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.

Julia Rowan answers your management, leadership, and team development questions. Q. I did really well at the beginning of the lockdown, but it’s beginning to feel like a struggle. We worked hard before, but COVID-19 has added at least 15% to our workload. I’m trying to remain positive and upbeat with my team, but I feel I’m running on empty. There is so much in this short question – the pressure to be positive, the desire to mind your team. And I appreciate how important it is to be positive, but what kind of positive? Leaders often want, with great intention, to protect their teams – from negativity, from too much work, from politics. The problem is that the leader then takes on the dual burden of protecting and being positive. That’s exhausting. You manage a team of adults. Trust yourself to be real with them. You don’t want to be relentlessly negative (‘everything is awful’), but unrealistic positivity (‘everything is awesome’) is not doing anyone any favours. You can be positively realistic (‘it’s harder with COVID-19, let’s talk about how we cope with that’). Not having to pretend will allow you to show up more authentically, and that gives permission to others to be authentic. I generally find that when teams are allowed the space to express how difficult things are, they find solutions and ways forward. Not having to pretend releases creativity. By being realistic, you have not stopped supporting the team – you are supporting them in a more useful way. I’m a huge fan of journalling to become aware of our drivers and then put them to good use. Positivity, perfectionism, and people-pleasing are drivers I come across all the time. Becoming more conscious of them helps us to channel them more usefully. Q. An experienced member of my team continually asks for direction. The quality of their work is good, but I have to spend a lot of time briefing them, checking, and so on. I’m not sure how to address this or whether I should just let sleeping dogs lie. My first response to this question is to ask whether your team member’s need stems from their ‘will’ (confidence, motivation) or their ‘skill’ (ability). You tell me that the quality of their work is good, so my guess is that their skill is okay, and the issue is confidence. There is also the possibility that they are simply in the habit of asking you. The next time this person asks you for input about a task, engage in a different kind of conversation and provide a different kind of support. Ask questions that allow them to access their knowledge and experience and build on their strengths and achievements. If there is a genuine lack of confidence, be sure to reassure and give positive feedback. You need to prepare for this because on a busy day, it’s very easy to get bounced back into the usual way of doing things. Write out some good questions in advance. I often advise leaders to respond carefully when asked a ‘How do I…?’ question and reflect on what the person asking the question truly needs: is it advice, confidence, or permission? Julia Rowan is Principal Consultant at Performance Matters, a leadership and team development consultancy. To send a question to Julia, email julia@performancematters.ie   

Meet Niall O’Grady, the new face at the helm of Ireland’s largest peer-to-peer lender to SMEs. Linked Finance, Ireland’s first and largest peer-to-peer lender, can offer borrowers decisions on loans of up to €250,000 less than 24 hours after receiving their documents. This astonishing speed has been achieved through a combination of the lender’s systems and ethos and its inclusion as a lender under the Government’s COVID-19 Credit Guarantee Scheme. “We offer an alternative to the main banks,” Linked Finance Chief Executive Niall O’Grady explains. “Because we are smaller, we have to be better. We’ve got to have a simpler process and make faster decisions. The Credit Guarantee Scheme also gives Linked Finance not only the endorsement of one of the main Government support schemes to SMEs, it also allows us to offer more competitive rates in the market. Ultimately while this helps, we must still strive to be the best at customer service.” The company has been providing finance to Irish SMEs since it was set up in 2013. Its business model sees retail savers and investors and financial institutions put money into Linked Finance, which the lender then filters out to good-quality SME loans. “The business was trading and growing very successfully over the years until we hit a bump in the road last year,” O’Grady notes. “The appetite for debt among SMEs reduced considerably as a result of the COVID-19 pandemic. Our business halved between 2019 and 2020, and our objective now is to get back to 2019 levels. We have already seen a strong rebound this year. That’s been helped by a couple of things. Being approved as a lender for the Government’s COVID-19 Credit Guarantee Scheme was a major boost. 