irish and Irish American accounting professionals in the broader New York business and finance sectors. It was a pleasure to host Chartered Accountants Ireland again for another networking event at the Consulate in New York during St. Patrick’s week in 2023 and an honour to have Irish Minister for Education, Norma Foley TD, present to address the gathering of members and partner organisations. Networking events like these are important for showcasing members’ contribution, for raising awareness of the increasing opportunities available now for businesses in Ireland and to help underpin the vibrant professional relationships between professional organisations and individuals in the United States and Ireland. The Consulate team is always pleased to support and reinforce these strategic linkages between our two countries and our two economies, where we see an increasingly mutual relationship, in terms of trade and investment, and great potential for the future. Chartered Accountants play important role in winning FDI for Ireland    Ireland’s investment relationship with the US is strong and enduring with about half of all IDA Ireland clients headquartered in the US, writes Brian Conroy, Executive Vice President and Director, North America, IDA Ireland. These US companies employ more than 180,000 people in Ireland across a range of sectors such as technology, life sciences, financial services and engineering. US investments in Ireland are by no means gained effortlessly. With over 30,000 members, Chartered Accountants Ireland plays a very important role in the winning of FDI for Ireland. The Institute’s members work in senior positions in practice and industry both in Ireland and in the US and provide the financial leadership and talent crucial to Ireland’s success. A key reason our country is an attractive place for US companies to do business is because people here in government, industry and academia work hard to make it that way. The activities of US multinational companies supported by IDA Ireland make a crucial contribution to our FDI success. US members: key decision-makers driving NI inward investment Alongside our wider diaspora network, professional membership bodies like Chartered Accountants Ireland play a significant role in bringing people together, writes Andrea Haughian, Executive Vice President and Head of Americas with Invest Northern Ireland.  Organisations like Chartered Accountants Ireland afford agencies such as Invest Northern Ireland the opportunity to engage with members across the US, many of whom are, or can facilitate access to, key decision-makers responsible for investment decisions. We deeply value the relationships facilitated by Chartered Accountants Ireland. For more than 20 years, Invest Northern Ireland has supported US companies to successfully establish centres of excellence in Northern Ireland.  Northern Ireland’s global reputation as a trusted business partner with a thriving entrepreneurial ecosystem, talented workforce and deep expertise in research and innovation, has long been a magnet for significant foreign direct investment from the US. Companies such as Seagate, Citi, Aflac, and Microsoft have joined more than 230 US-owned businesses operating across the region and employing over 30,000 people in sectors as diverse as technology, advanced manufacturing and engineering, life and health sciences and financial and professional services.  Demonstrating the importance of the relationship between the US and Northern Ireland, US President Joe Biden has appointed Joe Kennedy III as the US Special Envoy to Northern Ireland for Economic Affairs with a focus on advancing economic development and investment opportunities. 

The CSRD requires business leaders with ESG expertise, strategic vision and ethical leadership who can drive lasting organisational change, writes Michele Stokes With the advent of the Corporate Sustainability Reporting Directive (CSRD), large and listed EU-based firms will be required to collect and provide dependable and standardised sustainability data. This will give stakeholders the opportunity to assess the non-financial performance of companies and evaluate the organisation’s impact on people and the environment. So how will this change the way leaders are recruited? C-suite executives who understand the importance of sustainable and socially responsible business practices are preparing for the CSRD by formulating environmental, social and governance (ESG) strategies that align with their organisation’s goals. Executives will need to possess technical knowledge, strategic thinking and a deep understanding of sustainability principles. They will also require considerable organisational change skills. The future of work Leaders will need to be adept at navigating this transition and engaging with investors, clients, employees and regulators. The collection and handling of CSRD data presents huge technical and organisational challenges. Several companies in industries such as oil and gas, food and beverage, manufacturing, and consumer goods are already using ESG reporting and data management software from IT providers. Process effectiveness will sit across many functions including risk, finance, HR, legal, technology, procurement, supply chain and sustainability. The latter is expected to grow in importance quite substantially. Leading effectively We outline below eight competencies that are essential to lead effectively in the area of sustainability: 1. Sustainability expertise – A strong grasp of ESG sustainability concepts and how these relate to an organisation’s operations and business strategy. 2. Technical expertise – Knowledge of best practice for data management and solutions that enhance firms’ ESG performance. 3. Regulatory knowledge – The ability to interpret and implement mandatory and voluntary reporting regulations effectively. 4. Strategic vision – The integration of sustainability goals with corporate strategy, embedding sustainability objectives in the organisation’s long-term vision. 5. Risk management – The identification and mitigation of ESG risks in compliance with sustainability reporting directives. 6. Ethical leadership – Authenticity and ability to inspire and lead cross-functional teams dedicated to sustainability initiatives. 7. Monitoring and reporting performance – Tracking sustainability initiatives through KPIs and incorporating sustainability data within management reports. 8. Financial acumen – Understanding the financial implications of sustainability initiatives and making sound financial decisions related to sustainability investments. How to recruit for sustainability According to KPMG, 43 percent of CEOs in Ireland view the greatest challenge in their ESG strategy as attracting new talent. The challenge for executive search firms and HR leaders will be in selecting C-suite executives aligned to their organisation’s commitment to sustainability. The recruitment process should be rigorous, comprehensive and include each of the following stages: 1. Define role and responsibilities: Responsibilities should include developing and implementing sustainability strategies, assessing risk, ensuring compliance with relevant standards, reporting on corporate social responsibility (CSR) performance, evaluating technology and engaging with stakeholders. 2. Identify key qualifications and skills: Seek candidates with a strong background in sustainability, ESG practices and driving CSR initiatives. They should demonstrate experience in using technology to drive these initiatives efficiently. 3. Prepare a detailed briefing document: Highlight the company's dedication to CSR in the briefing document and throughout the assessment process. 4. Conduct comprehensive competency-based interviews: Assess candidate knowledge of CSR, values and ability to drive sustainable practices. Seek evidence of implementing CSR programmes and their outcomes and ascertain their approach to stakeholder engagement. 5. Evaluate cultural alignment and leadership proficiency: Evaluate the candidate's leadership style for alignment with company culture. Executives should possess the ability to motivate and guide teams towards enduring CSRD objectives. 6. Plan onboarding and integration: Formulate an onboarding strategy that encompasses an introduction to the company's CSR initiatives and organise introductions to key stakeholders. Role specifications will vary depending on the size, scale and complexity of an organisation. However, a commitment to sustainability and a willingness to adapt are essential for C-suite leaders to effectively navigate compliance with the CSRD and broader sustainability initiatives. Michele Stokes, is Director and Head of Research at HRM Search Partners

The explosive growth of AI has transformative potential but also raises critical privacy concerns that must be addressed, writes Pat Moran The world of artificial intelligence (AI) took a massive leap forward with the emergence of ChatGPT in November 2022. Since then, there has been a surge in the design and implementation of AI use cases across industries such as healthcare, retail, financial services, manufacturing and others. While the emergence of AI is transformative, this powerful tool is not without its challenges, particularly the profound privacy concerns it raises. As organisations eagerly harness the potential of AI, it is vital to know the associated privacy risks, such as: Data collection and breaches – As AI models evolve, their training datasets will likely grow, increasing the risk of personal and special category data being included. These datasets must be stored and processed securely while training AI systems. Algorithmic bias and discrimination – Biased algorithms may inadvertently perpetuate biases and lead to decisions that could negatively impact certain groups of people without the organisation’s intention to discriminate. Data subject requests – Once the AI systems are trained and deployed, responding to certain data subject requests becomes increasingly difficult. Transparency – As AI systems become commonplace in organisations, users will increasingly unknowingly interact with these systems, including instances where users are affected by automated decision-making. Regulatory requirements and industry standards – Even though AI is considered a novel technology, there are existing and upcoming regulations and standards that define and guide its usage. Organisations must demonstrate compliance with these regulations and standards to maintain customer trust and meet procurement standards in the market. Misuse of personal data in AI-enabled cyberattacks – Malicious actors have begun leveraging personal data such as audio clips and deep-fake content for advanced phishing attempts and other scams. Inaccurate responses – It is common for generative AI programs to respond based on probabilities identified within the data sets used to train the AI instead of actual, accurate data points. This can result in inaccurate responses and may cause issues if users do not verify the authenticity of the system’s responses. Organisational changes for AI To successfully traverse the concerns listed above while developing and integrating AI systems, organisations should consider the following best practices: AI governance: The teams involved in developing AI governance should be interdisciplinary, including teams in AI development, legal, privacy, information security, customer success and others. Privacy by design: The foundation of responsible AI lies in the concept of ‘privacy by design’, which states that data protection and privacy considerations must be implemented throughout the development lifecycle for any AI system. This includes incorporating privacy-enhancing technologies, ensuring appropriate security, compliance with regulatory requirements and other privacy-specific principles. Some AI systems have a ‘black box’-like nature, which makes it harder to detect and fix ethical, privacy and regulatory issues once deployed, increasing the need for privacy by design. Further, there might be other processes that pose too high a risk to move towards automation through AI and will require controls such as “a human in the loop”. Transparency: Users must be provided with clear and transparent communication in the form of privacy notices and other means including: confirmation that AI systems are used to process their data (including details of automated decision-making, if present); how their data is collected and processed; how long it will be stored; an outline of their rights, etc. The information helps users provide informed consent and builds trust in AI systems as well as the organisation. Fairness: An important step is to perform regular audits of AI systems to test their performance and ensure no bias or discrimination against users. The review should include the automated decision-making algorithm, and the process by which the algorithm makes decisions should be transparent and explainable. Data management: Ensure data ingested by the AI system during training is lawfully obtained, high-quality, and rigorous vetting and anonymisation have been performed. Technologies such as pseudonymisation or data aggregation should be implemented to ensure compliance with data minimisation and retention privacy principles. Up-to-date records of processing activities should also be maintained to ensure data is managed effectively throughout its lifecycle. Remember, organisations cannot use publicly available data to train AI systems without a valid lawful basis. Risk management, compliance and information security: A risk-based approach, including a data protection impact assessment, should be implemented to assess the level of risk involved before AI systems are deployed. The organisation should also sign off on the risk levels, controls and mitigations. AI compliance monitoring should be incorporated into the organisational, regulatory compliance programme or privacy programme. The wider organisational information security programme should include AI systems and their underlying data to prevent data breaches and malicious attacks. Technical and organisational measures such as encryption, data masking, password management, access controls and network security should be implemented. Employee training: As AI is a new technology, employees must be trained periodically on responsible AI usage. Training should include the privacy impact of AI systems, compliance with data protection regulations while using AI, misuse of personal data in AI-enabled cyberattacks and how to guard against it, and data protection best practices. Conclusion The advent of AI may be compared to the invention of the combustion engine. While organisations can move faster, they will also require stronger brakes. These brakes may address these multifaceted concerns, which necessitates a holistic approach, combining technological innovation, ethical practices, user empowerment and regulatory adherence. Organisations’ responsibility will be to innovate and ensure that innovation aligns with the values of privacy, ethics and user trust. Pat Moran is the Leader of Cybersecurity Practice at PwC.

