DNB strengthens resilience to geopolitical risks

De Nederlandsche Bank (DNB) meticulously studied various geopolitical scenarios to assess their potential impact on the economy, financial institutions, and its own operational continuity.

These scenarios ranged from hybrid threats, such as sophisticated cyber attacks and disruptions to critical logistics chains, to severe operational challenges like prolonged 72-hour power outages and the broader implications of economic and physical warfare.

The analysis revealed significant vulnerabilities within the financial sector, particularly its pronounced digital reliance on non-European IT providers, a concern DNB has consistently highlighted.

Furthermore, the sector faces escalating operational and financial risks, which could lead to widespread service disruptions and a rise in credit defaults.

The central bank also identified increasing strain on international consultation structures, potentially leading to regulatory fragmentation and diminished global supervisory effectiveness.

In response, DNB is implementing additional supervisory measures in collaboration with other European authorities to mitigate these identified risks.

In response to the current geopolitical environment, DNB launched its DNB2030 change programme to enhance organisational agility and efficiency.

The programme also targets a structural budget reduction of 10 percent.

For its supervisory function, DNB is prioritising a more results-oriented approach, fostering a secure and innovative financial sector, and improving the effectiveness of its interactions with the sector.

This internal transformation aims to ensure the central bank can maintain its flexibility and core operations amidst unforeseen escalations.