Accountants have been told to take the lead in assisting regional governments in turning risks into opportunities.
This suggestion came from Warren Allen, president of the International Federation of Accountants (IFAC), during a presentation at the 31st annual Institute of Chartered Accountants of the Caribbean at Hilton Barbados last Friday.
Speaking on the topic Sustainable Organizational Success, Allen said it was not a matter of incremental change that was needed but “a radical transformation in the way we think and the way we run our organizations”.
He said: “It is us professional accountants who are ideally placed to lead the way in this regard. There are three pillars of sustainable development – economic, social and environmental sustainability. Here in the Caribbean all three pillars of sustainable development are highly relevant and all must be combined to create win-win scenarios for sustainable economies.”
The former Ernst & Young partner in New Zealand acknowledged that turning risks into opportunities would not be easy, but said it should begin with “a stakeholder engagement process”.
“We, the accounting professionals, regardless of where we are employed, are being called upon to meet the growing demand for services related to sustainability including advice, accounting, reporting and also assurance.
“We have a key role to play here in responding to this market-driven demand. And it is interesting to note that this is different from many of the demands that we face which could be described as regulatory-driven demand. Today sustainability issues and financial performance have become intertwined,” added Allen.
He said that in addressing and improving sustainability performance it was critical to have measuring systems in place as well as regular reporting.
“Management action requires quality information. Accountants are ideally placed to assist with data identification, discipline, evidences, controls and monitoring in those financial areas, as well as analysis of what it all mean, and we do all of this within a strong ethical framework,” he said.
“IFAC will continue to speak out on behalf of the global profession while developing it to serve the public interest on issues such as sustainability.” (MM)
