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Therefore, Security Assurance should be a top priority – particularly when working on transformational projects. Security Assurance needs to be baked into requirements (or Epic), design, sprint (Agile) and change activities – where the changes in risk are assessed and mitigating controls applied.

Whether the project aims to move apps into the Cloud or deliver an essential upgrade to Cloud-based business systems, transformational projects warrant special consideration for maintaining confidentiality, integrity and availability.

There is potential for a breach any time information is stored or shared – and IT project documentation frequently includes intimate network and systems details, which present an attractive target for hackers. As projects develop, the attack surface also changes and controls often get relaxed; however, tight controls should be increased and maintained throughout the entire project cycle.

However, many companies are significantly underprepared in this area – leaving them unable to adequately safeguard their systems and data.

Plan of action

In order to properly arm themselves against attacks, it is vital that managers work together with information or cybersecurity specialists to understand the Information and cyber risks associated with any given project. Once these are understood, managers can begin to create an appropriate plan to mitigate risk factors and ensure the safety of confidential data.

Appropriate measures should then be taken to fortify systems against identified risks. Security can be an enabler of and contribute to the profitability of a project – whilst also helping to control costs and minimise any negative impacts that might deflect from the ultimate project goal, in some cases.

To ensure security is always a top priority, it needs to be integrated and maintained at every level of the project. This might involve anything from limiting data access to authorised individuals only, setting up two-step verification processes and encrypting files and communications to implementing appropriate security software solutions, offering training to team members and upgrading networks and systems regularly to ensure they are utilising the latest safety features.

We take a look at three steps managers can take to minimise risks when managing IT projects…

1. Controls and requirements

Before undertaking any transformational project, it is important to have clear controls in place. Most companies will already enforce certain requirements, but project managers should also consider whether any further, more specific safety measures are needed – for example, due to the nature of the data being shared or a client’s own security preferences.

Even the most robust defences can be taken down using stolen credentials, so adequate protection and measures to secure passwords are essential. For instance, team members should be required to update their passwords frequently and create strong passwords which make use of two-step verification. Controls regarding encryption and the sharing of information can also help reduce the risks of a breach and keep communications secure.

In order to control and automate the building, testing and deployment of applications, it may also be worth using a Continuous Integration or Continuous Deployment (CI/CD) pipeline to bridge the gap between development and operations teams – helping to enable fast product iterations, provide standardised feedback and remove manual errors. For example, online triage tool Asure automates the assurance process and provides project managers with a 360° view of security risks associated with change and transformation.

Security can be an enabler of and contribute to the profitability of a project – whilst also helping to control costs and minimise any negative impacts that might deflect from the ultimate project goal, in some cases.

2. Application security testing and code scanning

Advanced software plays a big part in maintaining security. Fortunately, we are now in a better position to evaluate and mitigate risk than ever before thanks to an increasing number of application security testing and code scanning tools on all systems software and infrastructure.

3. Championing security

No matter what type of project you’re working on, ensuring all team members are fully aligned and adequately trained is imperative; this is especially true when it comes to Security Assurance and managing risks. Through proper training, team members will be better equipped to identify risks and understand the measures needed to minimise them – allowing them to take responsibility for and champion security individually as well as collectively.

A crucial skill for any project manager is the ability to foresee risks. But they are not expected to be security experts. This is why it is worth seeking the help of a cybersecurity specialist to ensure project goals are met, whilst keeping systems and information secure. Security should also always be planned upfront, during the initial stages of a project, so as not to impact time and cost further down the line.

 

 Burning Tree is uncompromising when it comes to cybersecurity. Get in touch today to find out how the company can help you minimise risks through their advanced Consulting Services and Innovative Technology Solutions – so you can get on with managing all the other aspects of your project.

The comments from Zahid Aslam, Managing Director of Investment Banking at Dalma Capital Management Limited, come as the firm reports an almost one-third jump in enquiries regarding Sharia-compliant bond issuances from corporations outside of the GCC.

The news follows S&P Global Ratings predicting in January the global issuance of Sharia-compliant foreign and local currency bonds is expected to reach as much as US$115 billion (Dh422.1bn) this year.

