Fresh ash from Iceland's Eyjafjallajokull volcano, coupled with a change in wind direction, resulted in several hours of airport closures in the United Kingdom and Northern Ireland earlier today.

While flights resumed later in the day, the ash could remain over northern Britain for the next several days, potentially causing more disruptions during the week and over the next several months.

Although the majority of businesses outside of Iceland have not suffered direct physical damage from the volcano, some have incurred considerable uninsured business interruption losses due to disruptions in their supply chains.

Gary Lynch, global head of Marsh's Supply Chain Risk Management practice, noted, "Unforeseen local natural catastrophes can have a broad global impact due to the nature of globalized externally interdependent supply chains."

Risks in the supply chain are often managed through various techniques, including legal contracts, insurance, duplicate sources of supply, and more.

Yet, significant unmitigated risks that can impact the reliability of supplies/suppliers and affect businesses remain.  Examples include regulatory action, niche or sole source suppliers, delays due to strike or political events, or disruptions caused by natural catastrophes like a volcano's eruption.

"Economic conditions that motivated procurement managers to rely on lower air freight costs may have inadvertently increased the level of risk in the supply chains," added Lynch. "The majority of those who receive goods through global supply chains do not have adequate financial protection in the form of insurance against the possible negative impact of a major supply chain disruption."

The initial Eyjafjallajokull eruption on April 14 caused unprecedented disruptions, from air travel to delays in global trade. The automotive, technology, and perishable goods sectors experienced supply chain disruptions that caused production delays worldwide.