Next 3 years critical for CEOs across the world
Accountants need to adapt to the great changes in the macro and micro environments in order to meet the challenges that their clients are facing. They need to integrate technology into their day-to-day work and need to be innovative in attending to clients’ demands whilst keeping an open mind to different cultures and professions.
In this respect five risks that the accounting profession will face were identified by a top international expert.
Lawson Carmichael, Executive Vice President – Strategy, and Innovation, Association of International Certified Professional Accountants, addressing the audience at the CIMA Corporate Partners Summit in Colombo this week on what the association is, what it plans, what the future of the profession looks like and benefits to the corporate said that geopolitical instability, technology and cyber issues, work force changes, regulatory complexes and financial challenges are what accountants need to be mindful of.
Brexit, President-elect Donald Trump’s victory and the rise of populism are geopolitical risks, he said noting that drastic change in technology was said to have accelerated problems in geopolitical stability. “All these are delivering instability in a different way.”
The financial sector is particularly vulnerable to both known international cyber criminal groups and emerging home-grown hackers and Mr. Carmichael added that technology and cyber issues are real challenges.
The Fourth Industrial Revolution (FIR) has created a record amount of new global risks as well as worsen existing problems, according to analysts. Artificial intelligence (AI) and robotics were found to pose the greatest danger over the coming decade, Mr. Carmichael said.
Increased reliance on AI will dramatically exacerbate existing risks, such as cyber, making the development of mitigation measures just as crucial, he added noting that AI will enable workforce changes as well. “In 20 years, 65 per cent of the children will be doing jobs that we don’t even know.” Accountants, he said must cope with different regulatory approaches concerning digitalisation.
The financial challenges will be the slow economic recovery, Mr. Carmichael added. The next three years will be more critical for CEOs than the past five decades, and that four out of 10 CEOs will transform their companies into significantly different entities in the next three years. “CIMA is trying to enhance the audit quality of finance around the world by embracing technology, redefining learning and expending our platforms.”
Arul Ramanan, MESANA Regional Board Member, Association of International Certified Professional Accountants and Managing Director of Hayleys Power and Energy Sector and Hayleys BOP and Venkkat Ramanan, Regional Vice President, Asia Pacific – Management Accounting, Association of International Certified Professional Accountants spoke on objectives, collaborative areas and opportunities for value creation through corporate partnership.
With its inception in 2007, the CIMA Corporate Partners Programme has facilitated greater employment opportunities for students and members, mentoring future leaders, supporting innovation in the accounting profession and the fostering of greater insights and dialogue amongst the country’s business community, they said noting that this year is of particular importance as together with their joint venture partner the American Institute of CPAs (AICPA), CIMA formed the Association of International Certified Professional Accountants earlier in 2017. The association represents 650,000 members and students in public and management accounting, advancing the reputation of CIMA students and members worldwide.