The end of January sees several customs changes that will have a significant impact on Irish exporters to the UK. Brian McNamara discusses what you need to know to avoid delays and charges After several delays, HMRC will finally introduce full UK import checks on goods coming from the island of Ireland. On the same day, the UK Department for Environment, Food & Rural Affairs (DEFRA) import controls will also begin for certain food and plant products coming from the European Union. Below are three important points businesses moving goods to the UK should be aware of in relation to these changes: 1. UK import declaration and goods movement reference The biggest change from 31 January is that UK customs filings must be done prior to departure of the goods. Up to this point, there has been an easement in place allowing the import declaration to be carried out after the event. From Wednesday next, if the UK import declaration has not been submitted, the goods simply won’t get on the ferry in Dublin or Rosslare. Further, truck drivers will need to scan a goods movement reference (GMR) document when checking in with the ferry company. The import declarations for all goods on the truck need to go into the GMR. Exporters should talk to all parties in their supply chain (freight companies, clearance agents and UK suppliers) and get comfort that all necessary documents will be in place to ensure their goods keep moving. 2. DEFRA controls The 31 January also sees the introduction of health controls on the import of certain foods of animal origin (FOAO), plants and plant products from the EU. While the EU insisted on such checks on UK imports straight away on 1 January 2021, the UK government elected to delay the introduction of a similar regime. These DEFRA import requirements include the advance notification of the consignment on the UK’s IPAFFS system, and the submission of an export health certificate for certain goods. DEFRA has classified all FOAO, plants and plant products as either low, medium or high risk. The exact requirements each category of goods is subject to will depend on their risk classification. Exporters in the agri-food and plant industries should get a clear picture of the risk category of their goods and ensure all necessary steps are taken. As with the general UK import controls, if the correct submissions are not made, the goods won’t move. 3. Repairs/goods moving for processing Ireland is a smaller market than the UK. In some industries there isn’t the same level of capability locally, so it’s not unusual for goods to go to the UK for repair or further processing. A common misconception concerning customs is that, if goods are not being bought/sold, people think there is no import duty due on them – machinery moving to the UK temporarily for repair, for example. This is not the case, however. Once goods cross a customs frontier, an import declaration is required, and the goods are potentially liable to import duty. It is possible to gain relief from import duties on goods entering the UK temporarily by using Customs Special Procedures such as Inward Processing or Temporary Admission. However, businesses should be aware that it can take time to properly put these procedures in place. Taking short cuts could lead to the goods getting stuck and/or incurring import duty and VAT. So to an extent, the full impact of Brexit will only now be felt by Irish companies moving goods to the UK. To stay on top of this, businesses should make sure that all the correct documents are in place to keep their goods moving, minimise import duty and stay customs compliant. Brian McNamara is MD at SwiftFile Customs.

In the complex landscape of corporate decision-making, understanding the differences between ESG and sustainability is crucial, writes Dan Byrne Corporate decision-making today involves a lot of talk about the environment, social and governance (ESG) and sustainability – precisely, how your company will fit into both movements. No one wants to discover they don’t know the difference between the two in the middle of a board meeting. While the two ideas share a lot of overlapping principles, they are different. It is essential to understand these difference because, once you sit down with colleagues to oversee core strategic decisions, you must have robust knowledge about the relevant topics. The difference between ESG and sustainability Sustainability is a principle dictating that, while we must look after the needs of our current society, it cannot be to the detriment of future generations. The concept of sustainability is so broad that it inevitably means different things in different boardrooms. The common thread in most organisations is that sustainability principles guide stakeholder expectations and, as a result, company strategy. ESG isn’t a principle; it’s a framework for measuring specific impacts and risks. It is a tool that can help investors and stakeholders to understand where their money is going. Why the confusion? There is a lot of overlap between ESG and sustainability, so organisations often file them under the same heading. In practice, companies embracing ESG will often commit to not harming the planet (environment), its people (social) or themselves (governance). While this should always be approached with the understanding that ESG is an investment metric and tool for analysing risk, it can be easy to generalise to the point that ESG is instead viewed as a sustainability metric or simply another name for sustainability itself. This is particularly true when companies focus on the “E” part of ESG. It’s popular across multiple industries and wins the backing of key stakeholder groups. An organisation’s focus on the environment creates a natural overlap with sustainability activities. Avoiding confusion in the future If you are in a board meeting and find yourself hovering around both topics, be sure not to hint that they’re the same with these tips: Remember that ESG is a collection of metrics; sustainability is a principle; If you’re talking about ESG, you will likely end up talking about numbers, quantities, reporting and investment opportunities. If you’re talking about sustainability, it’s expected more in the context of organisational goals, culture and policies; and Sustainability, in many respects, is the end goal. ESG is a pathway and a framework that will allow you to get there. Dan Byrne is a writer with the Corporate Governance Institute

As artificial intelligence and hybrid working reshape roles, accountants must begin to embrace IT, analytics and real-time data. Mark Lam explains why Bean counters, excel spreadsheets, sums and calculators – just some of the stereotypes and imagery that are associated with accountants. In 1955, General Electric began to use computers to perform accounting functions, and in 1978, VisiCalc, the first spreadsheet software allowing financial modelling, was developed. Since then, technology has continued to evolve and become more complex and central to the role of the accountant. A worker is only as good as the tools they are given to complete the tasks at hand and accountants are no different. Spreadsheet software itself revolutionised the profession, turning a “20-hour per week bookkeeping chore into a few minutes of data entry”. We have been seeing a more recent new shift in the profession in the past decade and this has been exacerbated in the years since the COVID-19 pandemic with the rise of hybrid working and artificial intelligence (AI). Technology has clearly advanced since the introduction of that first spreadsheet, with developments in computer systems and software connecting each function of the business to a single Enterprise Resource Planning (ERP) system. Just like in the 1970s, accountants are going to need more IT skills in order to stay competitive in the current market. New roles for accountants have emerged, such as the project accountant, financial system accountant, system accountant or data accountant. All are technically the same role, requiring high levels of IT systems and process knowledge­ and functioning as the intermediary between the IT and financial functions of businesses.   Future skill requirements As digital transformation is becoming more of a hot topic, companies are seeking continued improvements in efficiency combined with the need for real-time data causing businesses to increase data collection and connectivity between business processes. ERP systems providing the solutions to these needs offer just one part of the answer. Business leaders increasingly want accurate real-time data and information to aid decision-making. Accountants are required, not only to understand how the systems work, but also produce meaningful reports for bosses. Employees who understand how these systems work can build processes around them and extract and present the relevant information to help management leverage ERP systems to best effect. To stay ahead of the curve, businesses need to consider the future skill requirements of their financial teams, just as accountancy bodies will have to consider the curriculum provided to trainees to meet those needs. Businesses that take on trainees may start to consider taking on those who come from an IT background instead of accountancy, for example. Accountancy firms should be able to train accountants but can’t train computer programmers, after all. It may be more important to have new skills at the organisation’s disposal rather than more traditional accountancy functions. Accountants have always been more than just bean counters, but now this stereotype is becoming a distant memory. Mark Lam is H&W Group Financial Reporting Manager at Vhi and Chartered Accountants Ireland Technology Committee Member The Chartered Accountants Ireland Technology Conference will aim to inform members about this change, to allow us to bravely step into the world of digital transformation having learned from our peers and industry experts. Industry leaders such as Microsoft and Sage will present on the best practice around digital transformation at the conference and there will be case studies from fellow accountants detailing their digital transformation journey and lessons learned. Sign up now.

