Members

The membership has voted to re-elect the Officer Group for a second term as the Institute and broader profession seeks to re-emerge from the COVID-19 crisis. President Paul Henry, Deputy President Pat O’Neill and Vice-President Sinead Donovan discuss the year that was and explain their priorities for the year ahead. The re-election of the Officer Group for a second term is an unprecedented step in the Institute’s recent history. Can you explain the thinking behind it and outline what it will mean for members as we enter a new phase in living with COVID-19 and its consequences? Paul Henry (PH): At the recent AGM, a proposal was put to – and passed by – the membership of Chartered Accountants Ireland to extend the term of the Officer Group by one further year. The coronavirus pandemic effectively halted important parts of the President’s role, not least outreach and member representation activities. As such, Council felt that an extension of our term would provide an opportunity for the Officer Group to achieve our objectives in a meaningful way for the benefit of members while providing much-needed stability and continuity as the pandemic on the island of Ireland enters a new phase. Over the past year, I have sought to provide leadership at a time of uncertainty as the island grappled with the challenges of COVID-19 and Brexit. During that time, I – along with my colleagues in the Officer Group – supported the advocacy activity of the Institute to alleviate pressure points for members so that they could continue to deliver for their businesses and clients. I also focused on attracting new talent to the profession, continuing a long tradition of positioning the Chartered Accountant qualification as the gold standard for the accounting profession. Looking ahead, the Officer Group will continue to lay the foundations for renewed growth in the aftermath of the pandemic. The future is uncertain and, for many, survival is the sole objective. My goal is to help Chartered Accountants, both in business and as advisors to business, prepare for the challenges that will come as economies re-open and a new ‘business as usual’ takes hold. Pat O’Neill (PON): The profession has worked through many unprecedented issues since the middle of last year, and now we are figuring out how to emerge from a period of significant restriction. We deliberated on the benefits that continuity would bring and concluded that as the economy opens up, the President and the Officer Group will have an opportunity to advance the member-focused initiatives identified at our election in 2020. So in terms of overseeing the evolution of our education model – and in the last year, that has entailed keeping the path to qualification clear and open for our students and member firms – this continuity is vital. We are also focused on supporting our future pathway to being a more digital organisation for the benefit of our members. And not least, we need to support our members in dealing with the challenges of emerging from the pandemic and the Brexit transition. Sinead Donovan (SD): As an Officer Group, we spent much of our time over the past year in fire-fighting mode. We now have an opportunity to make progress on issues of critical importance on a more proactive basis, and our re-election allows us to conclude some complex issues while putting the Institute and the profession on a solid footing as the vaccination programme and economic recovery gathers pace. The virtual environment has been a largely positive experience for the Institute and its members, but not without its challenges. How can members and students expect their Institute to evolve as the vaccination programme continues and restrictions are eased? PH: Since the pandemic took hold, members have benefited from a greater degree of accessibility to their Institute, and that will continue. There will also be a continued emphasis on upskilling and knowledge sharing, as the Institute’s suite of webinars, bulletins, and other digital communications have been invaluable in helping members adapt to remote working while staying on top of relevant technical developments in the profession. We will also continue to work on our digital education offering. Last year, the Institute moved from a traditional in-person examination model to a virtual examination environment, condensing a five-year project into a far shorter period. There have been challenges and setbacks on this journey, and I acknowledge the difficulties our FAE students faced in April. We knew at the outset that there were risks involved in moving all examinations online, and it has been our objective over the last year to mitigate these risks to the greatest possible extent. More than 20,000 virtual exams have now been completed, and we will continue to work closely with our partners to test and develop the platform as we improve the Institute’s digital capabilities into the future. PON: The experience of the virtual working environment has been different for everyone. Large organisations, for example, have central functions, which makes the transition to a virtual working world that bit easier. In contrast, some smaller businesses and practices struggled to adjust to new technology and remote working norms while achieving some degree of work-life balance. And whether you are in business or practice, the process of developing relationships with new customers or clients has been challenging. Indeed, certain ways of working have changed irrevocably, but the value of face-to-face interaction cannot be overstated for many members. We have seen this demand for connection through increased engagement from the membership with services provided by the Institute, such as webinars and digital networking events. Our district societies, both in Ireland and abroad, have played a vital role in this regard, and as Paul said, the Institute was at the vanguard of online education delivery at the very outset of this pandemic. Although the Institute embarked on its digital journey before the arrival of COVID-19, we will continue our measured approach on that journey as we seek to maximise the benefit to our members. SD: One challenge that will become crucial for the Institute is the absence of in-person, on-the-job training, which many trainee Chartered Accountants have now missed out on. The profession may not see the impact of this development for several years. Yet, we must be mindful of this and work to ensure that those trainee Chartered Accountants most affected by the pandemic from a training perspective are upskilled accordingly in the months and years ahead. PH: That is correct, and we must also bear in mind that the current crop of students is missing out on vital peer-to-peer networking opportunities. One of the most notable benefits of my training has been the number of people who studied alongside me that ultimately became lifelong friends and business acquaintances. Unfortunately, students are missing out on that engagement and vital on-the-job learning that helps them develop critical soft skills, which are increasingly crucial for the Chartered Accountant of the future. The business community continues to grapple with a host of issues from Brexit and sustainability to good governance and diversity and inclusion. How is the Institute maintaining its focus on these issues while supporting its members through the COVID-19 crisis? PH: The Institute has adopted a proactive stance on these key issues, notably Brexit. There has been much debate about the Northern Ireland protocol. Irrespective of your position on it, the profession must endeavour to make the best of the situation in the best interest of the island of Ireland while becoming more familiar with the associated operational issues. In terms of sustainability, there is a clear opportunity for members to lead the charge in tackling the climate crisis. As business advisors, we can help people understand and record their sustainability activity and begin to report on that activity in a meaningful and confident way. This work will evolve greatly in the coming months.  The Institute also continues its work in critical areas such as diversity and inclusion and ethics and governance. Many members volunteer their time and expertise on a range of expert working groups, and I would like to express my gratitude to them for their involvement in the Institute and selfless work in the interest of the broader profession. This individual commitment is reflective of the broader societal contribution that we can make.  PON: It has been remarkable to see the extent to which, in particular this year, organisations have pivoted their narrative reporting to highlight their focus on issues such as governance, climate, and diversity and inclusion. We continue to promote these agenda items for our members through member committees, including those devoted to ethics and governance and diversity and inclusion. Much good work has been done in the past year or more, but the journey is just beginning in many respects. The Council of Chartered Accountants Ireland is very gender diverse. However, we have been working to ensure that diversity and inclusion are more formally incorporated into the appointments process for the Institute’s many boards and committees. I am glad to say that the Institute is moving in the right direction and at pace on many fronts. SD: 2021 is the year in which we need to take a giant leap forward in some of these areas. I fully appreciate the need to move forward with care, but the pandemic has also presented a catalyst for change. The past year has forced people to think about what has happened and what could happen in the future. At a very practical level, I have seen a distinct change in the rhetoric used around diversity and inclusion. There is still a degree of nervousness when it comes to asking specific questions of our membership, but I sense that the membership is becoming increasingly receptive to speaking out about diversity and sharing the many stories that are there to be told by our 29,500 members. And it isn’t just about our current members. The Institute and the profession as a whole must endeavour to be dynamic, vibrant, and attractive to the next generation of Chartered Accountants. We have made very good advances on that front in recent years, and it is up to us to maintain that momentum. Your re-election seeks to bring a sense of continuity to the profession at a critical juncture. But looking to the future, what is in store for the profession and its members in the decade ahead? And how will the Institute help them prepare for the changes that will come? PH: The future for Chartered Accountants is, in my view, very positive. People need advice in an increasingly complex world, and the members of our profession are trained to handle, interpret, and communicate technical information and data in a clear, accurate and insightful way. As the level of complexity grows, so too will the importance of those communication skills. And while artificial intelligence will support us in providing advice to clients, I don’t see it as a threat in any way. Instead, it will improve the insights we provide to our clients. PON: The Institute is working through its implementation of Strategy24. If I’m honest, the pandemic has meant that we need to be agile in terms of planning ahead. So, looking out to the end of our strategic planning period is difficult to do with much accuracy at the moment, not to mention beyond that. That said, issues such as the increasing digitalisation of business and the profession will be a challenge. Cybersecurity, automation, and analytics are becoming increasingly real for businesses. Business leaders – and, by extension, Chartered Accountants – must continue to embrace these developments. Taking a longer-term view, the Institute is also engaged with the Department of Education regarding the accounting syllabus in secondary schools in Ireland. This is an excellent example of the Institute looking forward and playing a very positive role in ensuring that the accountancy profession continues to play its part in shaping the education of the next generation of Chartered Accountants. What have you learned about leadership over the past year? And what do you see as the main challenges for leaders as the profession develops a shared understanding of the new world of work? PH: For me, the number one lesson has been the importance of communication. We have achieved a high level of communication at the Officer Group level and within the Executive Team at Chartered Accountants Ireland. However, many of the challenges faced by businesses worldwide during the pandemic arguably arise partly due to an inability to read the room in an online setting or notice nuances or concerns during a virtual meeting. I don’t think you can overstate the importance of this.  Another big lesson has been the importance of understanding the human side of your colleagues, and not just the professional side. It is vital to make time to get to know your colleagues and support them as we work through the months ahead. It could be something as simple as a 10-minute call with a cup of coffee to chat about anything other than work. Gestures such as this don’t take much effort or time, but the impact on your colleagues could be huge. PON: Flexibility is the word that springs to mind for me, the importance of adapting your leadership style. During this pandemic, I have learnt the importance of understanding the challenges and pressures my colleagues face beyond the office. It is important to reassure people that it’s okay to feel under pressure, to prioritise family and to look after their own wellbeing. Flexibility affords us all the opportunity to prioritise different areas of our lives while still achieving our professional goals, and harnessing this opportunity will be of great importance into the future. SD: I agree wholeheartedly with the point about communication. I have found that people with different personality traits have responded differently to the pandemic and the resultant lockdowns. So for me, the big lesson has been taking time to check in on individuals on your team, particularly those who might be closer to the introversion end of the scale. The extroverts, I have found, have managed during the pandemic as they can get their feelings across in a virtual setting, but that is not the case for all colleagues. If you want to get the best out of people and ultimately avoid losing excellent talent, leaders need to communicate and engage with their people in a meaningful way and on an ongoing basis. In that context, wellness must be a priority for all leaders – including us. As an Officer Group, we will therefore continue to raise awareness about the benefits of wellness initiatives and promote the many valuable webinars and other wellness initiatives hosted by CA Support and the various District Societies. Finally, what is in focus for you as you enter your second term? PH: The focus will be on building supports for members as the vaccine roll-out continues, economies re-open, and the recovery takes hold. There is also an opportunity to support the government and the public sector. We have begun to increase our activity in this space – not least with the recent publication of a position paper on proposed reforms to Irish public sector accounting, launched by Minister Michael McGrath – and that will continue in the year ahead. I would also like to take this opportunity to thank Barry Dempsey and the leadership and staff of Chartered Accountants Ireland for their sterling work over the course of the last year. It was a year of many firsts – the first virtual annual general meeting, the first virtual conferences, the first virtual conferring ceremonies, the first virtual student recruitment campaign, and the first virtual regulatory inspections. The staff have ensured continuity of service for members in the most challenging circumstances while innovating beyond what we thought possible just two years ago. Their efforts are greatly appreciated by the Officer Group, Council, and the membership at large. PON: There will also be a strong sense of continuity in the second term. For example, the Institute has made great strides in advocacy and raising the voice of the profession – and that will continue. The Institute is undoubtedly the best spokesperson for members in terms of the challenges they will face and the supports they will need as we re-emerge from the COVID-19 crisis. We will also seek to play our part in building trust in the profession. This is an emerging area, particularly with regard to developments concerning regulation in the United Kingdom. These developments will directly impact our members in Northern Ireland and possibly have a trailing impact for members elsewhere. It will be important to support our members through that process and we will do so in the first instance by responding in July to the United Kingdom’s consultation on proposed reforms to restore trust in audit and corporate governance. SD: Re-emergence is probably a good word to describe the theme of our second term. There will, of course, be an initial knee-jerk reaction to bring people together and enjoy face-to-face interaction once more, but we must not lose sight of the benefits of the hybrid working model. We need to ensure that we re-emerge from this pandemic in a safe and protected manner, but also in a way that embraces change for the benefit of our colleagues and organisations.

Paul Henry shares his thoughts on the challenges ahead following his re-election as President of Chartered Accountants Ireland for a second successive term. It has been my privilege to serve as President of Chartered Accountants Ireland for the last year, and in a sign of these unusual times, I find myself at the mid-way point of a two-year term of office. I feel incredibly fortunate to represent our almost 30,000-strong membership once again as we move into what I hope will be a brighter time for us all. I want to express my appreciation to my colleagues on Council, and my fellow Officer Group members, for affording me the opportunity to continue to lead the work we started together this time last year. It is a pleasure to be joined by Pat O’Neill and Sinead Donovan in this issue of Accountancy Ireland for a round-table discussion on the issues of importance for our members and students. This will be a year of adaptation as we recover and grow again. It is more crucial than ever that I, as President, my Council colleagues, and our entire organisation channel our collective energies to empower our profession to fulfil its mandate, “for tomorrow, for good”. For society and the economy at large, the last year has been one of worry, isolation, and loss. The public health crisis has persisted for longer than most of us expected, and it has tested us. As human beings, we are not designed to operate at such removes from each other. We are now at an inflexion point, as a combination of prudent public health measures and successful vaccination delivery facilitate reopening and a greater sense of sustained optimism than there has been to date. This time of year is an inflexion point for Chartered Accountants Ireland too – a chance to reflect and plan for the coming months. While it may feel like we have been running to stand still during the pandemic, it is important to reflect on what has been achieved. It was a year of firsts: our first virtual AGM, our first entirely virtual conferences, the virtual completion of examinations, our first virtual conferring ceremonies, and our first virtual student recruitment campaign, to name a few. We have seen a surge in member engagement, which shows that what we are doing is resonating. I thank the Institute’s staff for their commitment to making this possible. I thank our members for their perseverance and resilience in delivering to the high standards that our profession demands in practices, businesses, and the public sector at home and abroad. Our profession has played an instrumental role in supporting businesses in keeping the show on the road in the face of immense challenge. And there is so much still to do. I said last year that recovery from the pandemic would be the challenge of a generation, and all of us will be called on to show even greater leadership and resilience. I look forward to leading the Institute in meeting this challenge. Chartered Accountants Ireland will continue to work on behalf of members this year as your strongest supporter and ceaseless advocate. We will work to promote the profession in which we hold such pride to a new generation. And above all, we will position our shared expertise to contribute to a meaningful and sustainable recovery. I was asked recently as President what career tips I would give to my younger self, and right up there was my advice to build a strong team and keep hold of them. The stronger the team, the better the outcome. None of us can meet the challenges of the future without a collaborative approach, and I look forward to working with you, and for you, this year. Paul Henry is the President of Chartered Accountants Ireland.

