Building a more resilient business environment

Denmark has once again been named the world’s most resilient business environment in the FM Global Resilience Index. Australia is 13th and New Zealand is 20th – so what are our weaknesses?

Both Australia and New Zealand have greater climate risk and climate change exposures, with New Zealand also at much higher risk of seismic activity. New Zealand also scores worse in cybersecurity and productivity. Meanwhile, Australia has a more concerning inflation score (coming in at 64th, compared with 50th for New Zealand and 40th for Denmark).

Interestingly, Australia is the top scorer for education and New Zealand has risen two spots to place at second in the education measure in the index.

_{Source: FM Global Resilience Index}

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IASB guidance on climate reporting requirements

By the end of July 2024, the International Accounting Standards Board (IASB) is aiming to provide eight draft examples of the relevant climate information businesses should be including in their company accounts.

While the board hasn’t released details of the examples yet, they are intended to help auditors and report preparers decide what is material enough to include in financial statements, how climaterelated assumptions impact the valuation of assets and liabilities, and whether a business should provide additional details based on its exposure to climate risk.

Once the IASB’s examples are released, there will be a 120-day consultation period.

Search the IASB website ifrs.org for ‘ap14c development of examples’ for more information.

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Are you suffering from change fatigue?

When employees have a sense of apathy or resignation in the face of workplace changes, they are said to be experiencing change fatigue. Research from Gartner has pointed to change fatigue among team members in the finance function as a source of significant risk for businesses.

“Change-fatigued employees exhibit much lower intent to stay, responsiveness and discretionary effort, among other negative outcomes,” says Hilary Richards, vice president analyst in the Gartner Finance practice. “When considering change fatigue in their functions, finance leaders tend to fixate on the number of changes an employee is experiencing, which is only part of the story.”

Change fatigue can be caused by:

1. Changes in team composition

2. Changes in leadership or reporting lines

3. Longer or disrupted working hours

4. Implementing new technology

5. Implementing new systems and processes.

The degree of change fatigue can also be impacted by how many changes are underway at the same time, as well as the extent of the changes.

Managers can help team members avoid change fatigue by clearly communicating what the purpose of the change is and what it will achieve for the team and for the business. Then, staff need regular progress updates, as well as ways to share their concerns and provide feedback.

A psychologically safe workplace and activities that help build team cohesion and morale can also help everyone cope better with disruption.

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Use your CPD to learn more about data and AI

Why not use some of your CPD hours to improve your knowledge of data analytics and AI? CA ANZ offers a range of short courses, some of which are on special in the EOFY sale, from 7 May to 1 July 2024. Head to the CA Store for more information: store.charteredaccountantsanz.com

• Micro course

Introduction to data analytics (four hours of digital self-paced learning, and two-hour live practical application workshop)

This micro course will help you follow the process, see how you might apply data analysis to your own business challenges, and understand the ethical considerations when analysing data.

• Digital on demand

ChatGPT and large language models: the future of accountancy and business (one-hour recorded webinar)

Presenter Nick Beaugeard takes you through ChatGPT’s features, guides you through demonstrations to build your confidence using the software and helps you develop more effective prompts to get better results from AI.

The impact of generative AI(one-hour recorded webinar)

How will AI transform the financial services industry? Dr Michael Kollo shares practical examples of the application of AI in finance, as well as the ethical considerations and risks.

Improve productivity with ChatGPT (one-hour recorded webinar)

Productivity expert Donna McGeorge shows how to use it as your virtual assistant. In this hands-on session, learn how to integrate AI into daily task management, using ChatGPT for data analysis, client interactions and more.

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Best places to work remotely

Global HR platform, Remote, recently released its 2024 list of the best cities to live in, if you work remotely. Researchers used measures of openness, internet access, safety, quality of life, cost of living, incentives, inflation and attractiveness to compare places across the globe.

While Auckland made fourth place in this year’s list, Sydney fell out of the top 10, coming in at 17th this year – largely owing to the increase in cost of living.

1. Madrid, Spain

2. Madeira, Portugal

3. Toronto, Canada

4. Auckland, New Zealand

5. Tokyo, Japan

6. Paris, France

7. Portland (Maine), USA

8. Taipei, Taiwan

9. Stockholm, Sweden

10. Reykjavík, Iceland