Real-Time PAYE has supported five years of streamlined tax compliance, but employers face expanding reporting demands in 2024. Olive O’Donoghue outlines key deadlines and requirements in 2024 Real-Time PAYE has been up and running for five years and many will agree that the real-time system has introduced tax compliance efficiencies for employers and employees alike. Employers still have significant reporting obligations that fall outside of the Real-Time PAYE, however. Further, the scope of real-time reporting is expanding with the introduction of Enhanced Reporting Requirements and there is an obligation for employers to operate PAYE on the exercise of stock options from the start of 2024. Below we outline key reporting deadlines and obligations employers need to put in this year’s calendar for timely action. 2023 Employer SARP return – February 2024 The deadline for employers to file a 2023 Employer SARP return is 23 February. The Special Assignee Relief Programme (SARP) provides personal income tax savings of up to 12 percent for employees who relocate to Ireland and meet certain conditions for up to five years. The return covers both local employees and expats and requires details of earnings and the value of the SARP deduction provided through payroll per employee. It also requires details of tax-free items, such as flights or school fees, which may not be readily available in the payroll data. Employers should factor in the time it takes to collate off-payroll information and information on employees who have relocated to other jurisdictions. It is essential to have a solid process for the timely collection of accurate information to avoid or minimise follow-up queries from Revenue. 2023 Employer Share Award Returns – March 2024 Employers are obligated to report details relating to various forms of share-based remuneration provided to employees in 2023 by 31 March this year. This includes all Revenue-approved schemes but also unapproved stock options, restricted stock units and various other direct share awards. Several different returns exist, so it is important for employers to report the right details on the right return. All matters relating to unapproved share options are reported in Form RSS1. However, the return with the widest application for employers is the Employer Share Award (ESA) return. The ESA is a catch-all return and covers all forms of share-based remuneration, including awards that are cash-settled and not specifically reportable on other share returns. Specific returns then exist for KEEP, an Approved Profit Share Scheme (APSS), and a save-as-you-earn (SAYE) scheme. Failure to comply with this mandatory filing obligation can result in a financial penalty for employers, so a timely review of share plans and cash-based incentive arrangements is crucial to determine if the employer has a reporting obligation. Enhanced Employer Reporting from 1 January 2024 2024 heralds the rollout of the Enhanced Reporting Requirements (ERR) which places an obligation on employers to file an additional electronic return with Revenue on or before any payment or reimbursement of in-scope reportable benefits to an employee. Reportable benefits include the remote working daily allowance of €3.20, certain categories of travel and subsistence payments, including vouched and unvouched payments, and benefits covered by the small benefits exemption. ERR will enable Revenue to undertake more targeted PAYE reviews into certain expenses and benefits provided to employees. Revenue has stated that it will not operate a compliance program or apply penalties for non-compliance with ERR until 30 June 2024. While employers must comply with ERR from 1 January 2024, they should use the respite period to the end of June to continue to review and align expense systems to establish a robust process for managing ERR. PAYE on stock options from 1 January 2024 Another significant change from the start of this year is the introduction of the requirement to operate PAYE when an employee exercises a stock option. This represents a significant shift from the previous tax collection system whereby income tax, USC and PRSI payable on stock options were settled by the employee directly with Revenue within 30 days of exercise. While the move to PAYE on the exercise of stock options will be welcomed by employees as it removes their obligation to settle their taxes, significant challenges may arise for employers who will be required to gather the necessary data to report the stock option gains via the payroll on a real-time basis. PAYE must be operated even where an option is exercised by a former employee, for example. This can give rise to practical challenges related to timing and the ability of the employer to collect taxes from the individual. Employers may also face challenges operating PAYE on stock options exercised by cross-border employees who worked in different countries throughout the vesting period. Employers will need to have access to accurate travel data to enable them to correctly determine the portion of any option gain that is taxable in Ireland. Olive O’Donoghue is a Tax Partner with KPMG’s People Services tax practice 

Do boards truly understand the risks and opportunities AI presents? Ryan McCarthy explains why many are ill-prepared for this game-changing technology There can be no doubt that the era of artificial intelligence (AI) has arrived. Barely more than a year since ChatGPT landed with a bang, investment has poured into the sector. Google has launched its Gemini system and Elon Musk’s X has introduced Grok, an AI modelled on the Hitchhiker’s Guide to the Galaxy. Spurred by the proliferation of AI tools in the EU, the European Council and Parliament have reached provisional agreement on the world’s first comprehensive AI law. Given all this, you might expect that AI must surely be on the agenda at every board meeting. This is not quite the case, however. We’re not yet seeing AI discussed around boardroom tables in any meaningful way. When it is discussed, it is generally with very little depth. This needs to change. Every board member must take it upon themselves to understand the issues and implications of AI now and in the future – don’t leave it to someone else. Threat and opportunity On the occasions AI does come up at board meetings, the discussion invariably turns to the emerging threat or risks it may pose. What hasn’t been discussed yet are the business opportunities it may also present. AI tends to be viewed as an external factor that could affect an organisation rather than an operational item to be examined from the inside. Thematically, we are seeing continued focus on AI as a broad, external and conceptual threat. Board room discussion remains very much at the surface level. Risk: rules vs principles Boards have become focused on risk primarily from a corporate governance, rather than a practical, point of view. The risk section in a typical annual report is getting thicker and thicker – not without reason, but it can contain a lot of ‘cookie-cutter’ risks: cyber-attacks, supply chain challenges and climate change, for example – and now, AI. There has been a steady drift over time towards rules rather than principles. People ask whether the risk is written down and documented, as opposed to asking, ‘What’s really going to sink the ship?’ You rarely find a strong example of a business identifying a risk that is clearly explained alongside an outline of how it has been contained or overcome. Advising the experts So, if boardroom discussions about AI are still only skin-deep, what will move it onto the business agenda? You have to look at modern governance structure, which involves companies drawing on specialists in areas including audit, risk, nomination/remuneration matters and, more recently, sustainability. Some companies, particularly in the US, have created the dedicated role of Chief AI Officer. There may be a gap for a technology or ‘emerging tech’ committee at board level. There are already requirements regarding the correct number of financial experts needed on a board. Should every board now also have technology experts? Diversity behind the boardroom door This leads to a broader point: given the close correlation between youth and emerging technology, does the typical top-level boardroom have the right demographic to deal with AI? We have come a long way in terms of boardroom diversity, but there is another layer to diversity that is exposed here: do we have young people?  Do boards have people from different educational and skill backgrounds, particularly when it comes to technology and innovation? I would say that many don’t. Outside the boardroom, a company’s executive – including the HR function – should also be getting to grips with AI. If something like the AI opportunity is not coming up through the organisation to the board level, then you’ve probably got to ask whether you have an executive that is tuned in. In the same way you need day-to-day skills to fully embrace environmental, social and governance requirements, do you have the right skills for AI? The workforce question What I haven’t yet discussed with any client is the opportunity AI could potentially present for the workforce. Part of the reason is that we haven’t yet fully figured out use cases. It looks as if these use cases will become more apparent in 2024 and beyond. One Dublin hospital has begun using AI to assess radiology scans, for example, while the National Weather Service has an academic collaboration in place to explore the use of AI and data science in weather and climate services.  The medical profession is producing more and more diagnostic information yet there is a worldwide shortage of people to review it. Could AI provide a possible solution? Companies with large customer service operations have been through the cycle of using onshore customer service teams to moving some elements offshore and then introducing bots or some combination of all three. Could AI provide a better option? Curiosity is key I expect AI to feature more prominently in boardroom discussions in the future. The best board members – and by extension, the best boards – have an innate curiosity. Right now, there are two things in the world we should be curious about now: one is geopolitics, and the other is technology – more specifically, AI. If you sit on a board and you’re not curious about these two things and their potential impact on your business, you may be in trouble. Ryan McCarthy is Audit Partner and Board Leadership Centre Lead at KPMG