Minister Michael McGrath provides an update on the National Recovery & Resilience Plan and the National Development Plan, as Ireland sets about rebuilding its economy with a focus on sustainability and resilience. In the past 15 months, the world has been hit by a massive health and economic crisis, unprecedented in modern times. No country could possibly try to tackle this on its own. By collaborating with international partners, we have been able to harness the best available medical knowledge for diagnosis, treatment, and vaccination against COVID-19. It was clear from early on in the pandemic that, as well as a concerted medical response to the crisis, there would need to be a dedicated economic plan to mitigate the economic impact. In July of last year, EU leaders met against a backdrop of growing turmoil in member states over the impact on people’s livelihoods. At this summit, an agreement was reached on a recovery package to complement the work of national governments.  The National Recovery & Resilience Plan NextGenerationEU The European Union’s €750 billion NextGenerationEU recovery instrument, along with the Union’s trillion-euro budget for the next seven years, is central to the EU’s response to the global pandemic. There is an important difference in the EU’s response to the global pandemic compared to the response to the financial crash. Lessons have been learnt, and the EU moved quickly to reassure member states that we would be supported. NextGenerationEU aims to help repair the immediate economic and social damage brought about by the pandemic and prepare for a post-COVID Europe that is greener, more digital, more resilient, and fit to face the future. The Recovery and Resilience Facility is the largest component of NextGenerationEU, making €672.5 billion available to member states in the form of grants and loans to stimulate economies and improve conditions for citizens. Every crisis is also an opportunity and, as we move on from COVID-19, we must use these funds to make a real difference to our country, reform where it’s needed, and put climate action at the top of our agenda. The Recovery and Resilience Facility and Ireland Ireland is expected to receive €915 million in grants under the facility in 2021 and 2022. A further set of grants is to be allocated in 2023, taking into account economic developments between now and then. To access this funding, Ireland has developed a National Recovery & Resilience Plan for approval by the European Union. The plan sets out the reforms and investments to be supported by the facility. My Department of Public Expenditure & Reform is responsible for preparing this plan, along with the Department of the Taoiseach and the Department of Finance. Other departments have also given their input to ensure a coordinated ‘whole of government’ approach. We are all on the same page when it comes to using these funds wisely and getting the best possible value from this investment. Recovery and Resilience Facility The Recovery and Resilience Facility is structured around six pillars:  Green transition; Digital transformation; Economic cohesion, productivity and competitiveness; Social and territorial cohesion; Health, economic, social and institutional resilience; and Policies for the next generation, as well as seven flagships identified by the Commission. Addressing green and digital transition is a hallmark of the facility. National plans must devote a minimum of 37% of expenditure to climate and 20% to digital investments and reforms. Plans should also seek to address seven flagship areas identified for reforms and investments: Clean technologies and the acceleration of development and use of renewables; Energy efficiency of public and private buildings; Sustainable, accessible, and smart transport; Roll-out of rapid broadband services, including fibre and 5G networks; Digitalisation of public administration; Increase in European industrial data cloud capacities and the development of powerful and sustainable processors; and Adaptation of education systems to support digital skills and educational and vocational training. Member states are required to embed the measures they plan to take in their national budgetary processes. The plans must also strike a balance between reforms and investments and seek to address challenges identified in the relevant Country Specific Recommendations. Ireland’s Plan and Projects Ireland’s Plan has a particular focus on green and digital transition, as well as supporting economic recovery and job creation. It is aligned with the National Economic Recovery Plan and has been developed alongside the ongoing review of the National Development Plan. Priorities for the National Economic Recovery Plan aligned with the National Recovery & Resilience Plan include climate actions and reforms; digital delivery of public services; social and economic reforms; digital transformation and adoption of artificial intelligence (AI) technologies by SMEs; and research and innovation. The National Recovery & Resilience Plan includes a suite of projects focused on: Advancing the green transition; Accelerating and expanding digital reforms and transformation; and Social and economic recovery and job creation. Several large-scale reforms and investments are included to maximise the impact of the funds provided. Next steps National plans must meet stringent EU requirements set out in the Recovery and Resilience Facility regulation before they receive approval from the European Commission and the Council of Ministers. Intensive negotiations with the European Commission have been underway in recent months, and Ireland’s plan will be considered carefully for two months before it is approved. The facility is a performance-based instrument, which means that demanding milestones and targets must be met before funding can be drawn down – and this is as it should be. As well as milestones and targets, requirements include green and digital expenditure tagging, detailed costings, an appropriate control and audit framework, and compliance with the ‘do no significant harm’ principle. Plans should demonstrate a lasting impact on member states, whether by strengthening job creation and social resilience, whether the expenditure is reasonable compared with the expected return, and whether suitable control mechanisms are in place to prevent corruption, fraud, and conflict of interest.   European solidarity The lifetime of this Government will see Ireland mark 50 years of EU membership. Our membership has played an immense role in our social, economic, and political development. The values of the European Union are our values. That is why the Programme for Government sets out a vision of Ireland at the heart of Europe and global citizenship. During the five decades, we have benefited from the solidarity that comes with membership. We have seen this over the last year as we responded to the global pandemic and in the previous five years as we navigated the challenges posed by Brexit. In the Recovery and Resilience Facility, we see further evidence of that solidarity. In the coming weeks and months, the National Recovery & Resilience Plan, along with the National Economic Recovery Plan and the National Development Plan, will enable us to move beyond the pandemic to rebuild the economy and improve our country for all. We have been through a difficult period, and the economic and social scars cannot be underestimated or dismissed. However, decisions at the EU level have shown that we really are all in this together. Member states will be supported in finding their way forward, and we will emerge as a stronger and more resilient EU. The National Development Plan Creating our shared future Like accountants, ministers and civil servants are analytical thinkers, carefully scrutinising the driving forces of change, the prevailing macro-economic factors, and the views of the people we serve. We depend on evidence and numbers, and this analysis is vital as we craft the revised National Development Plan, which is due for publication later this year. The National Development Plan is one half of Project Ireland 2040. Launched in 2018, it sets out the investment priorities that underpin the implementation of the National Planning Framework. When this Government took office last July, we set about tackling the many challenges we face as a country, including the COVID-19 pandemic, Brexit, housing, and an uncertain political landscape. Our country is at a critical stage in its development, and there has been much discussion about an ‘infrastructure-led recovery’ across the globe. We know that we need to create opportunities to rebuild a better Ireland for all, as without substantial reform, we risk repeating the mistakes of the past. Investment decisions must support broader economic, environmental, and social outcomes. Our national recovery requires a holistic approach involving the contribution of both urban and rural areas. It is my view that we should take the opportunity to create the foundations for long-term, sustained economic growth. That is why, on taking office last July, I asked my officials to bring forward the mooted review of the National Development Plan. Economic context Our population is set to grow by one million people by 2040. The infrastructure implications of that alone are enormous. We must ensure we have thriving and sustainable communities for future generations. Ireland’s economy was the only one to grow in the EU last year. The European Commission expects Irish GDP to grow by 3.4% in 2021 and marginally faster in 2022. These are solid numbers considering the global challenges we’re facing. The impact of COVID-19 on our working lives has been seismic. We have undertaken the greatest global home-working experiment ever, moving it from the fringes to the mainstream. The Government’s National Remote Work Strategy helps to make remote working a permanent option in Ireland. It plans to give employees a legal right to request remote working and to introduce a code of practice on the right to disconnect. The Strategy commits to investment in remote work hubs and the development of the national broadband plan. The Programme for Government characterises the climate emergency as the single greatest challenge facing humanity. We are the first generation to truly feel the effects of climate change, and we may be the last to have an opportunity to reverse it. This is why we have to act now. In the public consultation we undertook, there was near consensus that the revised National Development Plan will have to be viewed through a climate lens. Public Spending Code We need to ensure that the right policy settings are in place. Rigorous cost-benefit analysis is essential, particularly in the current economic climate. As part of the ongoing reform of Ireland’s public investment management system, the Department of Public Expenditure & Reform has reviewed and updated the Public Spending Code. The review was informed by an extensive consultation process involving engagement with public officials and an examination of international best practice. Importantly, the Public Spending Code also incorporates learnings from various capital projects in Ireland, including the National Children’s Hospital. The update to the Public Spending Code specifically strengthens the existing guidance to better reflect the realities of project delivery with a particular focus on financial appraisal, cost estimation, and risk management. The updated Public Spending Code: Supports public bodies in delivering greater value for money; Provides greater clarity on roles and responsibilities; Revises the project life-cycle to reflect the realities of project delivery; Strengthens guidance; and Increases transparency through the publication of business cases and evaluation reports. This update followed an extensive consultation process, and as a result, there is a stronger focus on cost estimation and professional project management. We have also learned from international experience when it comes to managing mega-projects over €100 million. There are at least 40 projects in this category in the National Development Plan. Later this year, we will have a new governance and assurance process for major projects. This will involve two external reviews of major projects at key points in the project life-cycle by independent experts in infrastructure delivery. I have asked my ministerial colleagues to rigorously assess the costs of existing planned projects to ensure that those costs are up-to-date and realistic. I am also developing a new external review process for all major projects worth over €100 million. The process In early April, I published the Phase 1 Report on the Review of the National Development Plan. The work carried out as part of Phase 1 included:  Macro-economic analysis; Public capital expenditure and infrastructure demand analyses; Consideration of climate action, housing, and planning; and Alignment with the National Planning Framework. The Phase 1 report also includes detail on the successful public consultation process, Review to Renew, which generated 572 submissions. Phase 2 will involve detailed engagement with colleague departments to agree on capital allocations for the coming period and priority programmes for inclusion in the new National Development Plan. Combined, this is a solid evidence base that will allow us, as a Government, to make informed decisions and bring forward a new National Development Plan in the summer of 2021. Michael McGrath is Minister for Public Expenditure & Reform, a TD for Cork South Central, and a Fellow of Chartered Accountants Ireland.

Dee France, of CA Support, writes: CA Support is a registered charity that is funded by donations from members of the Institute, and exists solely for the purpose of providing emotional, practical, and financial support to Chartered Accountants, students, and their families, for life. Simply put, we are here to help if things go wrong. Through our mental health, wellbeing, and advisory services, we ensure that nobody encountering unexpected difficulties is left behind. During the COVID pandemic, we have seen those members and students contacting us for help increase by over 50%. During 2021, these numbers are rising further. From a member survey conducted in June 2020, we asked members if their mental health had been negatively impacted since the beginning of COVID. The response was that this was the case for at least 50%. In conversations we have had with members in practice, many have told us that they find the current circumstances extremely stressful and pressurised. Running a business can be isolating at the best of times, and that isolation has been exacerbated by the impact of the COVID crisis. There are intense pressures arising from meeting deadlines, managing staff and the impact on financial security. The good news is CA Support can provide tangible assistance to any member or student, or their families, who are experiencing any type of hardship at any stage of their career. We have members who have reached out to us due to bereavement, job loss, critical illness, or marital breakdown. Others have reached out because their mental health is suffering, and so need to avail of our professional counselling services. Thankfully, the majority of these members managed to turn a corner and benefit greatly from the help they received, as demonstrated in some of their feedback: “It is a shame more members and students do not avail of this amazing service. It has been such a positive experience for me. I have told so many about it and hope I can help to spread the word in 2021 on your behalf.” – Member who was made redundant. “It has been a source of great consolation to me and my wife to know that there was an organisation like CA Support in existence, funded by charitable members, who care about those who didn’t set the business world on fire and needed help.” – Retired member “I have gone back to work part-time. At long last I have my life in order. I wish to thank CA Support for their help and kindness over the last few years. You have made a great difference to my life.” - Member (separated) who received emergency financial assistance. It is heartening to see that these members with their own unique set of challenges have benefitted greatly from the assistance they received from CA Support. We know it is not always an easy decision to reach out for help, but rest assured all contact with our team is completely confidential. We understand that the stigma surrounding the issue of mental ill health still exists and some members may feel it is a step too far to admit that they, or someone close to them, has a problem. Please be assured that you will be treated with kindness and understanding, and will be offered all the support you need to get back on your feet. You may be interested in checking out our latest webinar, Ending the Stigma of Mental Health where we listened to mental health advocate, Barbara Louise Brennan from Ireland’s charity, See Change, address some of the misconceptions and misunderstandings that exist in our society today. She tells us that we all have mental health, just as we have physical health, but very often our perception of mental health is a negative one. She takes us through some practical ways to normalise conversations around mental health and take action to seek help for both ourselves, and for our loved ones. You can view the webinar here. You can find out about all our services and supports available from our CA Support pages. The CA Support team are here to help and are only a call or email away: CA Support team mobile: (353) 86 024 3294 or email: casupport@charteredaccountants.ie.

Barrie O’Connell considers how Ireland can achieve continued success in international financial services after three decades of momentous growth. As a semi-senior auditing investments and subscriptions in the offices of Chemical Bank on Lower Abbey Street in the late 1990s, I knew little of the influence international financial services (IFS) would have on my career as a Chartered Accountant. Ireland has built a thriving IFS industry over the last three decades. This success can be measured using several metrics, some of which are outlined in Table 1. So, what are the factors behind this success? In my view, Ireland’s strategic approach and talent have been the two key enablers. Chartered Accountants have played – and will continue to play – a key role when it comes to talent. The ‘Ireland for Finance’ strategy In 2019, the Government of Ireland launched the Ireland for Finance 2025 strategy. The strategy was developed by the Department of Finance, with input from a range of stakeholders, and is part of the current Programme for Government. It contains four pillars: Operating environment; Technology and innovation; Talent; and Communications and promotion. The Ireland for Finance 2025 strategy is aligned with other key Government strategies, including the National Development Plan and the National Digital Strategy. A refresh of the strategy will likely be undertaken after the COVID-19 pandemic to account for the permanent impact on the future of work, the changing operating environment, and the intense competition from other IFS investment locations. Each year, the Department of Finance also publishes an action plan and an update on actions. This allows each action to be measured and provides accountability, as each action has an owner. The IFS team within the Department of Finance plays a significant role in supporting the strategy’s implementation. There is also a dedicated Minister of State for IFS at the Department of Finance, which ensures continuing focus on the sector. Coincidentally, the current Minister, Sean Fleming TD, is a Chartered Accountant. Operating environment Ireland has enjoyed great success as an IFS location for a long time. With new entrants relocating here due to Brexit, there is the prospect of more to come. This will remain the case while there is uncertainty around UK firms’ ability to achieve financial services equivalence and, thus, access to EU markets post-Brexit. However, the environment for IFS is increasingly competitive. Industry participants continually face pressure to optimise their business by delivering new and innovative products and exploiting process and location efficiencies. They must deliver on these issues while serving their customers’ needs and ensuring the global financial system’s continued stability. The industry is more technology-intensive than ever, and artificial intelligence (AI) and automation present both opportunities and challenges for Ireland. We must continue to position ourselves as a location that is open to providing an innovative, supportive, and dynamic environment for companies that seek to leverage our expertise and history in technology and financial services. After COVID-19, other countries will redouble their efforts to attract investment. As IFS is a mobile sector, Ireland must be agile and adapt quickly to the new environment. The IFS sector has been remarkably resilient over the last year, and I am impressed by how the sector adapted to remote working and continued to deliver for customers. This resilience is a key differentiator, and the collective ability to solve issues gives Ireland credibility and trust in a global marketplace – something that is noted internationally. Track record The IDA and Enterprise Ireland have both contributed to the development of the country’s IFS industry. I am continually impressed by the IDA’s work with overseas companies and Enterprise Ireland’s work to create opportunities for indigenous companies to operate successfully from Ireland. Indeed, these organisations are the envy of many other countries globally. Irish Funds is another excellent example. It works relentlessly at an international level to promote Ireland as a funds location, and the quality of the content at its events is compelling and demonstrates some of the best qualities of ‘Team Ireland’. Meanwhile, the European Financial Forum, usually hosted in Dublin Castle, was hosted virtually this year. It is another superb showcase of what Ireland offers in IFS to companies operating globally and is supported by an effective regulatory environment with a fully independent Financial Services Regulator. The development of the “IFS Ireland” brand has been a crucial first step in building an integrated offering across different sectors. We must now market Ireland with consistency and in new and innovative ways.  The secret sauce Ireland’s key asset is its people and talent. Ireland has a well-educated, highly-skilled, flexible, internationally diverse and multilingual workforce. Our demographics are favourable, with 33% of the population less than 25 years old and over 50% of those between 30-34 holding a third-level qualification. Chartered Accountants’ skills and attributes are a good fit for this sector, and I am aware of so many Chartered Accountants Ireland members who have cultivated successful careers in IFS – not just in Dublin, but throughout Ireland. The executive and senior management teams in IFS in Ireland, many of them Chartered Accountants, are a vital ingredient in our competitive advantage. They advocate with head office, look to develop and grow the offering based in Ireland, and are prepared to manage global operations from Ireland – and often exceed expectations when they do. Many have very senior global roles in large IFS organisations, and we don’t always acknowledge them and their relentless focus on expanding their organisation’s footprint in Ireland enough. For example, the recently announced acquisition of GECAS by AerCap, headquartered in Dublin, is a fantastic transaction that demonstrates Ireland’s position as a world leader in aviation finance. Caution needed Now is the time for Ireland to redouble its efforts. Some commentators suggest that the future of work will alter the relationship between talent and location, but I am inclined to challenge this hypothesis. In my view, where the executive and senior management teams are based will continue to be a key consideration for an organisation’s location. With accelerating disruption and digital transformation impacting the IFS sector, Ireland must be aware and adapt accordingly. In the coming years, protecting existing jobs may well be as important as growing the number of those employed in the sector. Ireland must therefore invest in education and training to ensure that workers stay relevant and productive and harness the strengths of Ireland’s technology sector to position Ireland as a leader in technology-based financial services and platform development. Chartered Accountants Ireland’s FAE elective in Financial Services is a welcome development in this regard. Action Plan 2021 The IFS Action Plan 2021, which is available to download at www.gov.ie, outlines several priorities in this regard, including sustainable finance and fintech. These areas have huge growth potential and present an opportunity for Ireland to take a leadership position globally. Sustainable finance and environmental, social and governance (ESG) criteria are strategically important to all companies. It is fitting that the Minister highlighted both as critical areas of focus for 2021 and beyond. Ireland’s recently enacted Investment Limited Partnership (ILP) legislation was an objective in the action plan for several years and has the potential to deliver significant growth in the private equity area. The Central Bank of Ireland also issued a stakeholder engagement consultation in recent weeks, and this will be a key focus for the 2021 action plan. Cause for optimism IFS is a vital element of Ireland’s overall economic strategy. Like all strategies, the strategy for IFS must be continually reviewed and adapted as the world evolves. Given our talent, flexibility, and drive, there is much cause for optimism while resisting complacency. It is incredible to see what started in the IFSC now present in every corner of Ireland, from Killorglin to Letterkenny. Yes, IFS in Ireland will need to change, adapt and continue to improve. But for newly qualified and experienced Chartered Accountants alike, the opportunities in IFS are almost limitless. Go and explore them for yourself. Barrie O’Connell is Partner in KPMG and Chartered Accountants Ireland’s representative on the Ireland for Finance Strategy 2025 Industry Advisory Group.  

