The Dutch Central Bank (DNB) issued a warning about increasing 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 changes pose to banks, insurers and pension funds.

“For several years now, the Netherlands and Europe have failed to develop favorable international relations,” said DNB Executive Board member Steven Maijoor, urging institutions to address potential vulnerabilities and strengthen buffers against these risks in growth.

DNB points out that geopolitical disruptions increasingly threaten financial stability, which could lead to credit losses, stock market shocks and significant non-financial challenges, especially in the area of ​​cyber security. “It is critical that institutions prepare and develop cyber resilience,” Maijoor said, stressing 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 also points out that Europe’s pivot from free trade to protectionism and the formation of economic blocs has accentuated these threats. This shift has led to trade barriers and disrupted global supply chains, increasing the chance of economic shocks.

To mitigate these risks, DNB advises financial entities to use stress tests and scenario analyzes to assess vulnerabilities. Maijoor added that “European cooperation is crucial”, stressing the role of joint efforts in cyber security and financial supervision to effectively tackle this cross-border problem.