Extreme-event risk management: a review of “Lee, B., Preston, F. 2012. Preparing for High-impact, Low-probability Events: Lessons from Eyjafjallajőkull. London: Chatham House.”

This paper provides a short communication based on a Review of “Bernice Lee and Felix Preston with Gemma Green, 2012”. This white paper received 36 survey responses from businesses related to the impact of the Eyjafjallajőkull volcano. Most reported negative profit impacts, although 47% reported that it took less than a week to return to normal operations. This volcanic incident represents events that have significant impact on supply chains that have low enough rates of occurrence that they cannot be expected to be forecast. Therefore there is a great deal of value to put the organization in a position to adapt to whatever might occur, and to have contingency plans in effect.