“It is our experience that sukuk-based solutions are establishing themselves as an increasingly attractive alternative for the funding of infrastructure and development projects,” observes Mr. Aslam. “For example, we are currently working with clients on a variety of ‘off the beaten path’ projects, including a refinery initiative in the CIS region and a scheme to help develop eco-tourism and sustainable farming in several African nations. We are also seeing interest from Malaysia, Indonesia and Pakistan.”

He continues: “I would suggest that there are five main drivers for this significant upward trend for sukuk-issuance to continue this year and beyond.

“Firstly, lower oil prices – despite recent gains – have created a funding shortfall for many.

“Secondly, there is notable and mounting pressure on global liquidity.

“Thirdly, the US Federal Reserve’s ongoing plans to slowly raise interest rates, making borrowing more expensive.

“Fourthly, global regulation is enhancing and becoming more Islamic finance-friendly.

“Finally, general awareness outside the GCC of the uses and benefits are becoming ever-more understood and valued. Dalma Capital, being a licensed and regulated asset manager and investment boutique with a network of institutions and accredited partners, provides all the necessary solutions for sukuk issuers and investors.”

Zachary Cefaratti, CEO at Dalma Capital concluded: “There is growing evidence that potential borrowers who had never considered Islamic Finance are better understanding the clear benefits of such solutions.

“This is cemented by the fact that deals can be structured to be project based, not centred solely on the credit standing of the borrower. Numerous virtuous aspects of the nature of Sukuk will continue to bolster their prevalence in capital markets globally.”

(Source: Dalma Capital)

For almost three quarters (73%) of financials services leaders, customers are the main driving force behind their company’s digital transformation, however fear of failure is holding back the implementation of digital projects, with almost three quarters of financials services leaders put off by the costs of failed projects. This comes as no surprise, as seven-in-10 admit to cancelled projects in the last two years, according to Fujitsu’s Digital Transformation PACT Report.

“Financial services firms are under pressure from their customers to deliver greater speed, convenience and personalisation, as well as better customer services,” said Ian Bradbury, CTO Financial Services at Fujitsu UK & Ireland. “Digital transformation is certainly a key strategy in helping banks and insurers achieve this, however, despite the sector going from strength to strength, financial sector firms have undertaken unsuccessful projects and lost money. This has made them nervous about deploying new projects. But we feel that success can be born out of previous unsuccessful projects, as previous failures allow organisations to learn. In an ever-changing market, there is no such thing as permanent success. Organisations must continuously improve, learning from their mistakes along the way.”

Even though over four-in-five (87%) have a clearly defined digital strategy, almost three quarters (73%) admit that their digital transformation projects often aren’t linked to the overarching business strategy. But is this the sole reason UK financial services leaders can’t get to grips with their digital projects?

Realising a digital vision is not just about having the right technology. In order to successfully digitally transform, this research highlights four strategic elements businesses must focus on: People, Actions, Collaboration and Technology – the Digital PACT.

  1. People

While admitting to a problematic skills gap – especially as 80% believe the lack of skills within the business is the biggest hindrance to addressing cybersecurity – it is encouraging to see that over nine-in-10 believe they have a culture of innovation within their organisation. Despite this believe, 87% believe that fear of failure is a hindrance to digital transformation projects. There is therefore a long way to go for financial services companies to truly transform their culture to thrive on innovation. As UK financial services firms are taking measures to increase their access to digital skills and expertise (93%), four-in-five believe attracting ‘digitally native’ staff will be vital to their firms’ success in the next three years, as well as turning towards targeted recruitment (72%) and apprenticeships (50%) to support digital transformation.

  1. Actions

Although having the right processes, attitudes and behaviours within the organisation to ensure digital projects are successful are seen as the least important of the four key elements of digital transformation, 87% are taking specific measures to support collaboration on digital innovation and over two-in-five (43%) are creating networks for employees to share expertise across the business.

  1. Collaboration

Over a quarter (28%) of UK financial services leaders believe collaboration is an important element in realising the company’s digital strategy. While almost four-in-five (78%) turn to technology experts for co-creation, 67% go as far as seeking consultancy and training from start ups and organisations outside their industry.

  1. Technology

Many organisations are already leveraging new technology that will radically change the way they do business. A fifth of financial services leaders believe implementing technology will be the most important factor to realising their digital strategy, with cloud computing and big data and analytics playing a key role in helping drive the financial success of their organisations over the next 10 years.