The coronavirus pandemic accelerated the journey towards the fourth industrial revolution and new threats emerged in the process. Business leaders must therefore think about cybersecurity in a new way, writes Dani Michaux. Over the past year, we have seen significant geopolitical changes driven by the impact of COVID-19, forcing organisations to strengthen their resilience. The realisation has also dawned that the world as we once knew it has changed. Amid all of this, I see a new and very different operating model emerging for business. That new operating model is based on various restructuring activities, accelerating digitalisation initiatives, alternative partnership models, and a sharper focus on core activities. As organisations pivot, it is essential to reflect and consider the risks that may emerge as part of these organisational changes. What do the changes mean for the organisation, its supply chain partners and players, connected industry, government, and broader society? One prominent challenge is the need to safeguard the new digital ecosystem, which underpins this transformation, from cyberattack and information infrastructure breakdown. The world kept turning in 2020 During the early part of 2020, we saw an increased number of CEO identity frauds, payment frauds, ransomware attacks, and crude attacks on insecure cloud services. As the year grew old, we saw more complex attacks targeting supply chains, major cloud environments, remote working applications, security product providers, and even critical infrastructure services. This time last year, we claimed that cybersecurity is key to achieving the fourth industrial revolution. COVID-19 has accelerated that revolution and the use of digital and cloud technologies in both the public and private sectors. Those technologies are now fundamental to our society. Sadly, the pandemic has also shown that organised crime is opportunistic and ruthless in exploiting events to gain financial advantage. Thus, we witnessed a steady stream of high-profile cyberattacks on private enterprise, government, and social media platforms during the year. It is nevertheless encouraging to observe the pace at which organisations rolled out robust digital infrastructure during difficult times and the collaboration between business, technology, and security teams to safeguard these rapidly deployed services. It illustrates how these often-siloed parties can work together effectively to introduce secure innovation at market speed. COVID-19 has propelled Chief Information Security Officers (CISO) into a new dimension. Suddenly, they must manage thousands of home-working sites, personal devices, and a rapid shift to the cloud. The CISO has moved from securing corporate IT boundaries to a broader view of enterprise security. The timescale for many cloud migration projects has collapsed from years to months in the race to meet fast-changing business needs. Hyperscale cloud providers are increasingly dominant and intently focused on security. To succeed in the future, security teams must: Reskill employees to reflect the split of responsibilities between enterprise and cloud-service providers; Adapt to agile development methods and new digital channels; and Enact these innovations while cloud security skills attract a premium salary as the global job market competes for much-needed talent in 2021. The rise of supply chain attacks Political and business leaders have become alert to the global interdependence of many critical functions and the nature of risk that cross-border supply chains have. The pandemic made these murky operational and systemic risks real and gave people pause for thought. Supply chain attacks are not new. However, in the new highly digitalised and interconnected world, they are becoming more prominent. Frequent attacks raise concerns about organisations’ ability to remain resilient. We have seen several prominent cases over the past few years. Examples include the Target cybersecurity attack, where a network intrusion may have exposed approximately 40 million debit and credit card accounts; a global cyber-espionage campaign known as ‘Operation Cloud Hopper’, which formed part of a shift to target managed service providers; a worldwide campaign against telecommunications providers called ‘Operation Soft Cell’; and the latest cyberattack on Solarwinds, a global provider of network management solutions. A common theme in these attacks is the presence of third-party providers of hardware, services, or software. In complex infrastructure, set-ups that include rapid pivoting to new environments and dependencies on third-party suppliers are both common and intimate. Third-party providers are targeted with the ultimate aim of reaching a bigger mark. The methods and duration of the compromise vary, but there are some common patterns. These include exploiting speed and rapid deployment challenges and looking for exposures in security controls as firms shift rapidly to new technology. Of course, smaller organisations within the supply chain may also attract greater attention, based on the assumption of reduced sophistication and scale of security operations. Lessons can be learned from sectors like oil and gas, where human safety is at the top of executive agendas and assumptions are challenged continuously. It starts from the proposition that you cannot assume that anything will work in the event of an explosion. For example, a company might have a procedure to pre-book hospital beds for casualties, but what happens if the hospital doesn’t have a burns unit? What happens if the ambulances can’t get to the site of the explosion? These things have to be planned for in advance, requiring creative paranoia and a certain mindset. That’s the type of culture of resilience that should be in place in all organisations. It is a question of overall operational resilience, not just the resilience of IT systems and security. In this complex world, organisations should address the following practical questions: 1. Understand the risks and dependencies in the supply chain. Here are some questions to ask: What are the threats and exposures associated with third-party access to your environments, services, and products? Do you have contractual agreements in place with clear service level agreements concerning expectations around cybersecurity? Are you in a position to monitor those, including supplier activities? Do you monitor exposures and cyber risks associated with the supply chain and discuss these issues as part of an ongoing agenda within the organisation’s management and risk committees? 2. Understand the full extent of the supply chain within the existing environment and any changes arising from new digitalisation initiatives. Here are some questions to ask: How has the profile changed based on the rapid digitisation, restructuring and transformation initiatives in place? Do you have a view further down the supply chain (to fourth- and fifth-party providers, for example)? 3. Make arrangements to respond to supply chain cyberattacks collectively. Here are some questions to ask: Are there any mechanisms in place? Have you exercised these? Has the organisation included lessons learned from previous attacks? How has the organisation adapted based on the lessons learned from incidents? Are any other improvements required? Stepping into the future As we look to the future of highly digitalised and scalable environments, resilience will be paramount and non-negotiable. Organisational resilience will rely heavily on the stability of the end-to-end supply chain. However, it will also require a new approach to data security. The hunt will be on for cybersecurity orchestration opportunities, robotic process automation around manual security processes, more integration with key IT workflows, and new managed service and delivery models. Third-party security may also need new models for more dynamic risk management and scoring, including better tracking of supply chain stresses. Of course, assessments such as SOC 2 and ISAE 3402 will play a growing role as firms seek to provide evidence once to satisfy myriad client questions about cybersecurity. However, we can also expect to see the rise of ‘utility models’ where intermediary organisations aggregate client assurance requirements to undertake a one-size-almost-fits-all assessment of suppliers’ cybersecurity. This is already happening in the UK with the support of financial regulators. Over the last few years, firms have also sprung up offering risk scoring services based on a scan of a firm’s internet-facing services. They also monitor for data disclosures in the shady corners of the internet and alert customers to a potential supplier problem that they may not be aware of or are yet to disclose. Large companies will often ask these risk-scoring services to monitor hundreds of suppliers. As the outsourcing of non-core business services accelerates, it is worth asking: do you pay sufficient attention to your dependency on third-party actors who are now integral to your security and resilience as a business? As we look to the future, organisations will need to move on from thinking exclusively about enterprise firewalls, anti-virus software, and patching policies. Instead, they will need to consider approaches to security. This begins with the premise that a company’s success is based upon its reputation, which is ultimately a manifestation of the trust others have in its offerings. This mindset leads companies to embed security into products and services, but it also focuses attention on protecting customers, clients, and those increasingly important supply chain partners. It emphasises stewardship of the trust they place in you when they share their most sensitive data or show their willingness to become dependent on you. No organisation is an island, and all of us are part of an increasingly hyperconnected world. In that world, trust in supply chains and ecosystem partnerships matters more than ever. Dani Michaux is Head of Cybersecurity at KPMG Ireland.

Neil Hughes outlines the survival options for small- and medium-sized businesses as the ‘next normal’ approaches. In general, 2018 and 2019 were good years for Irish business. Many companies entered 2020 with stronger balance sheets, relatively low debt levels, aggressive growth targets, and optimism – particularly in the small- and medium-sized enterprise (SME) sector. By Q2 2020, however, firefighting due to COVID-19 restrictions quickly soaked up all available management time and resources. Growth strategies were shelved, and survival was prioritised. Government supports were immediately made available to companies severely affected by the pandemic. Figures released by Revenue in February 2021 show that the State paid out a total of €9.3 billion in 2020 between the Pandemic Unemployment Payment (€5.1 billion), Temporary Wage Subsidy Scheme (€2.8 billion) and the Employment Wage Subsidy Scheme (€1.4 billion). Seventy thousand companies have availed of the Revenue Commissioners’ Debt Warehousing Scheme, at a total cost of around €1.9 billion. These supports, along with the forbearance provided by financial institutions in Ireland, have helped prevent a tsunami of corporate insolvencies. The concern, however, is if post-pandemic those companies that ultimately need help the most will not reach out and avail of the supports and processes available. Overcoming the stigma It is regrettable that, historically at least, the use of formal corporate insolvency mechanisms to restructure struggling businesses has been viewed quite negatively by the Irish business community. The inference is that such businesses were somehow mismanaged when, in reality, this was often not the case. Companies can fall into financial difficulty for various reasons. Factors outside the control of company directors can necessitate a formal restructure rather than the terminal alternative of liquidation. Now, in the middle of a pandemic, a previously successful business operator, through no fault of their own, can find themselves saddled with an unsustainable level of debt and risk becoming insolvent. While government support measures were necessary to prevent widespread corporate failures and potential social unrest, for many companies, these actions may have simply delayed the inevitable and kicked the can further down the road. In most corporate insolvencies, there is an expected level of pressure for money that the company does not have, which precipitates a formal restructure. This pressure has been temporarily released, but the creditor strain will inevitably build again when trading resumes. ‘Zombie’ companies Low insolvency numbers for 2020 are therefore misleading. There is anecdotal evidence to suggest that several companies have ceased trading, have no intention of reopening and, in some instances, have handed the keys of their premises back to landlords. However, these ‘zombie’ companies are not included in the insolvency statistics, as they continue to avail of government supports and will be wound up whenever the supports end. While helpful, the subsidies and supports do not cover the entire running costs of a business, and many companies continue to rack up debt as their doors remain closed. These debts may seem insurmountable, but there is hope. The Great Recession vs the COVID-19 crisis This current recession is in stark contrast to the ‘Great Recession’ that resulted from the banking crisis of 2008. Back then, there was a systemic lack of liquidity in the market due to the collapse of Ireland’s banking sector, which left SMEs with little or no access to funding. This time, there are several re-capitalisation options with banks (including the new challenger banks) in a position to provide funding, especially through the Strategic Banking Corporation of Ireland (SBCI) Loan Scheme. Many private equity funds are also willing and ready to invest in Irish businesses. After the pandemic All the while, the Government can borrow at negative interest rates to stimulate growth and recovery. With the vaccine roll-out, we are starting to see the light at the end of the tunnel. This begs the question: what will happen when the pandemic is over? There are several key points to note: Consumer behaviour: it is reasonable to assume that a large portion of the population will revert to normal. This could generate a domestic economy similar to the rejuvenation that followed the Spanish Flu pandemic of 1918 and the end of the First World War. There is certainly pent-up demand and savings (deposits held in Irish financial institutions were at an all-time high of €124 billion in late 2020). Unfortunately, a portion of society will change their consumer habits forever due to COVID-19, which will have a detrimental effect on businesses that find themselves on the wrong side of history and unable to survive the recovery. Government action: how the Government reacts will have lasting repercussions. Difficult and unpopular decisions are likely required to pay for the ever-rising cost of the pandemic and its restrictions. Such choices may result in an increase in direct and/or indirect taxes, with less disposable income circulating in the economy. The UK Government has already made moves in this direction with its 2021 budget. The Revenue Commissioners: Revenue’s intended course of action is currently unclear in relation to clawing back the €1.9 billion of tax that has been warehoused or how aggressively it will pursue Irish companies for current tax debt after the pandemic is over. Early indicators are that Revenue will revert to a business-as-usual strategy sooner rather than later. Banks and other financial lenders: the attitude of Irish banks and financial institutions to non-performing loans remains to be seen. Banks have been accommodating to date and worked with, rather than against, borrowers – a criticism levelled against them in the wake of the 2008 banking collapse. Personal guarantees provided by directors to financial institutions to acquire corporate debt, particularly in the SME sector, will have a significant bearing on successful corporate restructuring options. The attitude of landlords: landlords in Ireland are a broad church, ranging from those with small, family-operated single units to large, multi-unit institutional landlords or pension funds. Landlord-tenant collaboration is essential for stable retail and hospitality sectors, and in the main, rent deferrals were a foregone conclusion during the various lockdown stages of the pandemic. However, these rent deferrals still have to be dealt with. The attitude of general trade creditors: in certain instances, smaller trade creditors in terms of value have been the most aggressive in debt collection and putting pressure on businesses to repay debts as soon as their doors reopen. Companies with healthy balance sheets and those that managed their cash flow prudently will be the ones to come out the other side of this pandemic when the government supports subside. Businesses will need time to: Assess the post-pandemic consumer demand for their products and services;  Assess their reasonable future cash flow projections; Agree on payment arrangements for old and new debt; and Make an honest assessment of whether they will be able to trade their way through the recovery phase. For those who have been worst hit, however, all is not lost. Ireland has some of the most robust restructuring mechanisms in the world, with low barriers to entry and very high success rates. The fallout can be mitigated if company directors take appropriate steps. Restructuring options When it comes to successful restructuring, being proactive remains the key advice from insolvency professionals. Too often, businesses sleepwalk into a crisis. Options narrow if there has been a consistent and pronounced erosion of the balance sheet. Those who act fast and engage with experts have the best chance of survival. 1. Examinership There are various restructuring options available, but examinership is currently most suitable for rescuing insolvent SMEs. The overarching purpose of examinership is to save otherwise viable enterprises from closure, thereby saving employees’ jobs. In 2019, liquidations accounted for 70% of the total number of corporate insolvencies in Ireland, and examinership only accounted for 2% of the total. It is plain that a higher portion of those liquidations could have been prevented, jobs saved, and value preserved if an alternative restructuring option like examinership had been taken. There are only two statutory criteria for a company to be suitable for examinership: 1. It must be either balance sheet insolvent or cash flow insolvent. It cannot pay debts as and when they fall due; and It must have a reasonable prospect of survival.  The rationale for examinership in a post-pandemic environment is therefore clear. Companies saddled with debt will likely meet the insolvency requirement, and historically profitable companies that have become insolvent due to the closures associated with the pandemic will pass the ‘reasonable prospect of survival’ test. Once appointed, the examiner must formulate a scheme of arrangement, which is typically facilitated by new investment or fresh borrowings. The scheme will usually lead to creditors being compromised and the company emerging from the process solvent and trading as normal. 2. The Summary Rescue Process One of the main criticisms levelled at examinership is the perceived high level of legal costs required to bring a company successfully through the process. To address this perceived issue, in July 2020, An Tánaiste, Leo Varadkar TD, wrote to the Company Law Review Group (CLRG) requesting that it examine the issue of rescue for small companies and make recommendations as to how such a process might be designed. The CLRG’s reports in October 2020 recommended the ‘Summary Rescue Process’. It would utilise the key aspects of the examinership process and be tailor-made for restructuring small and micro companies (fulfilling two of the following three criteria: annual turnover of up to €12 million, a balance sheet of up to €6 million, and less than 50 employees). Such companies constitute 98% of Ireland’s corporates and employ in the region of 788,000 people. A public consultation process is now underway to finetune the legislation. Here is what we know so far about the Summary Rescue Process: It will be commenced by director resolution rather than court application. It will be shorter than examinership (50-70 days has been suggested). A registered insolvency practitioner will oversee the process. Cross-class cramdown of debts will be possible, which binds creditors to a restructuring plan once it is considered fair and equitable. It will not be necessary to approach the court for approval unless there are specific creditor objections. Safeguards will be put in place to guard against irresponsible and dishonest director behaviour. A proposed rescue plan and scheme will be presented to the company’s creditors, who will vote on the resolutions. A simple majority will be required to approve the scheme. The Summary Rescue Process will be a huge step forward. The process of court liquidation has been systematically removed from the court system in recent years in favour of voluntary liquidations. This new rescue process will bring a similar approach to formal restructuring, allowing SMEs greater access to a low-cost restructuring option akin to a voluntary examinership. It will give more hope to companies adversely affected financially by the pandemic that options exist for their survival. Neil Hughes FCA is Managing Partner at Baker Tilly in Ireland and author of A Practical Guide to Examinership, published by Chartered Accountants Ireland.