As finance leaders grapple with the Corporate Sustainability Reporting Directive and its complex demands, IT collaboration will become increasingly important, writes David Codd Finance Directors and Financial Controllers are working hard to understand the implications of the Corporate Sustainability Reporting Directive (CSRD) and to put the necessary reporting in place in their businesses. But their colleagues in IT also have a vital part to play. This is an unusual challenge for IT, and it’s important to consider how to collaborate effectively. What are the pitfalls to avoid? And how can you build a strong partnership to deliver your sustainability reporting programme? The CSRD, finance teams and IT The CSRD will expand sustainability reporting which will become mandatory for publicly listed companies (plcs) in 2025 for 2024 performance and a year later for all large companies. Finance teams are now performing double materiality assessments and assessing what new measures and information will be required. However, the underlying data itself must be identified and sourced, its reliability established, and processes put in place to extract and interpret the data and report accurately on an ongoing basis. This has the potential to become very onerous. IT support will be critical to an effective and efficient process, i.e. high-quality reporting with minimum manual intervention. An unusual IT challenge This is an unusual challenge for IT departments for various reasons: The scope is exceptionally broad The activities that impact the environment are conducted across an organisation’s operations and – for Scope 3 emissions – through multiple steps in the supply chain. So, the systems and datasets your IT colleagues will have to work with are unusually disparate and will even fall outside the boundaries of the technology estate they control. The standards are still being rolled out IT project managers like clear definitions at the start of a project. However, the first sustainability reporting standards have only recently been released, and the taxonomy for digital reporting is a work in progress. Plus, the “limited assurance” concept will give rise to different interpretations of the quality of the audit trail needed. This is a big project without a conventional monetary business case Chief Information Officers usually have many more attractive-sounding initiatives in the pipeline than they can deliver at once. So, they work with their finance and functional colleagues to prioritise, and resources are allocated based on financial payback or loss avoidance. Your CSRD-driven reporting programme does not neatly fit these criteria.      How to manage risks There are several risks when working with an IT team on sustainability reporting. Confused responsibilities You usually work with a financial systems team, but IT business partners for supply chain or manufacturing operations will already have been partnering with sustainability managers to develop scorecards. Muddled ownership and communications can result in lost time. In a large business, reporting is a full-blown programme consisting of several streams. It needs experienced management to coordinate it and manage the relationship with you. I would also recommend that accountability for IT delivery sits with the head of financial systems, and the IT project manager should sit on the team. This keeps the ownership and lines of communication as simple as possible. Your IT team can’t resource the project Since the 2000s, IT resource has shifted from enterprise systems to ecommerce, data analytics and security. Enterprise resource planning systems teams have been staffed to make incremental changes on the basis that resources can be contracted in as needed. However, consulting firms are now experiencing heavy demand for their sustainability reporting expertise as deadlines approach. The work should be scoped out with IT as early as possible. Most of the scope can be clarified now. Finance and IT should accept that adjustments will be needed, but it’s wise to use resources now and make progress. In this case, perfect is the enemy of good. Motivation The tech community loves stimulating work – through either buying into a goal or working with innovative technology (and preferably both). You need enthusiastic professionals volunteering for this project, but you’re competing with exciting fields such as artificial intelligence and the possibility of going to other employers. The people you need have lots of options. Be aware of the nuanced differences between finance and tech culture and accept that you’re competing for talent. Reach out to the IT community in your business, explain that CSRD prevents greenwashing and that high-quality reporting is a noble undertaking that will help your business to show the world what you’re doing. True partnership is key Recognise the significant challenge presented for both IT and finance by the imperative to develop a quality, efficient sustainability reporting process at pace. A true partnership between finance and IT is the key to successful reporting. David Codd is a Non Executive Director and Strategy and Transformation Consultant

Kevin Empey explores the three phases of flexible work adoption, from foundational steps to future-focused strategies As we enter a new year, there is still a noticeable gap between desired employer policy and employee practice and expectations as to how flexible work arrangements should operate. This gap narrowed in 2023, with both employers and employees taking steps to make flexible working fit-for-purpose more standard practice, but the evolution of more flexible work models is far from over. The employment market in 2024 looks set to be split between two types of employers. First, there will be the employers who continue to be open about how and where work is done with an eye to emerging influences such as artificial intelligence (AI) and the four-day work week. Second, there will be those who revert to more ‘fixed’, pre-COVID work models and mindsets with minor concessions to demands for some form of hybrid working offering.  While other business and employment priorities take over the agenda in 2024, it doesn’t mean flexible work design is done and there is further change ahead.  In our experience, there are three distinct phases in the transition to flexible work models and how organisations are adapting to new and emerging realities. Phase 1: Base camp Some organisations (not many) are still in the early stages of settling on their flexible working vision. They are continuing to lay the groundwork for establishing new work models that cater to evolving work patterns and demands as well as organisational priorities. This phase involves embracing the basics, getting the framework up and running and also considering their flexible working strategy for frontline roles and work that cannot be done remotely. Phase 2: Integration Most businesses find themselves in this second phase. They have spent 12 to 24 months adapting to their declared approaches (the ‘what’) and are now in a position to refine and integrate their flexible models (the ‘how’) with the demands of their business. This involves addressing specific challenges encountered in recent months, bridging gaps between employer policies and employee preferences, and adapting legacy processes and definitions of productivity. The opportunity presented by this phase is to ensure that work redesign will be an ongoing expectation and reality and is just not about getting hybrid right. The risk of this phase is that employers allow poor habits and practices to set in and that the expectation and need for ongoing reform and improvement is not made clear.   Employees are also considering whether their employer’s flexible working models align with what they want. Continued flexibility and ongoing dialogue will be critical to keeping people on board.  Phase 3: Beyond hybrid Organisations that have reached this stage have moved beyond the hybrid conversation. They have integrated hybrid working into a broader flexible work model. Their experiences and approaches provide valuable insights into how this transition can best be managed. A critical theme in this phase is the shift in narrative, where the focus is not solely on the hybrid debate but on achieving work flexibility and adaptability more broadly across the organisation. This will include open work design conversations involving AI solutions, four-day work week options and other influences on how and where work can be done better and faster. This encompasses reforming processes, enhancing employee experiences, reconfiguring workplaces and aligning change with ongoing cultural and transformational agendas. In this phase, the emphasis also shifts to enabling teams to drive changes and improvements collaboratively rather than imposing them from the top down. Furthermore, continuing support for managers to lead ongoing change becomes paramount in ensuring sustained success. It is also quite common to see some organisations shift from one phase to another and back again, as they re-set strategies and solutions with employees and their people leaders. The future agenda  As we move forward into 2024 and beyond, the perspective is shifting beyond the mere transition to hybrid working models. Building on recent hybrid working experiences and fostering a culture of adaptability and agility will be transformative for both employers and employees, narrowing the gap between what employers offer and employees want. The journey towards a flexible and adaptive workplace is ongoing and will continue at pace, with new chapters and milestones on the horizon. Those organisations that prioritise learning from recent experiences and adapting to change as an ongoing habit will be best-equipped to succeed and minimise the employer/employee gap. Kevin Empey is the Managing Director of WorkMatters

Trusted data is becoming a cornerstone of competitiveness as more organisations embrace analytics and AI. Eoin O'Reilly explains why Data plays a crucial role in almost every aspect of our lives. How our food is produced, how we interact with public services, how we manage our finances, how healthcare is delivered—all are critically dependent on data and how organisations use it. While the ability to leverage data is rapidly becoming a competitive differentiator for organisations, their challenge lies in the degree to which they can trust the data they use. Trust in information is becoming increasingly important as a new wave of artificial intelligence (AI) innovation blurs the lines between internal and external data. Published in December, The EY Ireland Trusted Data Report 2023, surveyed eight public and private sector organisations to establish how far advanced they are on data usage, AI adoption and data trust. Irish organisations demonstrated a strong understanding of the need for trust across the data lifecycle, the survey found, while progress had been made on key elements of the trust journey. Data that isn’t subject to continuous oversight cannot be fully trusted. It must be subject to constant verification and validation from the point of collection all the way along its journey to its use in analytics and AI. Data trust continuum As organisations embrace the increased use of analytics and AI, more must be done to extend and formalise the data trust continuum. With the rise of AI and generative AI (GenAI), in particular, the issue of data trust has assumed even greater significance. A breach of trust at any point on the continuum can have potentially devastating consequences for the organisation and society. Strong governance and data management are critical for data trust. There needs to be a more holistic approach to building data trust in organisations. This starts with determining how data aligns with business strategy and runs through to data control across the data lifecycle and its responsible use. Organisations need to develop a comprehensive framework that balances strategic vision with the appropriate management of risks and controls. EY’s survey reveals that organisations are at various points on their data trust journeys, with the strategic focus shifting to how data can be leveraged to add value to the business. They have robust data governance and compliance frameworks in place, but there is acceptance that these are merely the starting point on their journey along the data trust continuum. Irish organisations recognise and appreciate the crucial importance of data trust for their business operations. While there is a significant variation in the data maturity of organisations, they understand the need for continuous management and data monitoring at every point along the trust continuum. They are taking a wait-and-see attitude to AI, but they must take care that this does not mean they miss out on valuable opportunities. Eoin O'Reilly is Partner and Head of Data, Analytics & AI at EY Ireland. You can more about the EY Ireland Trusted Data Report 2023 here.