80% of the loan is guaranteed, which helped us reduce our rates and become more competitive. It’s been fantastic, and the response from customers is great.” The other driver is service. “As the new guy, when I arrived, I spoke to many of our customers over the last few months. They told me that they are often very disappointed with the pace of decision-making from some banks and the complexity of their process. So, an alternative like Linked Finance that simplifies the process and makes decisions quickly fills a gap in the market.” The company lends to a broad spread of sectors, including retail, manufacturing, professional services, solicitors, accountants, wholesalers, car dealerships, and much else besides. “Professional services firms make up the second-biggest category of SME lending for us,” O’Grady elaborates. “Also, 50% of our business comes through the partner channel – accountants, business advisors, brokers. The other half comes directly from customers who apply by phone or online. They come to us because we offer a faster, simpler process and a better service. we see both sources of business growing strongly in the coming years.” Non-bank lenders may be unusual in Ireland but are quite common overseas, he adds. “Ireland is pretty unique in that more than 90% of SMEs here still go to the banks for finance. In Europe, non-bank lenders have grown faster and can account for more than 30% of the market. Ireland needs more alternatives, particularly now that Ulster Bank has announced its exit. More competition in the market requires more traditional bank and new non-bank lenders. The country is only starting on that journey, and Linked Finance is well-positioned to play a big part in that.” The loan application process could hardly be more straightforward. “We only look for three pieces of information – accounts, bank statements, and evidence of tax compliance. If we have any questions, we get back to the borrower straight away. Our credit committee meets daily to facilitate quick decisions.” He points out that the application has almost invariably gone through a fairly rigorous assessment process before it gets to Linked Finance. “A lot of SMEs in Ireland are family-owned, and business opportunities tend to have been discussed long and hard before deciding to look for a loan. They are agile businesses, and they expect their financial services partners to be agile in process and decisioning. We have partnerships with accountants and brokers throughout the country. They tend to add value to the application’s quality with well worked out propositions and well-made business cases. They deserve a simple process and a fast decision.” On the topic of accountants, O’Grady highlights the crucial importance the profession plays in supporting business owners with all aspects of managing their business and helping them access finance. “Growing and deepening our partnerships with business advisers is a key part of how we will grow the business in the next three years. These professionals know the businesses and their owners inside-out and are in a great position to advise their clients on how to source finance to meet their needs.” Decisions are not always positive, of course. “We may offer a smaller amount than sought or advise the applicant to come back in six months when they’ve strengthened the business or displayed greater evidence of ability to repay. What we don’t do, however, is string this out over several weeks. Accountants and their SME clients deserve fast feedback.” Interest rates on loans have come down significantly of late. “Our rates start at 4.75% for A-rated lowest risk loans and average out at 7.75%. That is almost 1.5% lower than six months ago, and the Credit Guarantee Scheme has certainly helped there.” Over the years, Linked Finance has advanced €150 million in loans to 4,000 SMEs around the country, with the money coming from a mix of private and institutional investors. “Thousands of people give us their money to invest in SMEs. They invest anything between €150 and €20,000 with us, and the average is just under €1,000. We also have institutional investors such as European banks who invest with us. Our retail investors and savers are very loyal and are committed to supporting Irish businesses to succeed. This gives us a very stable line of funding.” According to O’Grady, peer-to-peer lending can also give people a personal connection to a loan, which can be quite powerful. “People can invest with us in one of two ways. The first is known as ‘auto-bid’, where the investor selects the loan category they wish to invest in and the term. We divide loans into quality categories, and loan terms can vary from one to five years. In an auto-bid scenario, the investor’s money is allocated automatically when the specified loan type arises. That gives the investor a personal connection to the business, and they can keep an eye on its progress if they wish. “Some people put money on the platform and wait until an exact proposition comes up. They then bid for that, but we are finding that more and more investors are using the auto-bid facility,” O’Grady adds. But there is more in it than just a good feeling for investors. “People like to see their money doing good. They are participating in the growth of small businesses and supporting Ireland’s recovery. They also get a superior rate of return, up to 5% or 6% depending on the SME’s performance. As you can expect, there is a level of risk to their capital if a business defaults on their loan, but it is a fantastic proposition to get a good return and help out the local community these days.” Niall O’Grady is Chief Executive at Linked Finance.

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.

