EC report on crisis preparedness in the EU financial sector

The European Commission (EC) has published a report issued to the Council of the EU and the European Parliament, assessing the level of crisis preparedness of the EU financial sector in light of increasing geopolitical, cyber, climate and operational risks. The report states that the sector benefits from a robust, multi layered preparedness framework underpinned by sector specific legislation (including CRR/CRD, Solvency II, MiFID II, EMIR and CSDR), with particular emphasis on the Digital Operational Resilience Act alongside strong supervisory and crisis management arrangements at EU and national level.

It highlights the role of operational resilience, ICT and cyber risk management, business continuity planning, stress testing and supervisory coordination in ensuring the continuity of critical financial services, including payments and market infrastructure, during periods of crises. While noting the sector's resilience during recent shocks, the EC emphasises that preparedness must be subject to ongoing assessment. Further resilience is expected to be supported by initiatives such as the Savings and Investments Union and the proposed digital euro. In general, the EC notes that preparedness is not static; it is a dynamic, forward-looking state requiring a continuous cycle of planning, training, equipping, testing, evaluating and improving. It involves anticipating risks, building capabilities, coordinating across sectors and learning from past events to strengthen resilience, all of which the EC states apply equally to the financial sector.

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