Risk & Resilience

As 2025 looms on the horizon, the regulatory landscape is bracing for seismic changes. Dubbed the "Year of Regulatory Shift," the upcoming year is expected to reshape the rules governing technology, data risks, consumer protections, and corporate governance. This prediction, highlighted in KPMG US's latest Ten Key Regulatory Challenges of 2025 report, signals a turning point for organizations aiming to navigate a web of emerging risks.

In the high-stakes world of energy, a cyberattack isn’t just a technical failure—it’s a business disruption. And for Halliburton, one of the largest oilfield services companies globally, that disruption came at a hefty price. In August 2024, the company was hit by a ransomware attack linked to the notorious RansomHub group, leading to a significant financial loss that’s being felt in both immediate and long-term ways.

In the wake of persistent market uncertainties and last year’s banking sector turmoil, the Basel Committee on Banking Supervision has once again taken a firm stance on global banking resilience. Meeting in Basel on November 19–20, 2024, the committee zeroed in on advancing regulatory consistency, improving risk management practices, and equipping supervisors with sharper tools for navigating the complexities of today’s financial ecosystem.

Between May and October 2024, the Federal Reserve has been busy shaping the regulatory landscape for U.S. financial institutions, reinforcing its commitment to ensuring the safety, stability, and soundness of the banking system while protecting consumers in a rapidly changing environment. In its latest Supervision and Regulation Report, the Fed highlights several initiatives that reflect its ongoing efforts to keep pace with emerging risks and challenges in the financial sector.

The Australian Prudential Regulation Authority (APRA) has released findings from its second climate risk self-assessment survey, offering insights into how financial institutions are addressing climate-related risks. The survey, aimed at all APRA-regulated banks, insurers, and superannuation trustees, drew responses from over half of the invited entities. It builds upon a smaller 2022 assessment that initially focused on large entities, marking a broadening effort to gauge sector-wide climate resilience.

As international tensions escalate, the financial sector in the Netherlands faces mounting risks that demand a swift, strategic response. In its supervisory strategy for 2025-2028, De Nederlandsche Bank (DNB) warns that Dutch financial institutions—banks, insurers, and pension funds—must bolster their resilience against an increasingly unpredictable global landscape.

Acting Comptroller of the Currency Michael J. Hsu warned financial institutions against falling into compliance tunnel vision, citing historical examples where regulatory focus on specific risks inadvertently created new vulnerabilities in the financial system.