Seven Chartered Accountants reflect on their careers overseas and describe life in different countries as the COVID-19 pandemic continues. Fiona Walsh  Audit Manager at KPMG  Sydney, Australia Time abroad: three years In June 2018, I was given the opportunity to move to Sydney as part of KPMG’s global mobility programme. This was a really exciting opportunity, both personally and professionally, so I packed my bags and moved half-way across the world. Moving with the same company and in the same role made the move a lot easier as, along with starting a new job, you are trying to familiarise yourself with a new city, find a place to live, and settle in. The first few months are a really exciting time but while Australia is quite similar to Ireland culturally, it did take longer to settle in than I had imagined. When the pandemic hit, it changed life as we knew it in Sydney. The switch to a virtual world was sudden. At first, there was a novelty attached to it. We quickly had to adapt as most Australian companies are June year-ends, so busy season was fast approaching. However, in Sydney, we returned to the office relatively quickly as COVID-19 numbers decreased. We have been working from both the office and home for several months now. One positive outcome from the pandemic is that we now have a lot more work flexibility, but I don’t believe a full-time work-from-home model is sustainable in the long-term. We found the transition back to the office easier than expected, with a renewed value on face-to-face interactions with teams and clients. In Australia, we have been very lucky with the impact of COVID-19 restrictions compared to Ireland, but the toughest part is that, for the Irish community abroad, we don’t know when we can next jump on a flight to visit family and friends. I got engaged to my fiancé in October (also an Irish Chartered Accountant), so we are very excited to get home to celebrate. The uncertainty of the pandemic makes a full-time move home more difficult to contemplate in the short-term. Claire Iball Finance Director at Intel Portland, Oregon, USA Time abroad: 15 years The worst part of being away from home during the pandemic is not being able to physically see and hug my family in Ireland, though FaceTime and WhatsApp have eased the distance. When I took this role in the US, I thought I would stay for two to three years. I didn’t know what I was getting into. I am super independent, but the first few months without friends and family were difficult. That said, I don’t think I would do anything differently. You can only grow when challenged by new situations, people, and environments. It tested my ability to adapt and respond to change and differences. Working for a US company where the majority of business partners are US-based means more traditional work hours. In contrast, working for a US company while living in Ireland meant working later into the evening to collaborate with US colleagues. And while I would love the opportunity to work in Ireland and live closer to family, I have also started my own family here and have a different lifestyle and new friendships. I think working from home during the pandemic has opened up job opportunities and does not require experts to be in certain locations. As the end of pandemic is in sight, we will reflect and adapt to the new world and way of working.  I think there are great personal development opportunities in working abroad. Anyone thinking of doing so should go for it. If you want to experience a new country, culture, and learn new ways of working, that’s the best way to go about it. It’s always better to regret something you’ve done rather than something you haven’t done. S. Colin Neill Board member New Jersey, USA Time abroad: 45 years On graduation from Trinity, I joined Arthur Andersen in Dublin. I had always heard that being a Chartered Accountant would provide a passport to travel the world, and indeed it proved to be.  My wanderlust took me to New York after qualification at a time when it was relatively unusual for Chartered Accountants to make such a move. I eventually got involved in the formation of the Association of Chartered Accountants in the US (ACAUS), which sought to enhance and promote the Chartered brand. The effort was extremely successful – ACAUS celebrated 40 years last year and has achieved mutual recognition of qualifications with many US states. My life would not have turned out the way it did without the solid business foundation of the Chartered Accountant training and qualification. I am now semi-retired, but I remain active on several boards. The challenge for me has been to master and embrace current technology, which I have luckily done. Some of the boards I serve on support the charitable fundraising activities of hospitals, both in the US and Ireland. The pandemic has made holding live fundraising events impossible, and that has had severe consequences for the hospitals. On the other hand, the commercial entities whose boards on which I serve are thriving. Unfortunately, one is an historical cemetery and crematory – business is booming. While I travel back to Ireland several times year – mostly to play golf – leaving was a very good move for me. The only time myself and my Irish friends ever questioned moving back to Ireland was during the rise of the Celtic Tiger. The thought did not last long, however. Gavin Fitzpatrick Director of Financial Accounting and Advisory Services at Grant Thornton San Francisco, California, USA  Time abroad: 20 months The pandemic has definitely made it more challenging to achieve the objectives I set for myself when first taking this role. Meeting existing clients to further develop relationships has been more difficult in a remote environment. Building rapport with new teams, whether internal or external, has required additional effort. Add to this the personal challenges of keeping a young family in good spirits during lockdown in a foreign country. This role, and the last 12 months, have taught me the importance being agile, staying positive, and taking stock regularly to challenge myself to ensure I am putting effort into relevant tasks. The way I support existing clients has changed, but they still get value from a local contact who can help them navigate a world of constant change. Despite a year of home-schooling and travel restrictions, my family have managed to make the most of this adventure, creating memories, friendships, and achieving many personal goals along the way.  Despite the challenges, this move has been a success, both personally and professionally. If I had the opportunity to do it all over again, I wouldn’t do anything differently. We try to make the best decisions we can with the information we have at a point in time. When the outlook changes, no matter how radically, we adapt. Roles such as mine are important for our business and the development of our teams. While planning for similar roles in the future will no doubt mean considering additional matters, I would encourage anyone to grab these opportunities wherever possible. Fearghal O’Riordan Vice President at Aon Cayman Islands Time abroad: 11 years I’m missing Ireland. It has been 18 months since I was home. Not being able to see family, friends, neighbours and Galway has been a challenge. I am a keen horseracing fan, so I miss being able to visit stables and see the horses. But, I do enjoy it here, and I guess I am settled now. This is home. I met my wife here on my first visit and we have been together 19 years, and the Cayman Islands people have been very welcoming and good to me. It’s a very attractive place to live. I love the mix of cultures here in the Caribbean. We have over 100 nationalities in a population of 65,000. You meet lots of wonderful people with great stories of life in their homelands. We are fortunate to have a super global IT infrastructure supporting our local office. That held up very well when we all went remote in March 2020. Thankfully, the IT didn’t buckle under the strain. The Cayman Islands came out of lockdown in July and I’ve been working in the office since, though staff do have flexibility to continue to work from home, especially those who commute through morning traffic. The Cayman Islands is (as of 15 March 2021), COVID-19 community transmission-free since July 2020 so we are very, very fortunate to be living relatively normal lives with the sole exception of the border being closed so travel is restricted. Having emigrated twice, I would implore anyone thinking of doing so to make the most of where you are – be it in Ireland or abroad. Everywhere has benefits and downsides. Enjoy the best of where you are and, if you move, make the best of that place. Nowhere is perfect but if you do have that sense of adventure, go for it. Louise O’Donnell  Manager of International Operations, Strategy, Legal & Compliance at Oman Insurance Dubai, UAE  Time abroad: 12 years I definitely knew what I was getting into when I moved here 12 years ago, and I would not change anything with regards to working and living overseas. I believe it has moulded me and allowed me to work in an extremely multi-cultural environment where I experience different viewpoints that will remain with me in the future. On a personal level, it allowed me to put down roots in a new city, take up new hobbies, and create a life. I also met my husband in Dubai.  However, due to the pandemic, it is the first time since leaving Ireland that I have not been able to go home to see my family and friends. The rate of change in lockdowns and the ambiguity prevented me from doing so. That said, I am not ready to move home yet, and given that my personal life is very much entwined in the region, it would be a difficult choice to make. My husband is from Palestine, so it would have to be a good move for both of us – a consideration I didn’t have when I jumped at the chance to move to Dubai.  For others wanting to move abroad, I would give the same advice pre-pandemic and post-pandemic: go for it. You might have a defined timeline for moving overseas and a plan for when you might then return home. I had that in mind, as well, but my plans changed. We all think ‘I will live overseas for a maximum of three years and then go home’ – most expats in the UAE had the same thing in mind, but most usually end up here for longer than anticipated. I think there will always be a need for overseas employment, particularly in locations that are well-known expat hotspots. These locations continue to be transient and are developing fast, hence the need to bring new talent into these cities will remain. Even though we are still working from home and many countries remain in lockdown, I do not believe that this will continue full-time post-pandemic. There is a lot of debate on this topic and we do hear of certain industries moving their staff to 100% work-from-home, but I am a firm believer that innovative work still gets done in the office and we all need face-to-face interaction. Niall Fagan  Audit Senior Manager at Grant Thornton  Newport Beach, California, USA Time abroad: 10 years When I embarked on my secondment in 2011, I was looking for a new adventure both personally and professionally. The initial transition was challenging, but working for a large global organisation with consistent systems and methodology made the work transition easier. Having been one of the first secondees in the San Francisco office, I set up a group where we help future secondees and international hires with their transition to the US and I love to pass along all of my experiences. It’s been just over a year since I’ve been to our office or to a client site. At first, it seemed impossible to think we’d be able to operate at the same level of efficiency remotely. While working from home has definitely had its challenges, I believe we’ve demonstrated that we can perform efficient audits in a remote setting, which could have a large impact on our industry. It brings into question the need for large office spaces and the need for audit team onsite every day. Continued remote working should provide more flexibility and better work-life balance for people. From a personal point of view, while the pandemic has been tough and we might have to wait until 2022 before we can make it back to Ireland again to visit family and friends, it has allowed me to spend a lot more time with my two small children, for which I’m thankful. If someone is considering a career overseas in the post-pandemic world, my advice would be to go for it. The Chartered Accountancy qualification is highly respected worldwide. You can gain invaluable experience, learn new skills, and grow your global network. From a life experience perspective, I believe living and working in another country is extremely valuable, and I would encourage anyone who has an interest to take a chance.