Bradbury continues: “Historically, financial services firms have been cautious when it comes to innovation. They are working under strict regulations and the very nature of what they do, means that a radical digital transformation project could have a detrimental impact on people’s lives – for example, negatively impacting access to bank accounts or making insurance claims. But this shouldn’t hinder innovation across the sector. Quite the opposite – with the help of external expertise and willingness to implement digital transformation, we can be soon pleasantly surprised at a revamp of the industry. Change doesn’t always come naturally, but the financial sector understands what’s at stake, with 86% admitting that the ability to change will be crucial for the business’ survival in the next five years.”

(Source: Fujitsu)

From the pending implementation of VAT to the introduction of Inter-Governmental Agreements with foreign countries, below Finance Monthly hears about Kuwait’s most recent tax affairs through the lens of one the world’s largest professional services and accountancy firms, EY, and one of its top Partners and experts in Kuwait, Alok Chugh.

 

Despite previous plans, Kuwait’s parliament has recently announced that it will not implement VAT before 2021. What could this decision mean, both in the short and long term?

We are closely monitoring the progress in implementation of VAT and are in regular contact with all the key officials. Based on our discussions, we believe the VAT may be implemented sooner than 2021 (probably by January 2020).

While some businesses take a sigh of relief, this only seems to be short term, as once the other countries implement the VAT, the pressure on Kuwait will only increase.

 

What are the key challenges that could come with this decision?

Timing difference in implementation of VAT in Kuwait and in the neighbouring countries will have concerns by businesses involved in cross border transactions that may result in higher cash outflow. For Kuwaiti businesses, this is a blessing in disguise as this gives them additional time to prepare for VAT and also leverage from experiences of other countries.

 

What have been any other tax trends in Kuwait in the past six months?

Kuwait has signed the Inter-Governmental Agreements with the United States (US) for implementation of US FATCA. The financial institutions are required to do an annual FATCA reporting to the Ministry of Finance (MoF) and audit report prepared by a certified auditor is required to be submitted by the FIs on an annual basis.

In addition, Kuwait is a signatory to CRS Multilateral Competent Authority Agreement (MCAA). The MoF has recently issued additional guidelines for CRS, which among other things include appointment of an auditor for CRS reporting purposes (similar to the requirements for FATCA reporting).

Besides, from corporate tax point of view, there have been recent legal cases decided in the Kuwaiti courts, where the MoF has subjected the foreign principals and suppliers of products to tax in Kuwait, based on certain types of agency/distributorship agreements/arrangement. This effectively means a significant potential increase in the tax base. Kuwait is largely an importer of products and services wherein a number of foreign principals sell products and services through Kuwaiti agents.

 

Are there any concerns or future considerations regarding long term attractiveness for Kuwait as a place to do business? If so please elaborate.

Kuwait government is making efforts for: ease of doing business in Kuwait and has brought about legislative changes to attract foreign direct investments in Kuwait. Kuwait continues to spend on the mega projects in strategic Oil & Gas and Infrastructure projects. In addition, there are various other mega projects in pipeline, for which the tenders will be issued soon during the course of the year.

These projects definitely have promising business opportunities for local business as well as international companies wanting to participate in the Kuwait projects as subcontractors.

In addition, Kuwait has recently announced its Vision 2035, which will require significant investments in infrastructure, education, healthcare, over the course of 5-10 years.

 

Is there anything else you would like to add?

I take this opportunity to share our firm credentials. Our firm represents about 70% of the tax payers in the country and we are proud to serve almost all the major market players. We are a team of about 50 tax specialists, the largest tax team amongst the tax service providers, which includes team of experts in VAT, BEPS, Transfer Pricing, cross border tax advisory and tax compliance services.

 

Alok is a partner with EY’s Middle East practice and is based in Kuwait. He has lived and worked in Kuwait for over 25 years and has detailed knowledge of business and taxes in Kuwait. He has considerable experience in advising entry-level strategies for foreign multinationals wishing to do business in Kuwait.  Alok has been involved in a number of consulting assignments (including cross-border planning, application of double tax treaties and the efficient handling of tax and commercial affairs for project due diligence, business paper preparation or review, and structuring operational activities). Alok is a member of the Institute of the Chartered Accountants of India and is an active member and frequent lecturer at the American Business Council, French Business Council, British Business Forum and Canadian Business Council in Kuwait. He is also on the Board of the American Business Council in Kuwait. Alok has been consulted by various government organizations in Kuwait on the practical implementation of various regulations in Kuwait, including the Ministry of Finance. Alok also works closely with the Kuwait Direct Investment Promotion Authority (KDIPA) and a number of other government institutions.

