The Dutch Central Bank (DNB) has issued a warning about rising cyber risks due to escalating geopolitical tensions. The announcement, part of DNB’s new supervisory strategy, highlights the risks that cyber threats, economic sanctions, and global trade shifts pose to banks, insurers, and pension funds.
“For some years now, the Netherlands and Europe have not been able to take favorable international relations for granted,” said DNB Executive Board Member Steven Maijoor, urging institutions to address potential vulnerabilities and strengthen buffers against these growing risks.
DNB emphasizes that geopolitical disruptions increasingly threaten financial stability, which could lead to credit losses, stock market shocks, and significant non-financial challenges, particularly in cybersecurity. “It is essential for institutions to prepare and build cyber resilience,” Maijoor said, noting the importance of the European Digital Operational Resilience Act (DORA), which imposes stricter risk management guidelines, especially for third-party ICT providers.
The DNB report additionally points out that Europe’s pivot from free trade toward protectionism and the formation of economic blocs has heightened these threats. This shift has resulted in trade barriers and disrupted global supply chains, increasing the chance of economic shocks.
To mitigate these risks, DNB advises financial entities to use stress testing and scenario analyses to assess vulnerabilities. Maijoor added that “European cooperation is crucial,” stressing the role of joint efforts in cybersecurity and financial oversight to address this cross-border issue effectively.