De Nederlandsche Bank published a speech by Steven Maijoor to the International Federation of Accountants’ Chief Executives Forum in Amsterdam, linking geopolitical fragmentation and accelerating digitalisation to heightened prudential and audit risks. He identified cyber resilience as a key focus area for supervision in the coming years for both De Nederlandsche Bank and the European Central Bank, and argued that auditors should treat operational disruption and cyber threats as relevant to going concern assessments and communicate promptly with supervisors when concerns arise. The speech highlighted channels through which geopolitics can affect financial institutions, including weaker growth and higher inflation, constraints on portfolio diversification from restrictions on capital flows, and operational vulnerabilities arising from reliance on third-party technology providers. Maijoor pointed to Amsterdam Trade Bank’s 2022 bankruptcy following sanctions-related withdrawal of software support for payment systems as an example of a going concern failure driven by operational rather than solvency or liquidity stress, and referenced the 2023 cyberattack on Ukraine’s Kyivstar as an illustration of how telecom disruption can cascade into banking and payment services. He also warned that geopolitical pressures could undermine international standard setting, welcomed ongoing work by the International Audit and Assurance Standards Board on a revised going concern standard, cited Dutch mandatory guidance requiring proactive auditor-supervisor communication on going concern issues, and called for full and timely implementation of Basel III.
De Nederlandsche Bank 2025-04-04
De Nederlandsche Bank flags cyber resilience as a key supervisory priority and urges full Basel III implementation amid geopolitical risk
Steven Maijoor of De Nederlandsche Bank spoke at the International Federation of Accountants’ Chief Executives Forum about geopolitical fragmentation and digitalization affecting prudential and audit risks. He emphasized cyber resilience as a focus for De Nederlandsche Bank and the European Central Bank, urging auditors to consider operational disruptions and cyber threats in going concern assessments. Maijoor also addressed geopolitical pressures on financial institutions and international standard setting, advocating for proactive auditor-supervisor communication and full Basel III implementation.