With tech-enabled fraud on the rise in Ireland, businesses must carefully assess and manage potential risks, writes Sara McAllister Ireland is a hub for data storage and technology organisations and, as such, we are at the fore of innovation and transformation. There is a flipside, however. As this industry grows and technology evolves, so too do risks associated with fraud. Businesses and organisations in Ireland have become a greater target for fraudulent activity by criminals looking to exploit vast amounts of data created, shared and uploaded every single second. The challenge now is how best to identify, monitor and manage this risk. The National Risk Assessment 2023, published by the Irish government earlier this year, points to Ireland being especially vulnerable due to the scale of technological infrastructure developed here. Its exploitation by bad actors could cause significant disruption. A rise in the volume of fraudulent attacks carried out in Ireland speaks to the appetite of those looking to exploit weaknesses in infrastructure, industry or organisations. With this heightened focus on Ireland, business and organisational leaders here may find themselves under pressure to assess, manage and prepare for risks attached to operations, both in-house and outsourced. Artificial intelligence As new technologies come on stream, the focus on risk reduction will need to move at a faster pace. Advances in artificial intelligence (AI) have helped scale businesses via real-time automation, but this technology comes with its own risks. Ultimately, it is a double-edged sword. On the one hand, AI has been a game-changer in areas like audit and forensics, allowing businesses to deploy ‘needle in a haystack’ algorithms to identify anomalies and exposures. This is one of the reasons we are seeing an improvement in the detection of fraudulent activity. On the other hand, AI has allowed bad actors to identify new opportunities to carry out fraudulent attacks, penetrating weaknesses in the new and novel AI technology businesses are learning to use. Hybrid and remote work Most businesses have introduced remote and hybrid working processes in recent years, and many will continue to review these policies in line with changing business needs. A key consideration in this context is the risk associated with social engineering threats, which rely on human error and can be much more difficult to detect than other fraud-related risks. Where employees work remotely, evidence suggests they are less likely to consider the legitimacy of communications they receive by email, for example, and may be more inclined to respond to fraudulent requests that appear to have been sent by colleagues or superiors within their organisation, creating vulnerabilities across entire business networks as a result. Security training and awareness is the first line of defence against social engineering, yet many organisations fail to sufficiently consider the risks associated with employees working on-site and remotely. Fraud trends Several other trends are raising concern for businesses, too, beyond AI and hybrid working. Synthetic identity theft uses legitimate and fabricated information to exploit vulnerabilities and remains problematic for businesses as it is increasingly difficult to detect. Account takeover fraud remains prevalent and, as the number of personal online and social media accounts increase, so too do attacks by criminals attempting to gain access to personal data or bank details, often through stolen information. Crypto currency fraud, albeit less mainstream, also fundamentally exploits technology control weaknesses to attempt to steal coins, such as Binance Smart Chain, Ethereum and Bitcoin. Necessary risk assessment The heightened risk landscape is part of a changing cybersecurity picture where digital technology is constantly being attacked and weaknesses are identified and accessed by criminals to exploit data and information for their own gain. Fraud risk must always be a key factor for consideration when managing shared infrastructure, data breaches, preventing unauthorised access and engaging with third-party providers, among others. Industry and political stakeholders are acutely aware of the challenges in this space. Without the proper risk assessment, governance and control mechanisms in place, any single attempt at fraud could potentially put a business at the centre of a perfect storm with a highly damaging aftermath.  Sara McAllister is Partner and Head of Business Risk Services at Grant Thornton

Female representations on Irish boards is up, but more progress is needed in the key decision-making roles of CFO, CEO and Chair, writes Meliosa O’Caoimh Female representation on the boards of Irish companies is improving, but progress is slower at the senior leadership level – particularly in key decision roles, such as Chief Financial Officer, Chief Executive and Chair.  This is according to the new annual report of the Balance for Better Business Review Group, which shows a 21 percent rise in female representation in ISEQ-listed companies over a five-year period. Now in its sixth year, the report also puts the current proportion of women on the boards of ISEQ 20 companies at 39 percent, exceeding the 33 percent target set for 2023.  The percentage of women on boards across other listed companies stands at 28 percent, also above the 25 percent target set for 2023. Private companies with Irish ownership have remained steady at 22 percent since 2021, up from 17 percent in 2019. Seeing a consistent year-on-year increase in gender balance on boards marks important progress, and the companies driving this change should be proud. Companies with more diverse boards are shown to outperform those with less diversity.  Progress at the senior executive level is also critical to both business success and safeguarding the board-level talent pipeline, however. Achieving gender balance in senior roles across all areas of decision-making is dependent on robust and business-led strategies, including succession planning, career pathways and the monitoring of progress through targets and data. Balance for Better Business is an independent business-led review group established by the Government. Its latest annual report included the results of research commissioned by the 30% Club with the support of the Department of Enterprise, Trade and Employment.  Two roundtable discussions on both the financial services sector and executive search were held as part of its research. The financial services roundtable brought together representatives from industry to focus on the challenge of achieving greater gender balance in roles with profit and loss or revenue-generating responsibilities.   Research in Ireland revealed that challenges emerge as early as a professional’s very first career choices and can have an impact across an organisation’s career processes and work design. Specific actions highlighted in this research include: extending graduate recruitment gender targets to include graduate first-role placements; mandated job rotation as part of early career development; and  replacing outdated stereotypical business development approaches with initiatives that are more appropriate to a modern workforce and gender-balanced customer base.   The research also highlighted the value of tracking targets and gender progress across each business area, rather than simply focusing on the company average, to demonstrate where action can be taken.  The executive search roundtable, hosted in partnership with Ibec, focused on the current processes for Chair and board appointments as well as C-suite appointments at the highest level.  Here, it was found that large private companies are more likely to have succession plans in place, while smaller organisations are less likely to benefit from existing succession plans.  Key recommended actions for boards and C-suites included:  adopting the 30% Club/Ibec Resourcing Code as the standard for nomination committees covering board and executive leader appointments;  advocating for succession planning in all roles across all boards; and  the adoption of ‘pathway to board’ type career resources.  Meliosa O’Caoimh is Chair of 30% Club Ireland

As relations with the West continue to cool, China is facing economic challenges reminiscent of the Irish economy in 2008, writes Cormac Lucey Tensions are growing between the China and the US as the latter leads the West in a sharp reversal of a policy of openness and commercial integration, which continued despite concerns about military espionage and intellectual property theft.  Now, the US is reducing its interactions with China, and a wave of reshoring/friendshoring is underway in the West. Under current President Xi Jinping, China has been picking territorial fights with its neighbours and Xi has reportedly asked his military to complete preparations by 2027 to seize Taiwan by force.  Meanwhile, senior Chinese political and business leaders are disappearing suddenly with alarming frequency and non-Han ethnic minority groups, such as the Uyghurs and Tibetans, have been subject to terrible oppression.  The Chinese economy is not faring much better. When I look at China’s economic position, I think we may now be witnessing ‘peak China’.  First, the country’s enormous property/debt bubbles are beginning to deflate. Coming into 2024, China is in a similar position to Ireland circa 2008. Its economic underpinnings are dangerously fragile, the first tremors of deflation are being felt and the authorities are insisting that everything is okay.  Over the past 15 years, China’s total debt levels (public plus private) have doubled relative to economic output (GDP).  According to Numbeo, a website that analyses the cost of living across different countries, rent yields in Beijing range from 1.45 percent (city centre) to 1.69 percent (suburbs). These yields are way below the lowest levels witnessed in Ireland at the peak of our property bubble.  They are lower than Chinese interest rates, meaning that buy-to-let landlords using debt to fund their purchases will face interest charges that exceed their rental income (negative carry).  Thanks to its now defunct ‘one child per family’ policy, which ran from 1979 to 2015, China faces a demographic implosion over the coming decades. The UN forecasts that its population will decline from 1.4 billion this year to 1.3 billion by 2050 – and below 800 million by 2100.  Today, China faces the same demographic and debt-deflation challenges that confronted Japan three decades ago.  For all the messiness and dysfunction of the West, democracy does force a society’s problems onto the political agenda rather than allow them to be suppressed, and it facilitates innovation over stagnation.    Cormac Lucey is an economic commentator and lecturer at Chartered Accountants Ireland

In the transformative era of 1920s Ireland, the Institute’s benevolent fund emerged as a pillar of aid. Now celebrating 95 years, CA Support remains a vital resource for Chartered Accountants facing hardship The 1920s was a time of immense significance, upheaval and formation in Ireland’s history. With the country’s independence in its infancy, this was a time when many important structures, proclamations, institutions, organisations and charities were born, including Chartered Accountants Ireland’s benevolent fund.  Founded in 1928, a time when there was no state welfare or support, benevolent funds were originally set up to assist those who worked within industries or professions who needed financial help for themselves and their families. In former decades, grants were primarily offered to widows to help them care for children and afford daily necessities. And while society has evolved and shifted, after 95 years, CA Support has proven to be as relevant today as it was then by continuing to be a trustworthy and reliable support system for thousands of Chartered Accountants and their families. It could be you It is a common misconception that financial professionals are always in good financial health due to their professional background. Like anyone in society, accountants come from all walks of life and can struggle financially for many reasons. Those who bravely contact CA Support are dealing with extreme hardships and burdens. Some common issues people present to CA Support with are:  redundancy; critical illness; bereavement of a loved one; marriage breakdown; domestic violence impacts; childcare and back-to-school costs;  household bills; and cost-of-living pressures. CA Support provides financial relief to about 100 beneficiaries every year. These are real people who are your professional peers, colleagues, friends and family who have found themselves in situations that have cost them their livelihood, financial security and family safety through no fault of their own.  Unfortunately, we can’t foresee what lies ahead in life, and for CA Support’s beneficiaries, it was almost inconceivable that they would ever need such support. Strengthening CA Support’s future Like most registered charities, CA Support relies on the generosity and goodwill of the Chartered Accountancy community. Without the kindness of members and organisations on the island of Ireland, CA Support would simply not be celebrating this milestone.  With your continued backing, CA Support hopes to support all those in our community for another hundred years.  If you are able to do so, you can donate to CA Support:  Online via the Chartered Accountants Ireland website or iDonate page at: idonate.ie/cause/casupport; By credit/debit card over the phone on 01 5233949/ 01 6377342 or 086 0243294; or By posting a cheque made out to CA Support at Chartered Accountants Ireland, 47–49 Pearse Street, Dublin 2.

