In 2023, there was a move towards increasing individual accountability at a global level. The implementation of the Individual Accountability Framework (IAF) and Senior Executive Accountability Regime (SEAR) imposes responsibilities on both companies and their senior staff to explicitly define areas of accountability and decision-making within their organisation. When SEAR is introduced, it requires companies to clearly outline key areas of responsibility and at senior level. This reform significantly alters the decision-making landscape within compliance, reshaping the roles of individuals within the organisation more profoundly than ever before.
Certain professional service firms have the capability to offer accountability experts from their global network to support your preparations for the IAF and SEAR. However, it is important to consider the reallocating the responsibilities within your organisation and/or hire those with the necessary skills to influence the decision-making process. Individuals may feel hesitant to leave their position due to these frameworks, so it is essential to conduct an honest assessment to determine whether they are in the right role and company based on their current skillset and capabilities within the SEAR regime.
Advice for clients
Regarding SEAR, some individuals might perceive the added responsibilities as excessive and may feel uneasy about getting involved due to the increased personal liability. They may leave before it gets to that stage, and we have seen candidates starting to discuss this. It is important to look at enhancing your fitness and probity and governance and oversight arrangements to be prepared for these new regimes. Individuals in these roles may question the added responsibilities and pressures, reconsidering their desired role within the organisation. It could be wise, should an individual change role to fit their skillset, that you consider an Interim position to complete the documentation and responsibilities related to these regulations. Engaging in candid and transparent conversations with your employees to comprehend their feelings regarding this new regime is essential.
It is sensible to consider any threats or weaknesses that could expose your organisation within the implementation of these accountability frameworks. This is a change that cannot be avoided, as it is not monetary issue but more of a stress issue. Speak with others regarding this and find out strategies to ensure effect regulatory compliance ahead of SEAR and IAF. Before entering the market, provide a clear, honest, and transparent depiction of what individuals are entering, ensuring the right resources within PCF roles, and ensuring alignment with prevailing market rates.
Advice for candidates
It should be considered to assess the company’s risk culture and maturity of framework, more so than salary because of this new regime. Become aware of the recommendations from The Central Bank and whether the company has the resources to meet them. If their compliance structure is stretched, it may be wise to reconsider the role or discuss the with the hiring team. It is important that a company conducts their regulations fairly and has a focus on governance, so read up about the company and its compliance structure. Otherwise, you may consider another role due to the potential overwhelming tasks and skill requirements to meet these changes.
For guidance on the talent market across risk and compliance and to discuss resource planning on a permanent or interim basis please contact Director & Co-Founder, Andrew Murphy, on +353858205640 or Andrew.murphy@coopman.ie