 

Contact details

Alok Chugh

Partner - MENA Government and Public Sector Tax Leader

Mobile: +965-97223004 / +965-97882201

Phone: +965 22955104

alok.chugh@kw.ey.com

www.ey.com

Floor 18-21, Baitak Tower, P. O Box: 74, 13001 Safat, Kuwait

 As part of our Expert Insight feature, this month Finance Monthly looks at Construction in the UK, by speaking to Ciara Gormley, Partner at architectural practice PDP London.

What have been the trends in the construction sector in the UK in the past twelve months?

 The UK construction industry has certainly been on a bit of a roller coaster ride over the last 12 months. Unpredictability due to the cooling off of the prime residential market, because of political uncertainty, and an over-supply in some central London locations, has directed developers and funders to diversify their approach to gaining returns from property.

The UK’s controversial housing shortage at the other, more affordable, end of the market has therefore benefitted from a more focussed response, with developers shifting to seek long-term assets rather than an immediate capital return. The resultant financial constraints, reduced building programmes, the need for accuracy, speed and the requisite environmental standards have encouraged the development of innovation in off-site construction. Also there has been the emergence of the Private Rental (PRS) or ‘build to rent’ Sectors based on successful US models. This ‘build to rent’ sector is starting its own trend, looking like it is set to spiral, as the market seeks ways to maximise future returns and cater for the future of ‘generation rent’ as their requirements grow from that of graduates to family living – in itself redefining the meaning of ‘lifetime homes’.

 

What are some of the key issues that your clients face in relation to UK construction and real estate laws and regulations?

Political unpredictability is one thing, but the process of navigating the complex Planning systems and local government is still increasingly arduous. Legislation has not quite caught up with these emerging market trends with the level of detail required for planning applications growing and growing and developers having to negotiate heavily to achieve their long-term ideals.

The change of political emphasis, especially in central London has generated stricter obligations to supply ‘affordable’ housing in large developments with a starting gambit of 50% of the total numbers. This is generally on extremely expensive land which made the viability of development, especially at the prime level, very difficult.

Health and Safety awareness during the design and construction phases has vastly improved over the last two decades. Contractors and site personnel have benefitted from safer sites with improved working conditions which, apart from the dramatic decrease in site injuries, have aslo improved the finished product for the clients.

The increased client and designer responsibilities in this process have enabled us (And other architects) to provide an additional service to monitor and manage these processes through the design stages.

Recent incidents and tragedies have raised society's awareness of the contribution the built environment makes to our health, security and well-being. All stakeholders, whether they are legislators, developers, consultants, contractors, suppliers building users, have their part to play in the process to deliver the places in which we deserve and want to live, work and play.

What environmental regulations exist in the UK that construction companies and investors must be aware of prior to embarking on a project?

Although the Government appears to be moving to a lesser standard of zero carbon, especially where homes are concerned, larger developers are still extolling the benefits of developing buildings that are energy efficient, flexible and comfortable over the buildings life. In sectors where the market is flooded with new build product and developers and asset managers are holding onto their assets rather than selling, a good EPC and BREEAM rating on a commercial property for example, means better rental prospects on completion.

Schemes such as Considerate Contractors continue to encourage the contractor to actively plan their waste management into their working processes, this works well alongside assessment tools such as BREEAM and LEED.

The absorption of previously stand-alone energy saving initiatives into the building regulations, has increased standards globally, benefiting building design from a fabric and systems point of view.   PDP London has always taken an intuitive and passive design fabric-first, holistic approach to sustainable design (rather than the box ticking approach) which has proven to benefit both client and end user in the longer term. Large multinational institutions are still driving their own standard upwards, expecting commercial standards like ‘The Well Standard’ to sit alongside BREEAM and LEED as a minimum.