Julia Rowan answers your management, leadership and team development questions I joined a new practice recently and now manage a team of six people. Everybody on the team is polite to me and each other. The work gets done, but there is little collaboration. Almost all communication is by email. Nobody speaks at team meetings. I have tried to find out what is wrong – but nobody will tell me. I find this exhausting. I work from the perspective that ‘everything is feedback’. And feedback is coming your way, loud and clear. The behaviour you are experiencing suggests that trust has broken down somewhere – most likely between team members.  Start to record what it is that you find exhausting about this situation. Do things take longer than they should? Are reasonable quality standards only being met with your input? You need to be able to be specific.  You also need to take a dual approach. First, let the team know that you need something different from them. Be very careful about your language – make observations (“I notice I’m being included in emails”) rather than judgements (“this isn’t good enough”).  Second, you need to start ‘calling out’ the tasks you find yourself doing that are not part of your job and handing each one back to the person who owns it. Conflicts like this can take a long time to get sorted, so it is especially important to be polite, patient and persistent.  I moved from a large consultancy firm to a smaller practice for lifestyle reasons some years ago. It’s been a good move, but I miss the variety, intensity and impact of the work I used to do. The work I do here is much more humdrum than in my previous roles and I feel like the other partners haven’t accepted me. They have worked together for a long time and are of one mind. My ideas are rejected.  I remember coaching a guy years ago who felt like an outsider on the team he managed and with his peers on the senior leadership team. He told me he was “very good at pretending to listen”.  And therein lay his problem: there are some things we can’t fake. Relationships are built on sincerity. So, I wonder what it is like for this practice to have invited you in … a person who finds the work “humdrum”. Do they sense your judgement?  I think the first thing you need to do is work out a way to engage with this practice sincerely. Write down the most honest observations you can make about your experience working there – to yourself, your peers and your team.  Write about how you feel about the practice, your ambitions and what you have lost by joining. Then (and only if you are sincerely interested), find a way to engage with your peers about what they have built and how they built it. What were their hopes, challenges and successes? What are they proud of?   It might also be helpful to look at your language. When stressed, we go to that very definite language (e.g. “they are all on the same page”). And the danger is that we start believing our thoughts.  Might it be more truthful to say, “they are often on the same page” or “many of them are on the same page”?  While that may sound trivial, it can change our perspective.  Once you’ve done this work, you should organise one-to-ones with your peers over lunch or coffee and try to connect with them genuinely. When people feel accepted, they find it easier to accept others. Julia Rowan is Principal Consultant at Performance Matters Ltd, a leadership and  team development consultancy. To send a question to Julia, email julia@performancematters.ie

As we prepare to usher in the New Year, three Chartered Accountants tell us about the biggest changes and challenges they have faced in their professional lives over the past 12 months Michelle Hawkins  Head of Business Advisory FPM 2023 has certainly been an interesting year!  As Head of Business Advisory at FPM, I support both public sector and private clients as they navigate these difficult times. A key challenge in 2023 has undoubtedly been the unprecedented rise in interest rates, resulting in difficulties accessing and servicing finance.  Clients increasingly require support in this area. To address this, our organisation established a dedicated Funding Solutions Division designed to help clients renegotiate their banking and loan commitments. The talent shortage and skills gap that our clients have experienced in the past year has been among the biggest in history.  It’s hard to believe that, in the current economic climate, lack of available talent is the number one challenge keeping businesses from growing and innovating. In response, we launched a Virtual Finance Function to support businesses that need to strengthen or fully outsource their finance department.  Another challenge this year has been the need to help businesses prepare for the impact of the Windsor Framework, which came into force in October. We are fortunate to have customs experts within the AAB Group with which we recently merged, whose knowledge and skills have greatly supported clients adapting to the new regime. John Morgan  CFO Dale Farm Coop I will most certainly view 2023 as a pivotal year in my career.  After spending 20 enjoyable years in a plc environment with BT, I took a leap into the unknown, joining Dale Farm Coop as Chief Financial Officer – switching not just to a different business model but also a very different sector.  Cash management has been crucial in both roles. During my time working with a plc, good cash management was about ensuring that we delivered our quarterly cash commitments to the city.  At Dale Farm, it’s about ensuring that our debt levels are controlled while paying a milk price that’s as competitive as possible. On reflection, the main challenge so far in this role has been managing the balance between profit and milk price. As a coop, our primary objective is to pay our members the most competitive milk price we can.  To achieve this objective, we need to generate a certain profit level to fund working capex/capex requirements and ensure we pay a competitive milk price over the long term. Managing this balance is critical to the role of CFO at Dale Farm.  Communicating directly with our board, leadership team and members to explain why we need to make a certain level of profit has been a key focus for me in 2023.  My second biggest priority since joining Dale Farm has been the management of interest costs and working capital levels.  Due to our investment strategy, debt levels have increased and, as interest rates have doubled over the last 12 months, this has required greater attention on working capital management. Educating the business on the parameters and importance of working capital has been a priority for me.  I would advise anyone considering a move between industries and business models to embrace the opportunity. I’ve found the change invigorating and I’m pleasantly surprised at how the core skillset of a Chartered Accountant can be applied so well in such different environments. Brian McNamara  Managing Director SwiftFile Customs When the post-Brexit trading environment kicked in almost three years ago, much of the initial focus was on keeping goods moving whereas ensuring compliance was not necessarily given the same level of attention by importers unfamiliar with customs obligations.  After a relatively relaxed initial approach from the Revenue Commissioners, 2023 has seen a significant increase in the number of companies selected for customs audits. With this, we have certainly seen a heightened awareness of the importance of managing customs risk. With Revenue audits now becoming the norm for importers and the potential fines and penalties that go with them, this is a trend I expect to see continue. October 2023 also saw the introduction of the Carbon Border Adjustment Mechanism (CBAM), the EU carbon tax on imports.  While not a core customs issue, the CBAM reporting requirements for importers of iron, steel and cement (initially) are particularly onerous.  Staffing continues to be a challenge in our industry. The economy has slowed in 2023, and there have been some high-profile job losses in the technology industry. As with other sectors, however, there are industry-specific reasons for staffing challenges in customs clearance.  Thirty years of single market membership has meant a shortage of customs professionals. Now that the UK has left the EU, it will take time to build the knowledge base on customs in Ireland. In the meantime, we address this issue by providing comprehensive in-house training.  Thankfully, everything stops moving over the Christmas period. This will allow us all to take a well-earned break and come back ready to meet challenges as they present themselves in 2024.

