Why banks must prepare for a ‘black ash’ event

LONDON – Financial institutions rarely run scenarios for events such as a volcanic ash cloud closing the European airspace for almost a week, but when the unthinkable happens it brings home the importance of having business continuity plans in place.

“The volcanic ash cloud and the effect across Europe is truly unique, and an outlier scenario. This resembles a black swan event that we can call a ‘black ash’ event,” says Panagiotis Tsaoussis, senior vice-president in operational risk at ING