Dee Moran and Lilian Halpin explain entities’ existing obligations regarding beneficial ownership and look ahead to future developments, focusing on trusts in particular. Most entities have a legitimate role to play in the global economy, but they also have the potential for criminals to use the structure for money laundering, terrorist financing and other financial misconduct. To identify and increase the transparency of those that seek to hide their ownership and control of these entities, many countries have introduced a register of beneficial ownership. Having a register ensures that the ultimate owners/controllers are identified, and that accurate and up-to-date information on a beneficial owner is readily accessible to authorised officers and other competent authorities that are entitled to the information under money laundering legislation. In Ireland, entities must maintain a register to comply with obligations under the 4th EU Anti-Money Laundering Directive (4AMLD), which was passed in May 2015 and subsequently amended by the 5th EU Anti-Money Laundering Directive (5AMLD), which was passed in May 2018. Who is a beneficial owner? A beneficial owner is defined in the directives and Irish legislation by reference to the entity type (e.g. trust, corporate entity, investment limited partnership). The different pieces of legislation should be consulted depending on the entity. Common threads in the definitions are ownership and control, whether direct or indirect, and a holding of more than 25% of the entity. Are there two registers? There are two separate registers in Ireland. While companies were required since 2016 to gather information and maintain an internal register of beneficial ownership, the 2019 beneficial ownership of corporate entities regulations (one of two sets of regulations passed in 2019 relevant to beneficial ownership) required relevant entities to file information in a central register. The Central Register of Beneficial Ownership of Companies and Industrial and Provident Societies, which falls under the remit of the registrar of the Companies Registration Office, was opened for filings in July 2019. Any companies/societies in existence on 22 June 2019 had until 22 November 2019 to file their beneficial ownership details, and the five-month timeline to register relevant entities remains. Similarly, certain other financial vehicles described below must maintain an internal beneficial ownership register. There are also legislative requirements to file information on the central register, the Beneficial Ownership Register for Certain Financial Vehicles. Under specific legislation, the Central Bank of Ireland is designated as the registrar responsible for maintaining this central register. Under EU anti-money laundering (AML) regulations that came into effect in 2020, Irish Collective Asset Management Vehicles (ICAVs), unit trusts and credit unions that were in existence when the AML regulations came into force were required to register by 25 December 2020. Under the Investment Limited Partnerships (Amendment) Act 2020, which was commenced recently, existing investment limited partnerships (ILPs) and common contractual funds (CCFs) have until 1 September 2021 to register. Under both pieces of legislation, new financial vehicles that come into existence following the legislation’s implementation have six months from the date of coming into existence to register. What details must be registered? The information that must be delivered to each registrar concerning each beneficial owner includes name, date of birth, nationality, residential address, and a statement of the nature and extent of the interest held or control exercised by each beneficial owner. For Central Bank registration, it must be stated if the person is currently a pre-approval controlled function (PCF) holder in the entity or at any other regulated financial services provider. For companies and industrial and provident societies, the 2019 regulations require a PPS number to be furnished for verification purposes. The 2020 Act also requires PPS numbers to verify the information delivered in the case of ILPs and CCFs. In the case of both registers, the registrar is not permitted to disclose PPS numbers and must store them securely. Relevant entities must keep the beneficial ownership register up-to-date, and this information must align with the information filed on the Central Register. Where change(s) occur, the entity has 14 days to deliver the information so that the relevant amendments are made to the Central Register. Who is entitled to access the information in the Central Register? There are two tiers of access to data in the Central Register: Unrestricted access to the information in the Central Register will be afforded to authorised officers within specific organisations (i.e. An Garda Síochána, the Financial Intelligence Unit of An Garda Síochána, the Revenue Commissioners, the Criminal Assets Bureau, the Central Bank of Ireland, and other Irish competent authorities engaged in the prevention, detection, or investigation of possible money laundering or terrorist financing. Restricted access to information in the Central Register will be made available to the general public and designated persons (e.g. a bank carrying out customer due diligence, save where the beneficial owner is a minor). Those with restricted access will be able to access the name, month and year of birth, nationality, country of residence, and the statement about the nature and extent of the beneficial interest held. The beneficial owner’s date of birth and address will not be available to those with restricted access. Data protection law Any information exchange and sharing mandated by the legislation must comply with data protection law. Personal data is defined in Section 69 of the Data Protection Act 2018, and information to be collected and held on the central registers can include personal data. The data protection obligations are expressly recognised in the 2019 Regulations and 2020 Act, both of which provide that the Data Protection Act 2018 shall apply to the access the registrar affords to a designated person and any member of the public in respect of the information in the central register. Sanctions Sanctions include a fine of up to €5,000 for a trustee and a fine not exceeding €500,000 or up to 12 months imprisonment in respect of corporate entities. Future developments It is expected that a separate central register in respect of the beneficial ownership of trusts will be implemented in due course, as required under the Directives. This is expected to materialise sooner rather than later – trust regulations published in 2019 already impose obligations on trustees to seek and obtain information from beneficial owners of trusts and establish internal registers of beneficial ownership. The Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2020 was signed into Irish law recently, and contains provisions in relation to trusts. It defines a “beneficial owner” and lists certain trusts that would be excluded from a future requirement to register. These provisions are being introduced in anticipation of the Minister for Finance introducing further regulation in the area and to address part of the overall transposition of 5AMLD into Irish law. In Dáil discussions on the provisions, the Minister made specific reference to the requirements in 5AMLD that all member states establish a central register of beneficial ownership of express trusts. On the international front, the Financial Action Task Force (FATF), an intergovernmental organisation that promotes policies to combat money laundering and terrorist financing and of which Ireland is a member, announced in February that it would review the global rules around beneficial ownership. The European Commission recently stated that it would closely monitor the setting up of the central bank account mechanisms and the beneficial ownership registers by member states to ensure that they are populated with high-quality data. The Directives require interconnection of member state registers, and work to interconnect the beneficial ownership registers has already started. The interconnection will be operational in 2021. Meanwhile, related EU regulation dealing with the EU Central Register’s technical specifications is expected to come into force soon. The requirement to keep and maintain a register for beneficial ownership is here to stay, and a central register for trusts will soon be a legal requirement. An understanding of the requirements is important if sanctions are to be avoided. An EU central register is imminent. This will put further pressure on individual countries to maintain registers with high-quality information, so expect the spotlight to continue to shine brightly when this comes into existence. Dee Moran is Professional Accountancy Leader at Chartered Accountants Ireland. Lilian Halpin is a Consultant at Chartered Accountants Ireland.

A recent C-suite barometer showed a surprising level of optimism among international business leaders. Mark Kennedy deciphers the findings to explain why short-term optimism will need to be buttressed by business transformation plans and long-term investment strategies if organisations are to thrive in a post-pandemic world. A report detailing over 500 global C-suite leaders’ views on their outlook for 2021 during a worldwide pandemic always had the potential to surprise. Despite the current economic uncertainty, the most surprising finding was the consistent presence of optimism globally, with 71% of respondents assessing the outlook for growth in 2021 as positive. At the beginning of the pandemic, we witnessed resilience and consistency as some business sectors adapted reasonably quickly. For established companies, there was a kind of ‘muscle memory’ approach to the crisis that unlocked lessons learned and business continuity measures that were initially adopted following the global economic crisis of 2008. Despite the unique nature of the pandemic, businesses that previously invested in crisis management strategies appeared to exhibit more resilience. The state approach to the pandemic was also a big differentiator, as tax and legislative aid mechanisms created a profoundly different context for business. Countries in Western Europe mostly saw the benefit of this approach. In contrast, other parts of the world, such as Africa, received noticeably less business aid, which resulted in less optimism for the future. Business transformation plans Confidence in managing and mitigating risk during the pandemic was undoubtedly a factor in respondents’ forward-looking business transformation plans. Economic and technology transformation trends scored highly, with 90% expecting to respond to technology and innovation trends and 78% confident in managing upcoming economic trends. Technology transformation was the most likely focus overall for large companies ($1 billion plus), with 54% of executives indicating a more-than-50% chance of implementing technology transformation plans. While the need to digitally transform businesses has been on the agenda for some time, the crisis appears to have accelerated plans. If we take the retail sector as an example, the need to meet the demand for online shopping during lockdown has added an urgency to prioritising digital strategies. Perhaps more surprising than what was high on the list of business transformation plans was what respondents considered a low priority. While the travel ban during lockdown highlighted the vast potential to reduce carbon emissions, only 20% of respondents said they expected climate risk to have the most significant impact on their business: the lowest on the list. This figure is slightly higher among Western Europe companies (25%), suggesting it is higher on executive agendas in that region. However, it is less than 20% in Latin America, Africa, Central and Eastern Europe and the Commonwealth Independent States (CEE/CIS), and the US.  One potential reason for climate risk attracting such a low score is the current lack of bottom-line accountability. Despite the growing need to mitigate climate change risk for business sustainability, leaders often treat it as an intangible business issue. They see it as being driven by regulatory momentum rather than a tangible business goal to be approached in the same way as technology or new service transformation plans. However, climate change will become a matter of profit and loss for many companies over the next ten years, either because it will influence how capital is obtained and the cost of infrastructure, or it will become an opportunity to do more business. It is a similar story with cultural change, which scored equally low on respondents’ business transformation plans. As mandatory reporting on environmental, social, and governance (ESG) issues becomes more widespread in both cases, businesses will need to consider these developments in business transformation plans. What is driving the business agenda? While technological transformation is the overarching theme, how businesses approach plans is often driven by regional and industry factors. In financial services, a high level of regulatory and compliance demands in Western Europe and the US is the driving force for banks and insurance companies launching digital strategies to automate and manage data management and reporting costs. In manufacturing, meanwhile, technology transformation drives improvements in efficiency and productivity. These regional differences were also evident when looking at investment plan timeframes. Businesses in Africa, for example, are looking at short-term transformation plans to drive profitability. In Europe and Asia, investment plans are put in place as strategic building blocks for the next decade and beyond. While this is not surprising when looking at the maturity of business development in each region, it also reflects the lack of state aid available to prop up economies and businesses in times of crisis. A further factor driving the business agenda is confidence in a company’s ability to respond to trends. In general, the barometer shows that businesses are optimistic in their ability to tackle most trends, with 90% either ‘very’ or ‘fairly’ confident in tackling challenges involving technology and innovation. Businesses in Asia-Pacific are more positive in their ability to respond to technology trends than in Western Europe, with 92% confident there compared to 85% in Western Europe, reflecting the vibrancy of the region’s technology start-up scene. However, executives are less confident in their businesses’ ability to respond to some other trends. 28% of companies are ‘not very’ or ‘not at all’ hopeful in dealing with the impact of climate change. This lack of confidence in responding to some trends may be down to the fact that, as discussed earlier, it is positioned lower down on the business transformation priority list. A further worrying response is executives’ lack of confidence to deal with social/political changes and public health challenges. While many businesses expect both trends to impact them in the next three to five years, a quarter of respondents are not confident in their ability to address them. Western European businesses are the least confident in dealing with social/political, climate and public health trends. Less than 65% declared themselves ‘very’ or ‘fairly’ confident for each. Asia-Pacific companies were much more optimistic than their Western European counterparts in responding to public health challenges – 77% of the former looked forward with optimism. This regional difference may reflect Asia-Pacific societies’ longer experience managing epidemics, like the SARS outbreak in 2003. Longer-term investment strategies It is important to recognise that the pandemic’s impact on investment plans is critical in moving from a short-term to longer-term outlook. The change in business priorities and how business is conducted since the crisis started has given CEOs across a wide range of sectors a clearer picture of why making long-term and sustainable investments is a sensible business decision. Interestingly, female respondents were more inclined to opt for longer-term investment strategies. Female leaders represent less than one-third of respondents, but with the number of female business leaders rising, the shift to longer-term investment planning is likely to increase. It signals a much-needed focus on long-term business sustainability. This shift to longer-term sustainability was highlighted by the number of respondents who consider investing in sustainability initiatives to be a relatively long-term business activity. It was rated the fourth longest-term out of 23 activities, behind external growth opportunities, corporate strategy, and research and development (R&D). However, company size and sector had an impact. For manufacturing companies, sustainability initiatives are the longest-term activity of all. This reflects the transition away from fossil fuels and towards more sustainable business models. Sustainability is seen as a long-term activity in the financial services sector, but sourcing new talent, government engagement, R&D, and maintaining IT systems are higher long-term priorities. It is interesting to note that sourcing new talent is seen as a long-term priority, particularly as the financial services sector is in a phase of disruption driven by technology and new entrants. While this may suggest that the industry sees sourcing new talent as increasingly difficult, it may also hint that financial services companies still see themselves as people industries first and foremost. The responses from technology and telecoms companies indicate that sustainability initiatives are viewed as one of the shortest-term activities in those sectors. External growth opportunities and regulatory issues are the two longest-term categories for this group, which considers acquiring customers as a longer-term activity than maintaining customers. It paints a picture of an industry that sees high growth as the key to its long-term and short-term future and one that is less concerned about its physical footprint and managing long-term external risks when compared to other, older industries. Of course, as new EU privacy laws become even more embedded, the technology sector may see regulation as both a short-term and long-term priority. Company size is a further factor. Larger ($1 billion plus) companies are most likely to consider sustainability as a longer-term business activity, reflecting that they have the resources to build a sustainability programme and the more significant external pressure on large and recognisable businesses to address sustainability issues. Executives from small- and medium-sized enterprises (SMEs) still regard sustainability as a relatively long-term activity, but R&D, corporate strategy, and external growth are viewed as higher long-term priorities. Framing a reset strategy What can we learn from the barometer results, and does it help frame strategies as companies look to reset? Looking at differences as well as similarities can give CEOs some bell-weather trends to consider. Take the fact that the barometer portrays businesses as generally optimistic. This helps provide momentum and confidence for the growth outlook, even though executives will consider different growth strategies and action pathways. It is then a question of looking at that growth landscape in more detail, so plans are more robust. Another key takeaway from the barometer is that businesses across the spectrum are prioritising driving technological change in one form or another. This could be implementing technology to transform and improve productivity, reduce costs, capture a business advantage from, say, increased online demand for products and services, or using it to enrich and enhance marketing strategies. Again, it is about capitalising on specific trends within the business sector. One aspect of technological change to keep in focus is the need to mitigate risk. With increasing complexity in the data and privacy regulatory landscape, it is crucial that – similar to technology transformation plans – risk mitigation remains high on CEOs’ agendas.   With the barometer also highlighting a growing appetite for ESG themes, it is essential to keep track of sustainability issues – particularly when reporting. ESG reporting is still not a high enough priority for CEOs, but it will demand greater focus from a risk management perspective in the future. Also not to be overlooked is the opportunity for businesses to create strategic business advantage by becoming an early adopter of, for example, environmentally friendly solutions or applying ESG as a business differentiator. Finally, a more oblique takeaway from the barometer’s high level of business optimism was the importance of investing in resilience. As we saw from government and company reaction at the beginning of the pandemic, lessons of the last economic crisis appeared to have been learned, particularly on the importance of continuity and making businesses more resilient to shocks. There are many examples of companies achieving business continuity success, whether through the ability to add flexibility in the supply chain or rapidly adapt products to meet changing consumer and business needs. It is clear that, where CEOs take the time to fully understand business and regulatory trends and invest in forward-looking strategies such as resilience and sustainability, charting a course out of the crisis will not be driven by short-term optimism alone but a realistic long-term growth strategy. Mark Kennedy is Managing Partner at Mazars in Ireland.

Conal Kennedy, Head of Practice Consulting, writes: As the year draws to a close, many members in practice pause to reflect before starting their work in the New Year. Sometimes members will make plans to build their practices through organic growth, or to consolidate what they have in the New Year. In other cases, the turn of the year may lead them to conclude that more fundamental changes need to be made. Is it time to consider merging your practice with another, or selling it? You may have been generally interested in buying a practice or a block of fees, but is now a time to pursue this more vigorously? We in Practice Consulting are sometimes approached by firms to assist them with one of these ventures. If you are interested, feel free to contact us and we will endeavour to advise you and possibly to reach out to make contact with other firms on a confidential basis. We are particularly interested in hearing from members who would like to retire and sell all or part of their practice. We may also be able to help members who are currently sole practitioners but would be interested in joining a larger firm as a partner. We also need to hear from those people representing the opposite sides of these transactions, the potential purchasers or those larger firms. If you would like to discuss this further please contact us individually at the contact points below or email us at practicemembers@charteredaccountants.ie in confidence.

Conal Kennedy, Head of Practice Consulting, writes: As we start into October, the end of the year looms, and we begin to look back at 2020 and focus more on 2021. The COVID-19 crisis has been the overwhelming story of the year. Very few businesses or practices have done better out of the crisis but everyone has done something different. What has been brought home to firms is the value of being prepared. Those firms that had invested heavily in technology were the best placed to rebound. That said, what has struck me most is the resilience and resourcefulness of our members in practice. Members pivoted from business as usual, to remote working, and on to a blend of remote and socially distanced working. Members moved quickly at each stage to assess the situation, gather information and help their clients, first to secure cash flow, then to arrange state benefits, then to help with those structural changes that are necessary to meet the demands of the new normal. As this continued, the regular work of compliance continued. What turn is next from the crisis remains to be seen. As of going to print, governments on both sides of the border are contemplating reintroducing measures to control the resurgence of the virus. In the meantime, a hard Brexit is threatening. What is certain is that more change is coming and practitioners will have to respond again. In the weeks up to 8th July, we carried out the All-Member Survey 2020. We asked a range of questions, including members’ engagement with and attitude to the Institute, and their responses to the COVID-19 crisis. See Brendan O’Hora’s article in this month’s Accountancy Ireland, where he provides an overview of the results of the survey. Specific points relating to practice were that practitioners have been disproportionately impacted by the crisis, compared to members generally. 93% of members in practice considered their firms were stable or growing at the start of the year, but 63% changed their description post-COVID to being somewhat impacted or struggling. In the Republic of Ireland, 47% of practising members said that they could charge clients usually or always for work done to assist them in dealing with the crisis, and 35% said that they could charge for this work sometimes. In Northern Ireland, these percentages were lower at 39% and 33% respectively. Practitioners were generally pleased with the Institute’s response to the crisis, particularly the supports provided through the COVID Hub and the Webinars series. Compared with members in general, practising members are generally more engaged with the Institute and see it as more relevant to them. We were pleased to see a 7% drop in those members in practice who stated that they were dissatisfied with the Institute since the last survey in 2018. The Institute has already used the results of the survey to inform the issues that we should raise with government as a matter of priority, and it has also informed our continuing engagement with our members to determine what practical steps we should take to improve the experience of members in practice. At this stage, members in practice have told us that they are keen to generate and develop new work. As always, referrals are the best source of new work, and these are not particularly impacted by the crisis, in that if you do good work for clients, they will let their contacts know. However, practitioners have a natural desire to try to accelerate this process by forging and renewing personal contacts in their networks. As we go through lockdown and socially distancing measures, this is more difficult. Many members are most comfortable if they can visit a client or contact and meet personally with them in their own physical space, and they feel that conversation and ideas flow most readily in this environment. In this instance, it makes sense, so far as is safe and reasonable to create these opportunities for physical visits, even if this process needs to be more structured and is less spontaneous than before. Other members are now reaping the rewards of early efforts to digitalise their marketing efforts, especially in the social media space, that, if anything has taken on more importance in this crisis. If you have not developed a significant social media presence before now, it might be in order to do this now. One way or another, you should be planning ahead, and considering how you will finish out this year and what plans you should put in place for 2021. For our part, the Institute will take member feedback on board as we plan our services in the year ahead, so we continue to keep pace with the needs of members in practice.