The launch of a consultation on a new national financial literacy strategy for Ireland is welcome and accountants will be key as gatekeepers of financial knowledge, writes John Nolan Making financial decisions and navigating the world of finance is an unavoidable part of life, from setting up your first savings account to planning for your retirement and everything in between.  However, increasing numbers of people in society struggle with such tasks and these difficulties are further exacerbated by the ongoing digitisation of financial services.  ‘Financial literacy’ is the ability to engage with the financial system and to effectively manage your finances. While the concept is hardly new, it has received notable academic and political attention in the years since the onset of the global financial crisis in 2008.  That period was an inflection point that highlighted the financial struggles of many households and small businesses and the implications for the broader economy and society. o Since then, the financial experiences of many during the recent COVID-19 pandemic and the current period of high inflation and interest rates have heightened the focus on this issue at a government policy level. Low levels of financial literacy Research by the Organisation for Economic Co-operation and Development (OECD) has shown that financial literacy levels are worryingly low across the world. In the EU, a 2023 survey found that just 18 percent of respondents have high levels of financial literacy, with Ireland only marginally better at 19 percent.  These findings are a big concern for public policymakers because financial literacy improves our financial resilience and ability to deal with financial shocks, it increases our financial wellbeing and it contributes to the stability of the financial sector overall.  European Commissioner Mairead McGuinness is leading a policy initiative focused on financial literacy and encouraging European Union (EU) member states to develop national strategies aimed at ensuring a coordinated approach to financial education.  This comes on the back of over a decade of work by the OECD International Network on Financial Education (OECD/INFE) in establishing best practice guides for the development of national strategies and the measurement of financial literacy within populations.  A national financial literacy strategy In Ireland, Minister Michael McGrath recently announced plans by the Department of Finance to develop a national financial literacy strategy.  This is a welcome move and one that a variety of stakeholders have been calling for, including the Central Bank of Ireland, Social Justice Ireland and the Competition and Consumer Protection Commission (CCPC).  The new strategy will help to ensure Ireland is compliant with the G20/OECD High-Level Principles on Financial Consumer Protection and the OECD Recommendation on Financial Literacy.  We have been behind the curve in this area, with the Retail Banking Review published in 2022 by the Department of Finance noting that Ireland is one of just four EU member states that does not have a national strategy for financial literacy.  While some important studies and reports have been undertaken in an Irish context – by the National Adult Literacy Agency (NALA) and by the CCPC, for example – there is no coordinated national approach to financial literacy.  There remains a need for an overall framework for financial education initiatives, funding for research to develop baseline measures for financial literacy across the population and to support evidenced-based interventions, and a clear set of objectives to guide stakeholders. The decision to engage with stakeholders to develop a national strategy is perhaps the easiest step to take. The devil will be very much in the detail as we progress to the substance of what such a strategy might entail and where the focus and investment should go.  Three issues illustrate this complexity – and this is by no means an exhaustive list: Where to start? First, one critical decision is which groups in society should be targeted initially to ensure the most effective use of resources and that true value is derived from financial education initiatives.  The G20/INFE High-Level Principles suggest that focusing on specific (or vulnerable) groups for financial literacy interventions makes sense for many countries.  Research by both the OECD and EU has shown that there are some cohorts within populations that tend to have consistently lower financial literacy levels.  The recent launch by Commissioner McGuinness of a joint EU/OECD-INFE financial competence framework for children and young people highlights one relevant group that might be a natural starting point for any national strategy.  A focus on young people’s financial literacy – and embedding this in education systems to facilitate a culture of financial conversation early in life – seems logical.  Research has identified numerous other groups with consistently lower levels of financial literacy, including the elderly, low-income households, migrants and those with low digital literacy, for whom financial literacy interventions would be particularly beneficial.  One additional group is of particular relevance to accountants and it is under-researched in the context of financial literacy – entrepreneurs and small business owners.  The transition from the personal to the entrepreneurial in the context of financial literacy is significant.  The additional scale, responsibilities and complexity of the financial landscape for small businesses can overwhelm their owners.  The absence of financial literacy in the indigenous business sector has the potential to be just as damaging to the economy as a lack of personal finance skills among the general population. Financial literacy as a social practice Financial literacy is a social, rather than just a technical, practice. It is a social and human-centred practice in the sense that it is heavily influenced by peers, family and social institutions.  It is a much more complex issue than a mere ‘skill gap’ to be solved through financial education interventions.  Taboos surrounding personal finances, and discussion on the topic, can have a significant impact on how people view its importance and the need to upskill in the first place.  An appreciation of the complexity of financial literacy and how it fits within the social and cultural fabric of communities will be a serious consideration for any new national strategy. Clear concepts and terminology Discussing financial literacy and developing a strategy is further complicated by how its key concepts and terms have changed over the past two decades.  For example, the UK’s national strategies have evolved from a Financial Capability Strategy for the UK in 2015, which was replaced by the UK Strategy for Financial Wellbeing in 2020.  While traditionally associated solely with knowledge, ‘financial literacy’ has evolved to encapsulate skills, behaviours and attitudes, which is closely aligned to the concept of ‘financial capability’. The terms are now often used interchangeably.  The table below presents some of the key terms currently used in this area, and how they have been defined.  The overarching goal of achieving ‘financial wellbeing’ is itself difficult to define and will mean different things to different people.  Thus, in the context of any new national strategy, it will be important to clearly articulate the objectives and what is meant by the terminology that is used. Finance is a sector whose jargon can overwhelm people, so it will be essential that any new strategy avoids this. Public interest The evolving policy focus on financial literacy should be of interest to accountants. A commitment to the public interest is one of the hallmarks of the profession.  Given the emerging evidence of the impact that poor financial literacy has on wealth inequality, financial exclusion and other adverse financial outcomes, addressing this issue is clearly in the public interest.  Accountants occupy a crucial position in society as gatekeepers of financial knowledge. We have a responsibility to utilise this position for good, both at an individual level in our interactions with clients, colleagues and the community and at a collective level in terms of support for the new national financial literacy strategy.  This is not just a policy for individuals and households; it is also for entrepreneurs and micro, small and medium-sized enterprises. Accountants, as trusted business advisors with financial expertise, have a key role to play in shaping and applying this policy. Financial literacy is about our relationship with money, which is, whether people like it or not, a core part of society. Promoting a culture of positive engagement with the financial sector and discussing finance from an early age is vital for a functioning economy and society.  Individuals and businesses rely heavily on financial services every day; at a minimum they should be confident and capable of accessing and engaging with what they need.  While financial literacy is likely something most accountants take for granted, for many in society it is a significant challenge. This is something we will be hearing a lot more about from a policy perspective in the coming months and years. Dr John Nolan, ACA, is a lecturer in corporate finance and financial reporting at the University of Galway

A successful flotation is a major milestone for any ambitious company but the path to IPO-readiness is paved with challenges and careful preparation is crucial, write Ciara O’Callaghan Crehan and Eimear McDermott The public markets are a bellwether for economic confidence at any point in time and we have witnessed a challenging period for equity performance and new issuances recently.  While the public markets offer just one source of potential funding for a business, an Initial Public Offering (IPO) is seen by many as a particularly significant milestone for promising businesses and IPO activity as an indicator of wider economic health.  There are numerous reasons why companies may want to list on a stock exchange. These include access to a new pool of capital to help take them to the next level, enhanced profile and prestige, a clearly defined business valuation and a route to exit for founders and shareholders. Raising capital through the public markets takes time and lots of preparation, however, particularly in a period of prolonged economic uncertainty.  Current IPO market conditions The current IPO drought has persisted for more than 18 months, but this doesn’t mean pre-IPO companies should be inactive. Rather, we would suggest taking advantage of the current lull to prepare now for a public offering further down the line. Already, we are starting to see the first green shoots of recovery. The third quarter of 2023 produced 36 IPOs that raised a combined total of about $8 billion. This was the same amount of proceeds raised for the full year in 2022 and was led by the largest tech offering in years, ARM, which raised approximately $4.9 billion. In particular, we are seeing a growing number of large corporates opting to consolidate their market listings on – or undertake a general move to – US markets. While this is not good news for stock exchanges in Ireland or Europe, it demonstrates the continued dominance of the US capital markets for access to funding.  The next wave of IPOs will be led by those companies that do the hard work of preparation today, readying themselves for amplified scrutiny and accountability and working to make the necessary corrections big and small. Choosing the right stock exchange Many factors play into the decision on where to list a company, including: Access to capital, which is critical – in many cases companies will decide to list on multiple exchanges to broaden their investor base; Market visibility and the reputation of the exchange, which may be known for a particular focus area; Liquidity and trading volumes; Regulatory requirements, which differ significantly across markets – the US capital markets are the most onerous from a compliance perspective but are more attractive to many stakeholders, from suppliers to employees and particularly to investors; and Expansion into new markets and peer group comparison. What it takes for a successful IPO  Any successful IPO needs a compelling equity story. In the current environment, IPO candidates need to be able to demonstrate a resilient trading performance and compelling strategy for future growth to tempt investors.  It is also important that the valuation expectation is reasonable. With a particular focus on the US market, some of the key steps in a successful IPO journey include: Ensuring you have a first-class management team and advisors; Getting your IT systems and control environment in order; Improving your financial reporting and getting audit-ready; Addressing change through a people-centric transformation programme; and Addressing environmental, social and governance-related performance and strategy upfront. It’s a team game The path to becoming a public company depends on a coordinated team effort by management and external advisors. In our experience, which spans both sides, we believe there are several critical ingredients to success: An experienced management team, ideally with some IPO experience that can build a strong equity story during the roadshow; External advisors with IPO credentials, contacts and industry experience; and A structured transformation of the people, processes (with a particular focus on technology) and culture of the company. IT capacity and controls Companies should not overlook or underestimate the ‘heavy lift’ needed for readying their IT systems ahead of a planned IPO. Some of the IT systems and tools commonly used by private companies in many cases cannot scale to meet the technology requirements of a public company.  Many companies face fundamental challenges in understanding their existing IT landscape and the interdependencies that exist between the different elements therein.  This is particularly important because you cannot expect to achieve a robust internal control framework for financial reporting without a strong partnership between the IT and finance teams.  It takes a coordinated approach – with informed, experienced leadership – to break down silos and ensure that everyone is speaking the same language. Getting the governance right at the outset is a prerequisite for successfully establishing and embedding your control framework. Companies that have not historically invested in technology and tools for financial reporting and business operations might struggle with the limitations of their existing technology if this is not addressed as a priority at the outset.  Assessing IT across people, processes and systems is critical. Taking a risk-based approach – and strategically sequencing your transformation initiatives – is equally important.  Early in the preparation phase is the time to get the fundamentals right, and to ensure that each step of your transformation is aligned to your IPO target state.  Companies should be incorporating audit and control requirements into their procurement decisions when looking at investment, alongside business, information security and other assessment criteria.  Financial reporting and audit The level of auditor scrutiny on public companies is high and ever-increasing. Therefore, getting your company’s historical accounting and controls in order is essential pre-IPO.  As already mentioned, it is critical to have the right technology in place here alongside the right people – and to give them sufficient lead time to do the work needed. In preparing for the rigours of an IPO, an auditor may have to re-audit parts of prior years’ accounts and update procedures to meet the higher standards expected of a public company. They will likely have to update controls and processes and document all key controls.  It is an arduous process and one that cannot be rushed. Early engagement with the audit team is important.  In our experience, bringing your auditor into the fold at agreed milestones can be hugely valuable in ensuring continuous alignment and avoiding any unexpected curveballs as you navigate the IPO journey. Tailored people-centric approach An IPO journey will have its challenges. It requires major transformation involving upgrading technology, improving financial reporting processes and implementing governance, risk and compliance capability. All are critical.  So too is a people strategy that sets out the vision for a collaborative and supportive post-IPO culture incorporating diversity, equity and inclusion as well as helping to guide how the business plans to achieve its environmental, social and governance (ESG) goals.  And finally, ESG As ESG continues to gain momentum, it is becoming a fundamental consideration for companies making strategic decisions in areas including funding.  Integrating ESG reporting into the equity story has become key for investors and, consequently, it is an increasingly important aspect of the IPO readiness plan for issuers.  This is especially true in Europe where regulatory requirements for listed companies will become mandatory as the European Union’s Corporate Sustainability Reporting Directive (CSRD) comes into effect. An ESG strategy is now a must-have for any company considering an IPO.  Becoming a public company and raising funding on the capital markets has always required lots of work and preparation.  Alongside a company’s equity story, financials and governance, there is now a broader focus on technology, culture and people strategy as well as ESG commitments and performance. The current market lull could provide just the ‘pause’ some companies need to prepare thoroughly for a successful flotation and future growth.  Ciara O’Callaghan Crehan and Eimear McDermott are co-founders and directors of Odyssey Consultants, a boutique risk and management consultancy for helping companies at all stage of their journey reach new horizons