In the wake of the Davy scandal, Cormac Lucey identifies four urgently required changes for Ireland’s regulatory system. The scientist Max Planck said that science advances funeral by funeral. In his 1950 autobiography, he explained, “A new scientific truth does not triumph by convincing its opponents and making them see the light, but rather because its opponents eventually die and a new generation grows up that is familiar with it.” If science advances funeral by funeral, how fast does corporate governance progress? The implication of Planck’s aphorism is that old leopards don’t change their spots and cannot be taught new tricks: if you don’t like your leopard, you must get rid of it or, if the leopard is protected by employment law, issue it with a P45. In Ireland, corporate governance advances P45 by P45. I am sceptical of the notion that revised organisational guidelines and regular attendance at corporate governance updates achieve much. If you have to regularly teach staff the difference between right and wrong, it begs the question: are you working with the wrong people? There is a lot of common sense in a popular maxim from Charlie Munger, the sprightly 97-year-old who jointly leads Berkshire Hathaway together with the merely 90-year-old Warren Buffett. Munger said: “Show me the incentive, and I’ll show you the outcome”. What are the incentives in Ireland? Consider the recent scandal at stockbrokers, Davy. This concerned a case where 16 key staff members purchased bonds in the then defunct Anglo Irish Bank in 2014 and concealed this fact from the vendor, who had commissioned Davy to get the best price possible for the thinly traded bonds. The bonds were sold by the vendor for 20.25 cent in the euro, realising €5.6 million. If they were held until maturity – when they were repaid in full – they would have generated gross proceeds (before funding and legal expenses) for the Davy insiders of €22 million. The maximum fine the Central Bank may issue for regulatory infractions is just €10 million. And the fine administered in this case was only €4.1 million. This raises serious questions about the design of our regulatory system. That the Davy executives who profited from this deal will have seen the value of their part-ownership of the brokerage firm drop considerably was a merely coincidental side effect of the whole process. It seems to me that several changes are urgently required: The maximum fine for a regulatory infraction should be a multiple (five to ten times) of the gross gains made. Where possible, fines should be levied on individuals rather than on firms. Those who have acted improperly in the past should not continue to be employed in senior roles or hold large ownership positions at financial services companies. We should financially incentivise whistle-blowers, like in the USA. There, a whistle-blower can claim a share of the wrongdoer’s loot. Bradley Birkenfeld, an ex-banker, was paid $104 million by the Internal Revenue Service for exposing his former bosses who had helped US clients hide money in Swiss bank accounts. If we can’t rely on people always being honest (and we can’t), then let’s change their estimate of where their self-interest lies. A low-cost regulatory system focused more on incentives and occasional but vigorous action aimed at wrongdoers can replace today’s expensive system, which is built on detailed rules and extensive box-ticking that largely focuses on the already compliant. Cormac Lucey is an economic commentator and lecturer at 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.

One of the few silver linings of this pandemic, according to Dawn McLaughlin, is the evolution of leaner businesses that are better positioned to serve their customers.  I am always amazed at the resilience and determination of our business community. History has demonstrated our resolve over the years with businesses trading through all types of adversity. At every turn, we dusted ourselves down and got straight back to serving our customers and community. No matter what we faced, and there were some desperate times, we worked through them. It took a pandemic to stop us in our tracks. It therefore came as no surprise when a recent survey carried out by the Londonderry Chamber of Commerce revealed that 72% of members were optimistic about the future. Despite being in lockdown and having no clarity on the lifting of restrictions, the Chamber’s members see better days ahead. This was further brought to the fore at my recent President’s Lunch when the level of positivity was palpable. While the short-term challenges were acknowledged, the opportunities in healthtech and fintech beginning to bear fruit were noted together with the creation of spinouts from the collaboration between local health and educational establishments. So, what is there to look forward to? And how do we get out of the current situation? It is that entrepreneurial spirit that keeps shining through. Avoid the temptation to wallow in the problem; instead, look for the solution. And we have plenty to build on. There is pent-up demand in the market, surplus funds held by some, and financial assistance in the pipeline to kick-start the high street. For innovative and ambitious businesses, alternative and export-led markets are waiting to be explored. Invest NI is ready and willing to assist businesses with creative ideas and export potential. Traders who survive the pandemic must be poised to take advantage of the opportunities ahead. During the lockdown, owner-managers took a hard look at their business and made necessary changes. The fat has been shed and processes refined. We have leaner businesses that are better positioned to serve their customers in a more streamlined and efficient manner. When we look to the northwest, we see tremendous opportunity for the years ahead. Based on four pillars that span everything from tourism and digital innovation to employability and health and wellbeing, the City Deal will help create a thriving and prosperous region with equality of opportunity for all. It will also further cement the northwest as a top area in the United Kingdom and Ireland to set up a business, acting as a regional hub of enterprise and entrepreneurship that fosters innovation and development. All this, coupled with existing strengths like the high quality of life and low cost of living, makes the northwest more attractive than ever to foreign investors, start-up companies, entrepreneurs, students, and families looking to relocate. The recent government funding to support the vital air route between City of Derry Airport and London Stansted also helps keep our region connected to crucial business hubs across these islands. This, together with the A5/A6 upgrade, are vital factors for companies looking to invest in the northwest. Now is the time to look ahead to the future with confidence – a future that looks increasingly bright. Dawn McLaughlin is Founder of Dawn McLaughlin & Co. Chartered Accountants  and President of Londonderry Chamber of Commerce.