Taking the time to carry out a corporate simplification project during COVID-19 could help sustain your business while safeguarding employees’ motivation and focus, writes Claire Lord.The effects of COVID-19 are severely impacting the global economy. To ensure long-term protection and sustainability, organisations are likely considering ways to reduce costs and improve business efficiencies. Simplifying your corporate structure by removing dormant or unnecessary companies is one way to achieve both objectives.It is not uncommon for organisations to have complicated corporate structures. While many companies within these structures serve a particular purpose that brings value to the business, other companies may be inactive and costing the organisation money to maintain. A lack of time and resources often results in organisations putting off any review of the efficacy of their corporate structures.Perhaps now, a time when employee capacity could be higher and long-term sustainability is a crucial focus, is time for your organisation to examine whether your current structure meets the changing needs of your business? The sooner the steps in a corporate simplification project are taken, the sooner your organisation can enjoy the many benefits.Cost savingsThe cost of maintaining a dormant or inactive company is usually understated. The actual cost can exceed €8,000 per year when compliance and audit costs are taken into account. This does not include the hidden costs of administration and employees’ and management’s time spent coordinating this compliance.Employee productivityMany employees are worried about job security as a result of COVID-19. A project demonstrating that your business is focused on long-term sustainability may help improve employee motivation and focus, consequently enhancing productivity and alleviating fears of job security. Workloads may also be lighter due to the impact of COVID-19 on the economy, and utilising employee time to assist with a simplification project can ensure that their time is spent productively to help sustain the business.Business efficiencyManagement, legal and compliance teams must focus their time, now more than ever, on the core companies required to sustain and grow a business. Eliminating unnecessary companies allows these teams the time to do that. A less complicated structure can also simplify the repatriation of cash from trading subsidiaries and other intra-group financing arrangements.Mitigate riskThe existence of a company can expose a business to risk, including error, fraud, or a failure to meet regulatory or compliance requirements. These risks arguably increase with dormant and inactive companies, given the likely reduction in monitoring as management focuses on the core companies required to run the business. There is also the risk that, over time, corporate memory will disappear, making it more difficult to assess whether a company needs to be retained.Governance standards and transparencyWith ever-changing legal and corporate governance requirements for companies, including new anti-bribery and data protection laws, ensuring that companies meet the required standards is a constant challenge. It is easier to maintain these standards with a less complicated structure. Improved transparency through a simplified structure is likely to be welcomed by investors, finance providers, and other stakeholders.Tax benefitsComplicated structures can sometimes lead to tax inefficiencies, such as tax leakage or additional tax compliance burdens when repatriating cash through the business. Simplifying the complexity of a structure may resolve these inefficiencies and allow for improved tax planning for the business.ConclusionAt a time when organisations must reduce costs and increase business efficiencies to ensure long-term sustainability, considering a corporate simplification project may be a simple step that delivers meaningful results.Claire Lord is a Corporate Partner and Head of Governance and Compliance at Mason Hayes & Curran.

Kieran Moynihan explains how boards, and non-executive directors, in particular, can optimise decision-making during times of crisis.A veteran non-executive board director (NED) recently shared valuable insights into the workings of an experienced board dealing with the severe impacts of COVID-19 on the organisation. While this is quite an experienced board with battle-hardened veterans in both the executive and non-executive ranks, he indicated that they collectively struggled with the enormity of the challenge facing the organisation.While the board was quite mature in terms of risk management and business continuity planning, several significant decisions were required in a very short time frame. He was extremely complimentary of the efforts, understanding and commitment of the employees to the organisation as well as the outstanding leadership shown by the CEO and executive team. He also highlighted how much the NEDs “rolled up their sleeves” and provided great support in reviewing, challenging, and providing valuable input to the crisis management plan. He highlighted that the CEO witnessed a “new side” to the board whereby it demonstrated a huge commitment not only to the organisation, but in supporting the CEO and executive team as they implemented an elaborate crisis management plan under severe pressure.Unfortunately, some boards have not performed as well during the crisis. The core problem, I believe, is often the calibre of board members. Some are not strong enough to cope well in an emergency to add any strategic value to the executive team. This scenario continues to play out in boards across the world where, in some cases, board and executive teams have faced existential challenges in terms of their organisation’s survival. Amid the devastating impact on employees, an organisation’s financial health, and its shareholders and stakeholders, boards must stand up and be counted like never before.The following definition of crisis management from Deloitte caught my eye recently: “Crisis management is a special, strategic discipline that enables an organisation to leave ‘business as usual’ behind, and to enter a different mode of governance and operations, designed to get decisions made, implemented and communicated quickly, with clear – but different – designated authorities.” While a board has many broad types of responsibilities, the fundamental duty of a board is to make significant decisions. At a time of extreme crisis management, this acute responsibility comes to the fore. It represents a real test of a board of directors in terms of its calibre, decisiveness, effectiveness, judgement, and performance. The following factors can help a board optimise decision-making in the eye of a storm.Quality informationThe brutal reality of the COVID-19 crisis is that major decisions must be made in compressed time frames of days or, in extreme cases, hours. Many of these decisions have serious consequences for the organisation and its employees, customers, shareholders, and stakeholders. Board chairs have a critical role in enabling the board to overcome these compressed review/decision cycles and drive coherent and decisive decision-making.In normal times, quality information is the lifeblood of a board in terms of significant decision-making. In times of crisis, however, it is challenging for the CEO and executive team to create comprehensive board packs when you may have just 24 hours before the next virtual board meeting. In this context, quality is more important than quantity in terms of helping the board understand the logic behind significant proposals from the CEO and executive team.While not ideal, firefighting CEOs and executive teams rely heavily on gut instinct to choose from what appear to be radically different options. It is essential to provide the NEDs with your gut instincts and blunt assessment of the pros and cons of each option.Challenge, debate, and oversightWhen the stakes are high for significant board decisions, the board must maintain the highest standards of challenge, debate, and oversight. A CEO and executive team under severe pressure could undoubtedly get a big call wrong or struggle to create a coherent proposal for consideration by the board. Despite the challenging time frames for decision-making, NEDs must prepare for board meetings, ask hard questions, and add genuine value (in some cases, by identifying additional options or variations/combinations of options that will help the executive team see the wood from the trees).The board chair has a vital role in balancing the level of challenge, debate, and oversight with supporting the CEO and executive team. Genuine board diversity has been a very positive strength for boards as the broader range of thinking styles has enabled greater left-field thinking and more creative problem-solving, while significantly reducing the potential for group-think. At such a crucial time, shareholders, employees and stakeholders rely heavily on NEDs to provide such critical challenge, debate, and oversight to reach the best decisions.The trust equationThe COVID-19 crisis is testing the bonds in many board teams. In such fraught times, tensions can morph into damaging conflict, which boards can do without. While some high-performing board teams have managed this challenge in their stride, this crisis has also galvanised many board teams around a common purpose.A crisis of this magnitude shines a bright light on the ‘trust equation’ of a board. It can be challenging in such a volatile landscape, with so much uncertainty in each sector, to make concrete decisions. Decisiveness, however, is nevertheless a vital trait for a board in crisis management situations, and it is much more effective when the trust quotient is high. In order to strengthen trust, boards can extend a greater degree of latitude than normal to the CEO and executive team, enabling them to provide timely, insightful updates back to the board on the progress of major decision implementation.Changing courseOne of the most challenging aspects of the crisis for many company boards has been facing up to the requirement in specific sectors to make significant changes to the company’s business model and strategy. For companies that had a dominant market position for many years, it can be challenging to face up to the reality that the market has changed, customer requirements have changed, and in some cases, barriers to entry have been lowered with disruptive new technologies.'Independence of mind' is a critical quality in a NED whereby the board director who is not involved day-to-day is able to step back, take a cold, objective view on the organisation’s position, assess the options and implications of a major proposal being put forward by the CEO and provide a sound independent judgement. In this scenario, where an organisation is facing severe challenges to its existing strategy and business model, independence of mind in the NEDs plays a critical role as it can help the board and executive team face up to and address severe challenges to the existing strategy. Some boards might hope that everything will go back to normal but, for most sectors, things will never be the same. As a result, the organisations that adapt will stand a much higher chance of thriving in the years ahead. Throughout the crisis, I have seen several progressive NEDs utilise this time as an opportunity to evolve the overall mindset and level of ambition in the organisation. NEDs are ideally placed to catalyse this evolving growth mindset as in the majority of cases, the CEO and executive team are in firefighting mode and struggle to have the bandwidth to think strategically and grasp the growth opportunities that the organisation could be presented with.External expertiseWe are in uncharted waters in terms of crisis management. As a board gears up to make big decisions, it is vital that, where appropriate, key shareholders and stakeholders are consulted. They will be forced to live with the consequences of the board’s decisions for years to come.Besides the fact that this is the right thing to do, engagement builds support and is formally required in some instances. It will also provide valuable feedback that, in specific scenarios, may be incorporated into the board’s thought processes.It is also vital that, where needed, external expertise is sought to assist with significant decisions. This might be an existing advisory partner who understands the organisation and sector, or an independent sector expert who could provide an objective assessment of the options.Avoid ‘all-in’ decisionsI play chess at a competitive level, and one of the things you learn as you get more experienced is to avoid, wherever possible, making very committal decisions. This is particularly important when the chessboard is ‘on fire’ with severe complications, and it is simply not possible to calculate the variations. Instead, you seek to stay in the game and get through the next few moves. As the board position becomes clearer, you then make a more committal decision as you execute your plan.The COVID-19 crisis is changing by the hour. As governments struggle to balance the resumption of normal life with the associated public health risks, it is tough for the majority of boards to accurately predict how their sector will look in three months, not to mention one year from now. In some cases, companies are being forced to consider severe changes to their business model. Boards should avoid making premature decisions based on assumptions about how the COVID-19 crisis will influence customer behaviours, business models, and the overall business landscape. Like a game of chess, boards would be wise to develop a range of scenarios linked to the public health and associated economic impacts with appropriate trigger points.Understand the broader impactsAt the start of the year, many boards had made significant progress in increasing their focus on environment, social and governance (ESG) goals, employee engagement, and ‘doing the right thing’ in terms of focusing on the long-term, sustainable wellbeing of the organisation. This has since been severely tested in how boards signed-off on significant decisions impacting their employees, customers, and stakeholders.In some cases, the COVID-19 crisis is undermining much of the significant progress made with decisions favouring short-term shareholder interests at the expense of employees, other stakeholders, and the long-term sustainability of the organisation. Throughout the world, employees have demonstrated incredibly strong commitment and understanding to their organisations and customers. How boards respond to this commitment says a lot about the character, culture, integrity, and values of an organisation. It is encouraging to see a significant number of institutional investors highlight the importance of this for their portfolio of listed companies. In many respects, we saw ESG at its very best in the first few months of the crisis with so many employees and organisations stepping up to help society in its time of need.I strongly believe that the organisations that commit long-term to the core ESG principles of sustainability, partnering with their employees, going the extra mile for their customers and “doing the right thing to ensure the longer-term interests of the organisation” will be the organisations that flourish and thrive going into this uncertain future. The board has a critical leadership role in this. We are moving into an era where progressive boards are evolving into a far more thoughtful balancing of the interests of shareholders, employees and stakeholders. The COVID-19 crisis has crystallised the importance of this multi-stakeholder engagement model and is now firmly in the mindset of customers, prospective employees, partners and investors when they consider engaging with organisations.ConclusionSeven months on, boards continue to grapple with COVID-19 and struggle to make some of the most significant decisions ever made in the history of their organisation. Even the strongest, most high-performing boards struggle to get this right, so for any board members struggling right now, you are not alone.This is a time for board teams to pull together and work closely with the CEO and executive team. Through challenge and debate, you will collectively make the best decisions possible and help your employees, shareholders, and stakeholders envision a path to better days ahead.Key takeaways for boards and non-executive directorsAt a time of such crisis and volatility, it is vital for the board to regularly discuss what is happening with your customers, how the crisis is impacting them, how their requirements are changing both short-,  medium-and longer-term and how the organisation needs to adapt to support your customers.It has never been more vital for the executive reporting to the board to be high-quality, succinct and utilising executive summaries to enable the board members to prepare effectively for the board meeting and assist in the creation of a meeting that can focus on strategic and “move-the-needle” type discussions.Balance cost-cutting, productivity and risk mitigation with supporting innovation-led growth and strategy and business model shifts where needed.Be aware that boards are moving to agile approaches to strategy and budgeting using scenario planning and triggers that work better in situations of high uncertainty such as the ongoing COVID-19 crisis.Organisations, as they facing their greatest crisis, have never had such a strong requirement for board members to demonstrate a great work ethic and commitment to the board and organisation.Kieran Moynihan is Managing Partner at Board Excellence, which supports boards in Ireland, the UK and mainland Europe.