The London Plan pushes minimum space standards and amenity sizes in residential design which has had its impact on returns and affordability over a number of years. Whilst they have their benefit, especially in family housing, these are also currently being challenged. The new rental models create a paradigm shift in size of personal demise in lieu of more communal facilities.

 

In light of Brexit, what incentives are in place to encourage foreign participation in the construction sector in UK?

The UK Government seems to still have a lack of understanding of how to encourage inward investment in development, or at least it is slow to legislate for the market trends. There are very few incentives for inward investment into property, save the quality of product that is available in the UK and the quality of service from experienced construction professionals.

This is definitely a missed opportunity. Indeed, the exit from Europe will further exacerbate the labour shortage and many professionals and consultants will also suffer from the subsequent ‘brain drain’. We are hoping the government will embrace strategies and legislate to help counter the effects of this.  Innovation and flexibility seem to be the only answer in a fluctuating market and professional bodies are trying to find mechanisms to deal with this and hold onto years of experience.

 

What mechanisms do you use when identifying risks and opportunities in the early development process of projects?

 We find it is useful to set clear objectives and engage with the team from the inception of the project. Clear communication and building team trust is something we focus on from the outset. Including the client in these discussions to identify opportunities is vital and helps to forge a shared understanding whilst developing the brief in alignment with the client’s objectives.

We tend to run specific and focussed Risk Workshops at regular intervals. We use active documents as management tools and run a ’risks and opportunities register’ that is tracked throughout the project, ideally reviewed at each design team meeting. This allows each member of the team to feed their own risks per discipline into this process and share the understanding of mitigation strategies as they emerge.

 

How has technology changed the architecture sector in recent years?

 With the emergence of BIM as the mainstream tool for communicating drawn information, the way the industry produces and shares information has changed markedly. The detail, level of engagement and decision making that is required at early stages has impacted project planning tools and the level of expected detail, including the level of manpower at early stages in the design process.

As a practice, we have fully embraced the benefits of BIM, yet the long-term impact of this in the industry is unknown. Certainly, it is a positive advancement for the integration of the different disciplines and in the light of a burgeoning off-site construction market with the factory finish precision that it requires, it feeds well into such a process.

It terms of quality and uniqueness in the built environment it may not be just as practical or intuitive when working on existing buildings for example, as it relies on a lot of ’known’ information, before even getting to site. As we know, existing buildings are all about the ‘known unknowns’ and how we can use our skills to respond to this when we get to site. That said, the advancement in software to find solutions for problems such as thermal modelling has also increased the amount of ‘knowns’ about the fabric before stripping out!

The availability of 3d building scan surveys and point cloud surveys mean that photorealistic building information is available in the early days of the design process, driving the level of required accuracy far beyond that required at early stage design. In this instance having a balanced view as to the appropriate use of technology and its benefits for the client is of utmost importance.

 

Can you tell us about the current projects that PDP London is working on?

 We are best known for our multi award winning Duke of York’s Square, on the King’s road, home of the Saatchi gallery, which represents 10 years of our work. The master planning, detailed design and delivery of this new London square demonstrates our approach to the adaptive reuse of buildings in this underutilised, former military campus to create a mixed use, retail and residential Quarter within a historic setting.

We continue to develop our master planning and residential expertise applying well-honed high-end skills to other emerging areas of residential design such as PRS, Build to Rent and innovative residential housing models, which combine with the fundamentals of good place-making.

PDP London is currently working on proposals for the rebirth of the so-called “In and Out” Club, housed within a magnificent Grade I Listed Georgian building, 94 Piccadilly. Previously a residence for the aristocracy, a prime minister and a major London institution, the property has played a key role in London society over the last 150 years. The proposals combine the grandeur of a Georgian palace, with outstanding levels of service and luxurious design, and will offer a unique combination of style and facilities in the heart of central London.

We are also working on a luxury development on Dovehouse Street, located just off the famous King’s Road in Chelsea, to provide 55 high-quality extra-care units which cater for older residents, whilst also significantly improving the relationship with the local context, repairing the townscape and enhancing the public realm. The scheme comprises the demolition of all existing buildings at 2 Dovehouse Street and redevelopment of the site by reinstating the historical figure-ground.

