In their spring 2026 risk update, the Joint Committee of the European Supervisory Authorities (EBA, ESMA, and EIOPA) drew a line between two forces shaping the current environment—geopolitical tensions that refuse to ease, and a private finance market that has grown faster than the visibility around it.
A surge in energy prices tied to the war in the Middle East is beginning to filter into the Dutch economy, raising inflation and complicating the outlook for growth at a moment when the margin for error is already thin.
Risk hasn’t just increased, it’s become more connected, more dynamic, and harder to contain within traditional GRC models. This report, developed with Harvard Business Review Analytic Services, explores how organizations are responding by rethinking GRC through AI. Not as a layer of automation on top of existing processes, but as a way to fundamentally change how risk is understood and managed.
In recent years, we’ve seen multiple cases when governance gaps that were created during digital transformation resulted in regulatory enforcement. In 2020, the U.S. Office of the Comptroller of the Currency fined Capital One $80 million for failures to establish effective risk assessment before migrating significant IT operations to the cloud and to remediate quickly afterward. In 2022, U.K. regulators fined TSB Bank £48.65 million after a disruption caused by company’s core-platform migration that exposed weaknesses in risk management and governance.
Europe’s banking sector is stepping into a more volatile geopolitical landscape with a steady footing, according to new data released Monday by the European Banking Authority.
There’s a quiet but unmistakable shift happening in how regulators are looking at pension funds. Not just what they invest in, but how they govern those decisions, how they manage risk, and ultimately whether those choices stand up to the simple question every pension saver would ask. Was this really in my best interest? Sweden’s financial watchdog has now put that question directly to Alecta.
At its latest board meeting, the Central Bank of the UAE struck a tone that was less about reacting to crisis and more about reinforcing confidence. Officials said the country’s financial system has weathered current global and regional pressures without any material impact on the health of banks or the functioning of payment systems.