Donnchadh O’Neill explains why boards and their advisers will have to tread carefully as they work to recover their foothold in the new landscape.All professional advisers, including Chartered Accountants, are seeking new ways to support their clients. They are helping them navigate unprecedented changes in their workplaces, their financial reporting, their restructurings, and their contracts. In many cases, they are helping businesses fight for survival. Given the heightened risk of missteps in such a turbulent environment, corporate reputation management is now more vital than ever.In the short-term, clients face practical and legal considerations affecting business reopening following a Government-induced coma. Finance functions have been virtualised and governance structures tested. Workforce and workplace transformation has been sudden. Margin sustainability is the new short-term challenge as costs increase, and that is before you consider the looming recession and inevitable insolvencies that will follow.In the last crisis, services and supports to business changed with firms flexing different muscles more suited to the adverse conditions. Liquidators and receivers found themselves in the headlines, sometimes even taking strict precautions to protect their safety by avoiding media attention.Now no one can predict with any accuracy where this crisis will lead in working trends, in accountability requirements, and in ownership structures post-bailouts and business retrenchment as we face into recession. It is easy to foresee the bloodbath on Grafton Street and in specific sectors, which has already begun in terms of liquidations and receiverships. What is more intangible is the effect this long drawn out crisis will have on corporate behaviour, communications, and corporate reputation. Chartered Accountants are on the front line with their clients as these winds blow.I have worked over many years with excellent companies delivering on what they see as their mandate for their various stakeholders. They focus on delivering shareholder value, but also stakeholder value. Following the financial crisis, good corporate ethics, culture, and governance became a priority. Chartered Accountants Ireland shared a leadership role in this arena, with strong educational initiatives to teach and support members, business executives, and even directors. Accountants helped their clients develop risk management processes, including reputation risk, to embed prudence into corporate culture, prevent hubris, and guide decision-making.Regulation increased, especially in the financial services sector. The banking industry set out to address its behaviours by establishing the Irish Banking Culture Board. The EU grew its oversight activity by exercising its muscle to protect consumers. As climate change moved up the public agenda, companies began to include sustainability reports in their annual reports – and this will continue.Over the past number of years, the corporate sector has increasingly had to become more socially conscious, valuing and measuring its societal impact and its corporate reputation. This emergency has put a whole new speed and power behind what was already a growing trend. As harder decisions are taken in the months ahead, companies and clients will need sound judgement as they implement decisions that have a societal, as well as a financial, impact. The climate crisis is upon us and is already forcing its own reset. Failure to make decisions that account for the common good and the public interest can wreak enormous reputational damage and all the attendant costs of that. Great care and balanced thinking will see companies achieve their goals without being forced by political or public opinion to backtrack or revisit decisions ineptly announced or executed. Markets will judge companies ever more so on their ethical behaviour.Look at the public interest trend of late: companies and wages being kept afloat by the State;   companies declaring a pause in dividends (if only to preserve cash); others being mandated to do so (e.g. the banks). More than 300 listed companies in the UK have cut or cancelled pay-outs. Money earmarked for shareholders will be used instead to service or repay debt, or just to stay afloat. The insurance industry was elbowed by the Minister for Finance, while the courts will probably have the final say. Companies such as Aldi pledged to pay their small suppliers early to keep their cash flow healthy.I do not doubt that as governments the world over ultimately face the bill for this COVID-19 bailout, tax and tax avoidance and wealth taxes will move much faster to the top of the agenda. This will feed into director and corporate reputation management, and advisers will have to be aware of the spirit as well as the letter of the law when advising clients.Commentators are already forecasting a shift away from capitalism and globalisation – that will continue. Growing your food locally and manufacturing locally suddenly look like viable ways to manage your own future risk. Brexit and global trade wars are yet to hit, not to mention the effects of preparing businesses for a low-carbon future.Will companies and their financial advisers, expected to act as citizens, focus on protecting and building up their social capital as well as their share capital? Employee health and protection became the top priority in recent months. How do you provide for unknown bottom line impacts for employee illness, absenteeism, or indeed legal claims? Insecure, gig economy, zero-hours type jobs have also been exposed for their human cruelty, and there will be a continuing priority on workers’ economic health (possibly even a universal wage or basic income for all).While capital will naturally only go where it has a reasonable expectation of a return, will investors be forced to rethink what is proper and possible for successful companies in an era of depression? How will directors and boards justify levels of executive remuneration that might look extreme and still manage to retain the permission to operate under a social contract, maintaining trust and enjoying a corporate reputation that underpins value? Apart from taxes, will companies have to become almost philanthropic in some of their behaviours?Corporate activism will grow as companies need to be seen to be responsible; to solve, not just sell. Liquidators and receivers will have to execute their mandates with an assured eye on the public and political impact of their decisions.Will companies build and wield their ‘soft power’ in focusing on purpose as well as profit? We have all admired genuine public service and public servants in recent months. Will the era of State-owned commercial entities come back into fashion by necessity, forced to step in and own hotels (remember Great Southern?), airlines, food companies (remember Irish Sugar and Erin Foods?), shops and insurance companies? We might well be facing an era of “de-privatisation”.In a perfect storm of increased costs, reduced margins, and recessionary outlook, with bankers and receivers taking hard decisions, the need for companies to communicate, to explain, to justify and most of all, to “do no harm” will be right up there among the top commandments. Boards and their advisers will have to tread carefully as they adjust, speak, and act to recover their foothold in the new landscape. Companies will sustain great reputations not just because they have great products and services, but also because they take full account, in advance, of the public impact on – and reactions to – their decisions.Donnchadh O’Neill is Managing Director of Gibney Communications.

Dr Annette Clancy explains why a growth mindset is critical to success when faced with relentless, and seemingly endless, uncertainty.COVID-19 forced companies to adapt and change with unprecedented speed. Change is always on the agenda, but the pandemic accelerated it. Right now, organisations are planning to bring people safely back to the workplace. Planning is essential to reassure workers and clients that their safety is a priority but, as COVID-19 has demonstrated, plans are only partly useful in a context where the future is complex and unpredictable. Organisations will need to cultivate adaptability to continue to respond to this ever-changing environment.AdaptabilityCarol Dweck is a Professor of Psychology at Stanford University who researches human motivation. After studying the behaviour of thousands of children and their attitude to failure, she coined the terms ‘fixed mindset’ and ‘growth mindset’ to describe people’s beliefs about learning. A fixed mindset assumes that intelligence or character is limited in the sense that it cannot change. As a result, people see effort as fruitless and obstacles as indicators that they should stop working. A growth mindset thrives on challenges and learns from criticism. It sees obstacles as opportunities to learn and persists when faced with a challenge.Dweck’s mindset theory has been enormously influential in how we think about motivation and adaptability, not only in relation to children but also because of its applicability to people and organisations more generally. Dweck’s book, Mindset, has been a best-seller since its publication in 2006. And it has particular relevance today, as a growth mindset approach to planning amid a pandemic is likely to yield more benefits than a fixed mindset approach.The power of ‘yet’Those with a growth mindset do not view obstacles or challenges as failures. Rather, they view them as challenges to be overcome. Dweck shared the following example in her 2014 TED talk.“I heard about a high school in Chicago where students had to pass a certain number of courses to graduate, and if they didn’t pass a course, they got the grade ‘Not Yet’. And I thought that was fantastic, because if you get a failing grade, you think, I’m nothing, I’m nowhere. But if you get the grade ‘Not Yet’, you understand that you’re on a learning curve. It gives you a path into the future.”The concept of ‘yet’ removes the fear of failure. It suggests that it is possible to achieve outcomes with adaptability or change, thereby increasing the likelihood of increased cooperation and the free flow of ideas. From a fixed mindset perspective, changing direction or re-strategising is a significant problem that may throw the company off direction. From a growth mindset perspective, this may be a challenge, but also an opportunity to adapt creatively.Dweck’s research suggests that the latter framing allows for psychological adaptability, which will yield practical results.The blame gameDweck tells us that blame is part of a fixed mindset, as she explains in this quote from her book: “When bosses become controlling and abusive, they put everyone into a fixed mindset. This means that instead of learning, growing, and moving the company forward, everyone starts worrying about being judged.”This type of atmosphere inhibits creativity because employees will fear being blamed for risk-taking, which is central to adaptability. Leaders who exhibit a growth mindset have a vested interest in developing people and encouraging creativity. They rarely use the company as a vehicle for narcissistic posturing. Their interest is in growing the company and supporting the creative adaptability that will ensure the success of the organisation and its people.COVID-19 is pushing everyone to adapt to new ways of working. Dweck’s research on mindsets offers one perspective on enhancing creativity at a time of uncertainty and change.Dr Annette Clancy is Assistant Professor of Management at the School of Art History and Cultural Policy at UCD.

John Kennedy explains how Chartered Accountants can help their clients break free from the shackles of their current challenges and, instead, work towards a brighter future.As we continue to deal with the implications of the untamed coronavirus, we have all been forced to pause and take stock. Many things we historically assumed can no longer be taken for granted. We, therefore, need to learn new habits, develop new routines, and adopt new ways of thinking.At the core of that change is the need to secure our future by identifying, and wisely investing in, our most precious assets. Take a moment to pause and think of the most valuable assets your practice holds – what are they?In my opinion, there are two: attention and energy. Your future success will be determined by your ability to take control of your attention and energy and, in turn, by how you guide your clients to invest their attention and energy where it is most productive and provides the greatest return. You and your clients must stop wasting your attention and energy on unproductive, corrosive thinking.Corrosive and constructive thinkingThe world is flooded with corrosive thinking right now. And, like anything with massive oversupply, it has no value. Corrosive thinking keeps you in a closed loop of negativity, consuming your attention and energy by focusing on the missteps, the problems, and how costly they will be. You will get no positive return on the attention and energy you invest in corrosive thinking.Constructive thinking, on the other hand, is entirely different. It is scarce and, therefore, has an unusually high value. Constructive thinking moves you away from worrying about how you and your clients reached this difficult place and, instead, focuses your attention and energy on reaching a better place. To move from A to B, however, requires the wise and judicious investment of your vital resources.The key is to take control of your future decisively. This is not an invitation to undertake some form of positive thinking or encourage you to merely wish or hope for better times. It is quite the opposite. It is a specific and practical skill that will enable you to create a clear image of a better future and identify the steps to reach that destination.The kitchen testNeuroscience has helped us understand how to harness the power of our brain and use our capacity to think more effectively. If you don’t take control of this capacity, your brain can easily work against you or steer you off-course. But when you know how to harness the power of your brain and focus it on success, profound change is possible.Achieving the success you seek always begins with creating a clear image of that success. Let us put it to the test.Take a moment to think about a room you are familiar with. Your kitchen is a good place to start. As you develop a clear and vivid image of your kitchen, your mind will work with you and help you set out in great detail the many specific aspects of your kitchen. You will be able to give this image real substance – the colour of the walls, the type of floor, or any paintings, pictures or posters on the walls, for example. You can create an image that is clear, vivid and substantial – and that is a very useful talent.The kitchen test shows that you can harness your thinking to work your way through the recent crisis and create a clear image of a better future. This is key to your investment strategy, as you can create an image of future success that has the same level of detail and clarity as to the image of your kitchenWhy is this important in terms of your future success and your success with clients? Left uncontrolled, your mind will come up with detailed and comprehensive images of the difficult situation you are in. It will default to wasting your much-needed energy by placing too much emphasis on the worries of the present. However, the troublesome present is where the problems lie. You want to be in a better place, but you have – at best – a vague and hazy image of that destination.The difficulties of your current reality will appear more potent than any possible future success. And since the mind values clear and detailed images, it will be drawn to where clarity and detail already exist – in this case, on the difficulties of the present situation. This is why the strength and scale of your problems seem to grow and grow. The more you focus your attention and energy on your current difficulties, the more vivid they become to the point that you may not be able to discern a successful future at all.This is where your investment strategy can provide its most significant return.The high-return investment strategyIn taking active control of your thoughts, you can switch your attention and actively invest your energy where it can deliver a more valuable outcome. This is not a trivial skill – it is scarce, of high value, and the vital key to future success for you, your practice, and your clients.To get full value from this insight, you need to establish a new habit. From this point on, every time a client falls into the routine of talking about the worry and stress they face, take active control of the dialogue and help them create an image of a better future.Don’t waste their attention and energy on vague or wishful thinking. Instead, guide them to create a clear and vivid image of a better place, an image that is as clear and real as the image of your kitchen.Rather than dwell on familiar problems, set them on a quest to establish what a successful future would be like. Your client has already built a business that is successful enough to need your accountancy expertise. Now, you can use your insights to help them leverage their knowledge and experience to create an image of a successful future.Research has conclusively shown that this ability is central to the success of the very highest achievers, those who achieve great success and prevail at times of stress or uncertainty. By helping your clients invest their attention and energy in creating a clear and specific image of future success, you are providing them with an immediate and powerful resource. They turn their thinking, attention and, therefore, energy to what they want to accomplish.For more than three decades, I have encountered a habitual pattern of clients focusing on current problems rather than investing actively in future success. Ironically, this habit can be most pronounced at the very time when it is least useful – when the problems seem so large and so vivid and are the cause of significant corrosive stress.When managers, groups or teams spend their time thinking about their most challenging problems, they tend to become dispirited and demotivated. When you help your clients do the opposite, however, you will become a scarce resource: the route to a better place.John Kennedy is a strategic advisor. He has worked with leaders and senior management teams in a range of organisations and sectors.

David Lucas explains how businesses can access funding and trade through the COVID-19 crisis.The COVID-19 pandemic has impacted businesses throughout the country. Cash flow is scant, debt is mounting, and many companies have yet to resume trading in any meaningful way. Those that are trading again have returned to a desolate and unfamiliar environment. Shops and high streets are empty, many stores remain shuttered and, with further restrictions in the pipeline, dented consumer confidence in certain sectors looks unlikely to rebound fully until a vaccine is developed.SME supportsWithout access to significant cash reserves, liquidity and cashflow are critical concerns for many small- and medium-sized enterprises (SMEs). Fortunately, SMEs adversely affected by the COVID-19 crisis can access a range of Government supports. The schemes listed below have been well-received by business owners, but preparation is the key to a successful application.SBCI COVID-19 Working Capital SchemeThis scheme offers loans from €25,000 to €1.5 million at a maximum of 4% interest to SMEs and small mid-cap enterprises. Applicants must meet at least one criterion related to the impact of COVID-19 on their business and one innovation criterion as per the European Investment Fund’s (EIF) standard conditions. No security is required on loans up to €500,000.Future Growth Loan SchemeThis scheme aims to make up to €800 million in loans available for terms of seven to ten years to SMEs and small mid-cap businesses. Loans range from €25,000 to €3 million per eligible company, with loans up to €500,000 available without security. The initial maximum interest rate is capped at 4.5% for loans under €250,000 and 3.5% for loans more than or equal to €250,000 for the first six months. The rates after that are variable.Sustaining Enterprise FundSupport of up to €800,000 can be provided to eligible companies that have been negatively impacted by COVID-19. Funding will be provided for five years using repayable advances, grant aid, equity, or loan note, comprising a combination of repayable and up to 50% non-repayable support. Administration fees on repayable support will be 0% over the first six months and 4% per annum after that. Repayments will be due in years four and five.Restart Grant PlusRestart Grant Plus is an expansion of the Restart Grant scheme. It provides grants of €4,000 to €25,000 to businesses with 250 employees or less, turnover of less than €100,000 per employee, and a 25% reduction in turnover as a result of COVID-19.Trading Online VoucherGrants of up to €2,500 (with 10% co-funding from the business) are available to companies with ten employees or less seeking to build an online presence. The voucher is targeted at small businesses with little or no online presence, turnover of €2 million or less, and at least six months’ trading history.Business Continuity VoucherBusinesses employing up to 50 staff are eligible to apply for a Business Continuity Voucher to the value of €2,500 towards third-party consultancy costs to assist with developing short- and long-term strategies to deal with the COVID-19 pandemic.Pandemic Stabilisation and Recovery Fund (PSRF)The PSRF is set up to invest in large- and medium-sized enterprises employing more than 250 employees or with annual turnover of over €50 million. Enterprises must be able to demonstrate their business was commercially viable prior to the COVID-19 pandemic, and that they can return to viability and contribute to the Irish economy. Investments are made on a commercial basis and they will seek a return for this and can invest across the capital structure, from equity to debt.Temporary Wage Subsidy SchemeBusinesses have also relied on the Temporary Wage Subsidy Scheme (TWSS), which was replaced by the Employment Wage Subsidy Scheme (EWSS) in September. The main elements of the EWSS are as follows:A €203 flat-rate subsidy per employee per week for businesses with a decrease in turnover of 30% or more;Employers in all sectors may qualify, subject to meeting certain qualifying conditions; andThe EWSS will expire on 31 March 2021. The legislation, however, provides that it may be extended beyond that date.CashflowThe measures above can provide critical relief and cash support to businesses. However, there are other proactive and straightforward ways in which companies can meet their liquidity needs before repayment moratoriums expire in Q4.Businesses can optimise by selling slow-moving stock to generate cash, for example. Also, debtor management might sound obvious, but assets can become tied up and the longer a debt remains unpaid, the less likely it is to materialise.Debt fundingMany people talk about loan-to-value and property, but at the end of the day, cash repays debt. Property and asset values are significant from a security perspective, and the banks draw comfort from having this as security. However, in recent years, cashflow (and its recurring nature as the first port of call in servicing debt) has been increasingly analysed. Banks are not in the business of selling companies or property unless they have to, but they do need to see cash being generated to service the existing debt quantum.In this volatile business landscape, SMEs may need to renegotiate covenants or restructure debt. Many businesses will find themselves over-leveraged and unable to make their debt repayments as they fall due. Banks expect this in cases where COVID-19 has hit businesses hard, but the key to success is open communication with the bank or funder.Think of it as a partnership approach. Businesses must be extremely well-prepared as approaching a bank can be painstaking and time-consuming. That said, they do understand the position you are in; all business owner/managers want to be able to pay down debt and keep their businesses alive.The standard suite of bank covenants comprises leverage (net debt/EBITDA), interest cover, and debt service cover ratio (DSCR), with the latter often proving the most difficult to manage. As a result of existing trading circumstances, all three may have been breached or be approaching a breach. The banks have provided moratoriums in many cases, but they will need to be looked at and renegotiated as they expire later in the year.The amortisation or repayment profile on debt may also need to be readjusted to match the company’s ability to repay. COVID-19 has devastated many businesses, and some may never return to the same trading levels as before. This outcome would, therefore, require a re-calibration of amortisation; back-ending or reducing it may be the only option. Banks will likely begin to pursue ‘cash sweep’ mechanisms to reduce debt positions in a restructure. Cash sweeps can be administratively cumbersome but show the bank that you intend to work with them to pay down debt.Meanwhile, businesses seeking access to further funding must become familiar with the various options available. Alternative lenders can be less onerous in terms of covenants. They tend to lend a little bit more than the traditional banks and offer increased flexibility, but they also charge higher interest, often as high as 7%.Invoice discounting, where banks lend based on an entity’s debtor book, has also become a popular form of lending from a working capital perspective. It gives the lender increased security, as they have direct access to the debtor book. The facility limits can also grow concurrently with business growth.Private equityEquity is another potential option for SMEs in need of a capital injection. This route has become increasingly popular in recent years, as investors provide experience and growth potential as well as capital.Many business owners are apprehensive about trading a piece of their business, but it is always better to own 70% of a thriving venture than 100% of a failing one.ConclusionOpen communication is crucial at this uncertain time. Lenders understand the position many businesses are in and will expect requests to pay down debt at a slower rate, given that earning profiles may have changed. The key to success, however, is organisation and planning.Seven tips for approaching a bank during a crisisSeek expert advice. A skilled and experienced adviser will know what the bank and its advisers want and will be able to communicate this effectively.Accept the situation. Look for the positives and work with the advice given to you to identify areas for improvement in the business. Listen to recommendations and have robust discussions about solutions.Be honest. A bank likes certainty and predictability. These are uncertain times, so work with the bank and do your best.Prepare a deliverable plan. Create a budget that is real and deliverable, with actions and assumptions clearly laid out. Communicate. Deliver the information clearly and precisely to reduce the potential for misinterpretation and confusion. Don’t ignore the bank and hope that the problem will go away.Prepare. Talking to your bank can be a very confronting and stressful process. Be prepared for hard questions, and don’t take it personally.Have back-up plans. Speak to your adviser about alternatives in the market, be it a direct lender or private equity investment.David Lucas FCA is Corporate Finance Partner at PKF O’Connor, Leddy & Holmes.