PwC Northern Ireland’s Emma Murray explains why she’s looking forward to returning to work in the firm’s brand new nine-storey headquarters and helping local businesses get back on track. Coming back to work after having my baby to a world that had been transformed because of COVID-19, of course I found that so much had changed. But what will always be the same is the importance of actually being together, and I can’t wait until we are,” says Emma Murray, Audit Partner at PwC in Northern Ireland. And in a few short months, Emma will be joining her colleagues in Belfast as the firm opens new headquarters in the city centre, a multi-million-pound investment by the UK firm that underlines its commitment to local talent and businesses. “Merchant Square is a transformative investment because we’ve been focused from the start on ensuring that collaboration will be at the heart of everything we do, from our people to our clients and our Place & Purpose partners,” says Emma. “After a year of being apart, we value more than ever the impact of working together, the spark of conversation that sets ideas flowing. In audit, one of the most important things we do is support the training and career development of our teams, and that happens best in person rather than over a video call.” The way PwC supports its staff is front and centre in its new headquarters. For a start, the nine-floor building will have a dedicated wellbeing space fitted with meditation pods, space for exercise classes like yoga and pilates, and treatment rooms to accommodate manicurists or physiotherapists. It is also evident in how it has further invested in its people through the Digital Academy programme, which trains participants in new technologies focused on data analytics, visualisation, and automation. “It’s hard to know how we would have managed the last year without technology. If there were any questions about the sense of investing so heavily in technology before the pandemic, there isn’t any more. The firm was ahead of its time in understanding why staff needed access to the best technology, to the point where we were able to pick up our laptops on the last day in the office and start working from home almost seamlessly,” Emma adds. “How we audit has changed as a result of COVID-19. As a result of the technology holding up so well, we have been able to conduct audits remotely. It was a culture shock in many ways at the start as there was always such a heavy reliance on being present at a client site to validate source documents and be close to client teams. But we’ve been able to demonstrate how we can do much of this through secure online portals for collecting client data and information and connecting with group teams worldwide where there would have been an expectation for a physical visit to overseas locations. However, as the saying goes, nothing beats being there – but at least we have developed a way of working that gives us more options and, indeed, more flexibility. “For years, we innovated how we audit, using smart technologies to extract data remotely, to analyse it, and to enable our clients to drill down into it where appropriate. We always look for new technology-enabled solutions, but we’ll never underestimate the importance of having the very best-trained people to be in charge,” Emma continues. The firm often states that its most important asset is its people, which is very clear as it prepares for a return to the office. Surveys have revealed that, while some firms are transitioning to a permanent ‘work from home’ culture, PwC staff plan to use the office between two and four days a week. “There’s a culture that people embrace in the firm. I’ve spent my entire career here, so clearly there’s a lot to commend it. But it’s been incredible how much focus has been placed on supporting each other during this time. The leadership recognises mental health as a business-critical issue; if we’re not healthy, how can we be effective? So we’ve had things like a year-long subscription to a mental health app, firm-wide live streams to discuss resilience and topical issues that impacted people over the year, and access to mental health counsellors through our health plan,” says Emma. “We also created a way that empowered people to take time out during lockdown if they had caring responsibilities, with a new time code. Things like this, which people spent much time researching and developing, spoke volumes to our people about how they were valued,” she continues. “In many ways, I’m not surprised at all. I was promoted while I was pregnant, which would be unexpected in many other places. But it was never a problem here. So far from feeling like being in the office is a drag, I see people who look forward tobeing back with colleagues and friends, particularly in our brand new headquarters.” In recent weeks, PwC revealed that Northern Ireland is the best place to live and start a business, according to the Future of Government survey of 4,000 people in the UK. The team, led by Kevin MacAllister, is working with companies of all sizes in the local market. According to Emma, getting the next couple of years right for business is the most important thing the firm can do. “I became an accountant because I was inspired by our entrepreneurs, and I still am. I’ve been there with the owners who have faced difficult times, and I admire the passion to turn it around. I love to see businesses bring in fresh things, new money, nurture talent – helping to make it a good place to live and work. For me, it’s much more than a job. It’s personal.” Emma Murray is Audit Partner at PwC Northern Ireland.