PDP London has also recently completed the prestigious conversion of a Grade II Listed building, The Star and Garter, into 86 residential apartments. An important and prominent landmark, the building is located at the top of Richmond Hill in the Richmond Conservation Area and overlooks the Thames, with the only view in the UK protected by an Act of Parliament.

 

What have been some of PDP London’s major achievements in the past few years?

 

Any final thoughts?

Our people are our strength.

One of our strategies has always been to build roles around special people. When an individual has a particular passion, skill or knowledge base, it is crucial to help them to fulfil that passion and let them work to their strengths. We feel it is vital that everyone is afforded the space and support to express themselves, unlocking the best of their potential. It is this commitment to the development (both personal and professional) of the 120 people who work with us, and an appreciation of the uniquely varied skills that they bring to the mix, that makes PDP London a great practice and one that is able to consistently produce exceptional quality design.

Whether designing super-prime residential in exclusive central London locations, or student study rooms in refurbished Listed buildings, we endeavour to engage, support and re-energise the places and communities where we work, wherever they are, preserving and enhancing the best of the contextual heritage.

We continue to develop and foster our great team, working with the best people in their respective fields, to allow us to design, create and provide buildings, places and experiences that people enjoy.

 

ABOUT PDP London

PDP London’s portfolio is emblematic of outward facing, exciting, progressive and design-orientated architecture, which is firmly rooted in quality and excellence.

The practice was formed almost 25 years ago, by a small group wishing to push the boundaries and bring some fresh thinking to the approach of their clients – to encourage them to think of the process of place making rather than simply “building”.

The practice has grown to be 120-strong, and has built a reputation working on some of the most high profile properties at the most impeccable addresses in central London. PDP London has developed and honed their expertise in delivering both contemporary buildings and sensitive restorations of fine historic and vernacular buildings, in prestigious, unique and historic settings.

With a thoughtfulness and an inherent understanding of traditional values and architectural heritage alongside a desire to create world class architecture, PDP London has been pivotal in shaping the built landscape and public realm both in London and further afield. From designing exquisite hotels at Park Lane and Piccadilly to designing and shaping a new, sustainable community in Belfast, our emphasis is on designing great places to live, work and play – making a real and sustained contribution to the future of our built heritage.

Continuing our success in the prime residential market, PDP London has evolved to export this brand of architecture internationally. Starting by working with Grosvenor to re-envision the ethos and quality of the London residential brand in Hong Kong, Mainland China and Japan, this has grown to a 25 strong Hong Kong base working as far afield as Canada.

 

ABOUT Ciara Gormley

Partner

BA (Hons) Dip Arch RIBA ARB

Ciara has spent the last 2 years leading a large team on the Chelsea masterplan development, a mixed-use masterplan enabling development that is to release value on six sites in the ownership of the Royal Brompton and Harefield Hospital Trust. This is to deliver a new state of the art heart and lung hospital, just consented. This varied site includes mixed use, public realm, retail and high end residential as well as the hospital buildings.

Ciara is the partner instrumental in designing and delivering a scheme for 70 zero-carbon homes and a new sustainable community at Killynure Green, Carryduff, N. Ireland. The scheme was the result of an anonymous international competition and phase one recently completed creates 39 new homes for social use arranged around a series of vibrant landscaped spaces.

Ciara joined the practice to lead the residential component of Duke of York Square masterplan development completed in 2008 and has since concentrated her interests on the integration of the low and zero carbon brief into prime residential developments, and in this capacity she has been key to ensuring sustainability is integral in all PDP London’s design work, culminating in PDP being awarded AJ’s Sustainable Practice of the Year in 2012.

Since 2009 Ciara has led the PDP London Dolphin Square portfolio, delivering their aspiration to provide significant places for Londoners and specifically key workers to live. The launch of their ‘Dolphin Living’ brand and the completion of their first new build rental development at One Church Square was the culmination of 3 years of this work.

Before joining PDP London in 2005 Ciara gained experience in both large and small housing schemes from problematic estates to private one off dwellings and hotels in both the UK and Ireland.

Ciara studied Architecture in Liverpool and Edinburgh, and qualified as an Architect in 1998. Ciara has also been an external examiner at Westminster and Brighton Universities’ RIBA Part III courses and is actively involved in promoting the practice’s sustainable portfolio lecturing in the UK and abroad.

 

 

 

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