John Convery discusses the important elements when creating a start-up and how you can improve its chances of success.Entrepreneurship is actively promoted and regularly encouraged. Being a business owner can be very fulfilling but starting a business is no easy task. This is a journey where you will meet a rollercoaster of highs and lows. It is a challenging, demanding, frustrating, testing, isolating, lonely, long road on the way to – hopefully – profitability and success.Research suggests 20% of start-ups fail in year one, just under 50% make it to year five, 66% have failed by year 10, and by year 15 only 25% are still surviving. Some businesses deemed to survive merely limp along for years, often referred to as 'the living dead'. However, with the right planning, mindset, and funding, improving start-up survival rates is achievable.Why start-ups failThere is a myriad of reasons why start-ups fail. In my view, it is usually due to a combination of factors rather than just one. Figure 1 summarises the most common reasons start-ups fail. They are broken into four areas:  market, founder, finance and other.Improving your chances of successTo improve your chances of having a successful start-up, you must get some fundamentals right.Sell a product/service that customers want A key reason start-ups fail is because there is an insufficient market need for the product or service. This can be mitigated through focus on the customer from the start. You must be customer-centric before you build, design, or develop anything. Take the time to put your ideas down on paper, and then go out to customers.Talk to potential customers or users, listen to them, try to identify their biggest pain points or struggles. Do market research.Build a basic, early version of the product.Go back to some potential customers, get their views and feedback.Refine, modify and enhance your product based on the feedback. Go back to potential customers again, get their views and any further changes or improvements needed.Enhance your product again.It is only with constant feedback and user reaction that you can improve the product and arrive at a point where it can begin to appeal to potential customers. It is a test and feedback loop. After the testing is done, you will begin to get a feel for a business model and pricing.Create a balanced teamFind good people with complementary skills who gel with one another – preferably a designer, engineer and marketeer. Teams build companies, not individuals. Investors also want to see a team, not a single founder.Control cashflow tightlyIt’s the job of the main founder or appointed finance person to make sure the company does not run out of money and to control finances tightly.Write a business plan The process of writing a business plan is not an academic exercise, it is a validation exercise on the product and overall business. The business plan should corroborate whether the product and overall business has potential. Appoint a savvy external business mentor or adviserTheir role is to ask hard questions, challenge you, objectively evaluate progress against targets set and hold you accountable. This person should not be a close relative or friend.Is entrepreneurship right for you?Creating a start-up is not for everyone. Like any career choice, not everyone is cut out for certain roles. It may not suit your interests, temperament, passion, or skills. The requirements or skillset for an entrepreneur are not specified, yet the skills required to be successful are rarely discussed other than in academic textbooks.Your character and resilience will be severely tested in a start-up, especially in the early stages. Delays, disappointments, criticism, rejection, frustrations, travel, endless presentations, knockbacks and 80-hour weeks with little pay is what a founder is facing. Fundraising is arduous, where it can take six months of meetings, calls, presentations and visits to secure investment. This takes a toll on you mentally and physically, and your ability to face these knocks and challenges while remaining optimistic is difficult. Successful entrepreneurs show some essential personality characteristics such as patience, an ability to listen, learn, accept criticism, and stay positive. They are a people person, and able to get along and deal with all types of individuals. Failure does not defeat them, and they learn from mistakes. They can take things in their stride and are willing to adjust or pivot when required. Successful entrepreneurs possess drive, ambition, and determination.Anyone who might be considering creating a start-up should do some self-examination as part of the planning. They need to ask themselves honestly if they have some or any of the requirements that an entrepreneur needs to have. Ask yourself questions such as:Do I have that entrepreneurial drive and determination?Am I cut out for this?Why do I want to start a business? You should only start a business for the right reasons. Self-indulgence, fulfilling a dream and pleasing someone else are not valid reasons.You fail and you learnThe aim of a start-up is to solve a problem for a customer. The customer comes first. Your starting point is talking to customers, discovering their pain points, and then using that feedback.If you are not getting good market traction, be prepared to pivot and change. If the business is still struggling to get off the ground, be prepared to disengage. This can be a difficult decision but necessary. You can always start again. Remember: you will pass failure on the way to success. A failed start-up is a valuable lesson. You fail, you learn, you start again and you do things better.I believe it is possible to improve start-up survival rates with good planning, the right mindset, and a funding plan. If your product/service is good enough, you will always secure funding. While the risks of failure in a start-up are high, the entrepreneurial spirit will nevertheless always be alive.John Convery FCA is a business adviser to start-ups and small businesses.

Chartered Accountants in practice have had a lot to contend with over the last six months. Here, they share the lessons learned from the challenges faced during the COVID-19 pandemic.Chartered Accountants and their skills have been at the forefront of business during this pandemic, ensuring that businesses across the island of Ireland – including their own – continue to stay afloat. In this feature, three Chartered Accountants describe what challenges they and their clients have faced during the COVID-19 crisis.Members in practice, Conor Woods from Woods & Partners, James Kelliher from Kelliher O’Shea and Wendy Merrigan from Williams Merrigan share their insights on current business challenges, the lessons they have learned during the pandemic and what the future holds for SMEs. Meeting adversity with growthConor Woods FCA, Managing Partner at Woods & Partners, outlines how technology and innovation have enabled him and his staff to keep the business running through the COVID-19 crisis.QHow has your business been impacted by the COVID-19 crisis?Initially, it was a shock to the system for everyone. However, we have invested heavily in our cloud platform over the last five years, so we were able to adapt to remote working relatively seamlessly. The greatest initial challenge was not having a ‘physical' closing meeting with our clients nor being able to have team meetings in the same format we were once familiar with. What is the most challenging aspect of leading a practice in this environment?On-boarding new staff is the most challenging aspect of growing a firm in the present environment. We have hired 12 staff in the last three months and it's challenging to integrate, train and induct them into an organisation where ‘normal office conditions’ do not prevail. The strength of our profession is in the quality of the training that our articled clerks receive in practice, so we must ensure that this training continues to the highest of standards in the current social distancing climate. We have been lucky our size enables us to continue this training which has proven to be a key attraction for high calibre graduates to come to our firm.What business changes have you made to ensure that you continue to deliver for your clients?Due to growth across our practice, we have recently opened new offices in Laois and Cavan to meet client and market needs in these locations. Clients want premium advisory, audit and taxation services close to their businesses without having to travel to Dublin and so we see this as a key opportunity. Additionally, more and more of our staff do not want to commute, so having regional locations helps us with staff retention and attracts a high calibre of staff from the city and larger firms. If you could make one change to the supports available for your clients, what would it be?We would like to see an expansion to the Local Enterprise Office Business Continuity Voucher scheme for another six months for SMEs. This proved to be a hugely supportive and popular scheme for them. What does the future hold for small- and medium-sized accountancy practices, in your opinion?The future is bright and exciting for firms who innovate and continue to re-invest in people and technology. It’s critical that firms maintain financial liquidity and strength to enable them to hire the best and invest in technology within their practices. The firms that have strong technology platforms have found it easier to adjust to the enforced changes in work patterns. I see smaller firms engaging in more collaboration with each other due to increased regulation and, perhaps, more consolidation in this space. As a practice leader, what has been your most important lesson to date?It’s just as important to work on the business as it is to work ‘in the business’. Practices must manage working capital, lock up, and liquidity relentlessly. This is now more important than ever before. This can be difficult as our clients, may want more leniency in terms of credit, support, and time in the present environment, so there is a fine balance to be achieved. Managing client expectations and our own business performance is a pivotal aspect of our own practice strategy.Adapt and be flexibleJames Kelliher FCA, Partner in Kelliher O’Shea, Chartered Accountants, has found that flexibility with staff and clients has been key to navigating business changes that have cropped up because of the pandemic. How has your business been impacted by the COVID-19 crisis?As a small accountancy practice, we offer a wide range of services. We provide bookkeeping services to a number of businesses in the hospitality sector which was impacted severely. We have a diverse client range across many sectors from hospitality, media, motor trade, retail, nursing homes and agriculture who all had various challenges and continue to do so as we work through the crisis. Our workload, in terms of dealing with client queries, increased dramatically, especially around the introduction of the Temporary Wage Subsidy Scheme (TWSS) and other government supports. What is the most challenging aspect of leading a practice in this environment?There has been a level of disruption to both the practice and client business which has had a knock-on effect on the timing and delivery of work. The business disruption will have an impact on filing deadlines being met later in 2020 and this will be an issue for our staff and clients in an already demanding year. What business changes have you made to ensure that you continue to deliver for your clients?Although our office was closed for a period, we were still very much accessible throughout for our clients by phone, email and Zoom/Microsoft Teams. We also facilitated some of our staff with young children to work shorter hours. Our audits have been conducted remotely this year; previously, we would have carried out the fieldwork for our larger clients on-site. We have had to be flexible with our clients and cognisant of the fact that some of their finance personnel were also working shorter hours with an enhanced focus on their short-term cashflow management.If you could make one change to the supports available for your clients, what would it be?For many small businesses, funding during the current crisis has not been easily accessible. While the TWSS and Restart Grant were successful, many small businesses failed to secure additional short- or medium-term facilities from their lending institutions as a result of the uncertainty surrounding the crisis and the impact it was having on current trading levels. We would have liked to have seen a simplified, low-interest government loan or capital grant made available for PPE expenditure, which was significant for many SMEs in reopening. What does the future hold for small- and medium-sized accountancy practices, in your opinion?We believe there will be further consolidation within the industry among small- and medium-sized practices. This trend had started pre-COVID-19. The talent pool for small practices was at an all-time low because of the larger firms attracting the majority of graduates to the cities. Consolidation should enable practices to attract better people and possibly offer a more attractive work-life balance that people crave. Smaller practices need to continue to invest in technology and their people, and use technology to move towards a paperless environment. The current crisis has highlighted how reliant we are on technology.As a practice leader, what has been your most important lesson to date?The ability to adapt and be flexible is key to leading our practice and being able to advise our clients. This has never been more prevalent than in the current COVID-19 climate where guidelines that impacted on both decisions that needed to be made for the practice, as well as advice given to our clients, were evolving on a weekly and sometimes daily basis.Focus on positive actionWendy Merrigan FCA, Co-Founder and Director at Williams Merrigan, has seen the workload in her practice increase in the last six months, but believes opportunities are there for accountants who concentrate on serving clients’ needs.How has your business been impacted by the COVID-19 crisis?We have a small team and the level of queries regarding COVID-19 issues has been overwhelming. This has led to a slower turnaround time for some work which has its own impact as we approach large filing deadlines later this year. While working remotely was used by our practice for several years, COVID-19 meant some staff no longer had childcare facilities and had to home-school children for a period. Ensuring staff did not take on too much work and balanced their homelife with their need to provide ongoing quality, timely service to clients, specifically regarding tax filing return deadlines, was a specific challenge. Right now, it is unknown what will occur during winter months regarding schools and this is stressful for staff. What is the most challenging aspect of leading a practice in this environment?Staying on top of the ‘normal’ workload as well as managing client queries. A serious challenge has been planning and scheduling work while also finding time to keep up-to-date with Government and legislative changes as they arise to ensure clients are kept informed. This increased workload has meant I have had less time as I would like with staff members.What business changes have you made to ensure that you continue to deliver for your clients?Responding to email and telephone queries proved highly challenging. For some queries that arose, it became more practical to share information generally by way of email or, in certain circumstances, on social platforms. This has meant less time repeating answers to queries that many clients have. Sharing knowledge with other accountants and making new connections to discuss the impact of COVID-19 on our profession has been beneficial also.If you could make one change to the supports available for your clients, what would it be?Grants have been made available to review cashflows and financing, yet necessary ongoing compliance costs for accountancy services were not included. I would have granted subsidies to businesses to allow their usual monthly or yearly fee to be included in the grants awarded. Ensuring clients have tax clearance for subsidies and grants mean accountancy services were vital for all businesses yet not provided for.What does the future hold for small- and medium-sized accountancy practices, in your opinion?Regardless of size, I believe we are fortunate to have a qualification whereby our services, expertise and advice are continuously sought and needed. Our practice is small yet, as I mentioned, there are always opportunities to be found when you are laser-focused on serving client’s needs. I believe services will always be sought from proactive accountants with good communication skills.As a practice leader, what has been your most important lesson to date?I've realised uncertainty can be positive and have learned to let go of the need for control. Inspiration and creativity come from not being rigid in views or practices. It's important to move with the times and learn to embrace new working environments and social networking platforms to serve client needs efficiently. Above all, the most important lesson has been the realisation that uncertainty is neutral; we can continue to focus on positive action.