Acts of God Risk

In the aftermath of Superstorm Sandy in 2012, various articles pointed out the gap between the size of the storm's surge and the magnitude of such an outlying event planned for by New York City and coastal New Jersey. What was expected was much smaller than what was delivered by nature. For business continuity plans and overall infrastructure, the storm aftermath led to the question of whether plans were effective, given existing storm data and forecasted trends for potential future storms. How do we plan more effectively for such events in the future? Scenario analysis offers one useful approach.