Jonathan Wilson talks us through his career from his training in Belfast in the nineties through to his current role as Managing Director, Chief Internal Auditor with Barclays Europe In the 30 years since he began his training contract in 1993 with BDO Stoy Hayward in Belfast, Jonathan Wilson has carved out an accomplished career in internal audit in banks ranging from National Australia Bank and Danske to NatWest and now Barclays. Here, he tells Accountancy Ireland why he chose to specialise in audit and the decisions, opportunities and lessons that have helped him progress his career to date. Do you remember when and why you decided to train as a Chartered Accountant? When I was ten or 11, it seemed like all the kids around me wanted to be pilots or astronauts. I wanted to be an accountant. My uncle was an accountant, and I had a genuine interest in business – in particular, business performance – from a young age.  That’s why, when I finished at Methodist College in Belfast, I chose to study economics at Queen’s and, from there, to join BDO Stoy Hayward in 1993 to train as a Chartered Accountant. I got great training with really broad experience and, at an early stage, decided I wanted a career in industry rather than practice.  I started to focus on internal audit and risk management and joined Northern Bank in Belfast as a Senior Auditor in 1999.  Because National Australia Bank owned Northern Bank at that time, I got the opportunity to move to Melbourne in 2002 as a Senior Audit Manager working across areas ranging from corporate banking to retail services, finance and risk. That role also allowed me to work in New Zealand and in Asia and, when Northern Bank was taken over by Danske Bank in Ireland, I was asked to come back to help manage the transition as its Head of Internal Audit in the North and south. After five years, I was given responsibility for Danske Banks’ Internal Audit in new markets including Sweden, Norway, Finland, Russia, Poland and the Baltics. I then had a brief period as Group Chief Auditor with the Irish Bank Resolution Corporation followed by 18 months as Head of Audit with AIB. I joined NatWest as Chief Auditor in 2014 and started in my current role with Barclays in January 2023.  Are you glad you decided to qualify as a Chartered Accountant? Has the qualification helped or hindered your career? Being a Chartered Accountant can open up so many professional opportunities. You need a lot of discipline, patience and perseverance to earn the qualification in the first place and this experience has helped me enormously in my career since. Chartered Accountants can work in a really broad range of environments – from all kinds of businesses to practice or the public sector – you name it. This scope has given me a strong grounding in understanding how business works, not just from a financial point of view, but also in a broader sense. Tell us about your current role as Chief Internal Auditor with Barclays Europe. When I joined Barclays, it had been in Ireland for more than 30 years, but it was facing a new set of very exciting opportunities in the wake of the Brexit vote.  I now lead a very experienced team of audit professionals based in Dublin, Paris and Frankfurt. The organisation is incredibly diverse, not just geographically but also in terms of the people I work with every day. I am ultimately responsible for the quality of the assurance work our team provides and I am lucky to have a team of strong directors working with me. As well as our assurance work, we are expected to add real value to the business in terms of risk management and systems of internal control. What are the biggest trends and developments you have seen in your profession and the wider market since starting out? Traditionally, auditing was very manual with lots of paper records stored in Lever Arch files and big, heavy briefcases. Audit software was only just beginning to emerge at the start of my career and it’s amazing to reflect now on how much this whole area has since evolved. Today, we are dealing with metadata and approaching the operating audit with a much greater emphasis on digital tools. Auditors nowadays need to be digitally enabled and we are also beginning to look at how we can use artificial intelligence in our work in the future. When I did my MBA with Manchester Business School, my specialist topic focused on the various financial crises we have experienced going right back to the Wall Street Crash of 1929. In the years since, the time lag between financial crises has narrowed dramatically. We used to get one every 50 years, but now we are finding ourselves in a crisis every five or ten years. I have experienced a number of these crises working in internal audit, and my international experience has given me a good perspective on how best to deal with them. Is there anything in particular you have learned in your career that has stood you in good stead? When I was with National Australian Group, Mark Martinelli was the Chief Auditor. He was a big influence on me. He taught me to ask the simple question: “If it doesn’t make sense, why doesn’t it make sense?”  We can get carried away, agonising over complex and difficult tasks and challenges. Sometimes, the best approach is to return to your key audit principles and ask this one simple question – and keep hold of it until you get the answer. Audit standards have been developed and refined over the years, but the core principles are the same today as they were when I was starting my career. Our role is about providing assurance and gathering sufficient audit evidence; it’s about our control objectives. Asking the simple questions is vital. What career advice would you offer your younger self if you had the opportunity? Don’t narrow your horizons. Keep your aspirations broad and try to work across as many different companies and countries as you can.  Also, do things you like to do and enjoy what you are doing. My son once considered a career in medicine, but he’s now an accountant – somewhat to my surprise!  When he told me he had taken a job with a film company making documentaries for Netflix, Disney and Amazon, I had some concerns given the insecure nature of the industry. Then I thought, “Actually, that sounds really exciting”. In the end, I told him to go for it – he would have anyway! I suppose my advice is that you shouldn’t make choices in your career to please anyone else. Do the things you want to do for yourself and don’t be afraid of failure. Finally, what are your career plans from here on in? I love the job I have right now. I’ve only been with Barclays for a short time and I have the ‘fuel in the tank’ to expand and develop in this role. It is a big challenge, but it’s very enjoyable. Another aspect of my career as a Chartered Accountant I find really rewarding is the scope it has given me to apply my skills volunteering as a trustee with various charities and sporting organisations.  I have done a lot of volunteering outside my ‘day job’ and my background in Chartered Accountancy has been incredibly valuable here. When eventually I am no longer working full-time, I hope to be able to continue in non-executive board positions and to continue to use my skills and experience where it may be required.

The EU Commission’s new enlargement package sets out ambitious plans for expansion but the rule of law and defence must govern any future accession negotiations, writes Judy Dempsey It was reminiscent of 1 May 2004, when the countries of Central and Eastern Europe joined the European Union (EU).  For their citizens, that day almost 20 years ago was not just a euphoric occasion, it was about returning to Europe – an aspiration that must have seemed remote while they were under the communist yoke from 1945 to 1989. Now, the opportunity for Ukraine and Moldova to join the EU is very real, following Ursula von der Leyen’s decision to unveil an ambitious enlargement package last month. The President of the European Commission announced on 8 November that the EU would open accession negotiations with Ukraine, Moldova and Bosnia and Herzegovina, while also granting Georgia candidate country status.  It will take several years for these countries to join the EU. Leaving aside how the war in Ukraine might end, significant issues will need to be addressed in all four: corruption, the role of the oligarchs, human trafficking and the weak independence of the judiciary, for example.  EU leaders will have to give von der Leyen’s plan the green light during their December summit.  Some will baulk at how Bosnia and Herzegovina will be able to begin accession talks despite ongoing misrule and ethnic tensions among leaders of the Serb community. Backed by Russia and its neighbour Serbia, it has long sought to have its own autonomous region. Yet, for all these problems, this next enlargement should be a chance for the EU to tackle two big issues that undermine the union’s credibility.  The first is how several countries, led by Hungary and Poland, have blatantly flouted the rule of law. For several years, Budapest and Warsaw have run roughshod over the judiciary, the media and the appointment of chief prosecutors.  Hungary’s Prime Minister Viktor Orbán has misappropriated EU funds in addition to promoting his own appointees loyal to the governing Fidesz party, to universities and other educational institutions.  And this is just the tip of the iceberg. In Poland, the judiciary, media, education and private sectors have been subject to interference from the governing conservative/nationalist party.  The Law and Justice party lost the recent parliamentary elections, however, so there is a chance that the centrist Civic Coalition party may put the country back on the path of the rule of law.   This is important for countries trying to make their way into the union.  Imagine sitting in Kyiv and seeing judges intimidated or sacked in an EU member state because they don’t toe the governing party line?  Civil society activists in Ukraine and Moldova have been campaigning for many years to root out corruption and establish a transparent court and judicial system free of state interference, lobbies and oligarchs. The second issue facing the EU is how, as a bloc, it cannot defend itself.  With the current instability along Europe’s eastern borders and its southern neighbourhood, the EU lacks the capacity to defend its citizens and provide them with the security they need and which, until now, had been provided by the NATO alliance.  Soft power takes precedence over any kind of hard power despite what is happening in Ukraine. These two issues – the rule of law and defence – are about the credibility of the EU and making the bloc ready for the next round of enlargement.  Judy Dempsey is a Non-Resident Senior Fellow at Carnegie Europe and Editor-in-Chief of Strategic Europe