A Need for Global Collaboration for Water Risk Mitigation and Crisis Management
Water risk mitigation and crisis management has become high-profile issues for the private and public sector. Topical problems include pollution, scarcity, natural and intentional contamination, floods and droughts, and global warming. These problems affect companies and communities directly or through their clients, suppliers, or others with a water footprint along the supply chain.
Declining water quality and increasing concern for drinking water safety and security create serious risks to communities and businesses around the world. Companies are facing new challenges and are exposed to potentially serious economic and political risks caused by declining water quality. The threat of contamination, poor and constantly changing ground and surface water quality, and rising water-related costs can lead to supply-chain disruptions, plant closures, and public opposition to local business activities.
Water users need to detect, identify, and mitigate water risks and seek solutions to eliminate, respond and manage a potential crisis. Better management is emerging which can be grouped into the following categories:
- Commercial
- Political
- Legal regulatory and contractual
- Resource
- Reputation
The business categories include:
- Water infrastructure and services
- Suppliers
- Firms
- Financial institutions
In addition, businesses are finding a growing obligation to disclose and justify their water use and impact at all stages of production, consumption, and disposal. Some of the key factors are growing public environmental awareness and a greater understanding of the critical role of water in different economic and commercial facets of life.
These obligations and factors have translated into real business tangibles including the following:
- Concerns about potential water shortages;
- Natural or intentional contamination of potable water and ground and surface water sources;
- Growth of shareholder activism leading to greater corporate disclosure and transparency around new material risk issues;
- Growing public pressure on firms to embed Corporate Social Responsibility disciplines in their core business lines;
- Public policy issues such as influential agencies of codes of good practice and guidelines.
There are a number of possible approaches for water users to mitigate their exposure to water risks through technology and influencing behavior in their operations and supply chains.
Key opportunities for mitigating water risks include:
- Water users seek relevant advice and expertise on technical matters;
- Exchange of information with other water users and peers to engage in the ongoing detection, monitoring, measuring and analysis of water risks;
- Adhering to guidelines which offer concrete areas of action where water users can influence the adoption of environmental, social and corporate governance issues;
- Develop and share new approaches to recognize, adapt and mitigate risks and managing crisis;
- Execute a systematic assessment of the water footprints, and water quality, water-efficiency, and sustainability indicators and diagnostic tools for internal use;
- Rate exposure and management of risks;
- Create risk assessment and testing models; integrating water sustainability into all aspects of operations, and creating incentives for staff to apply these criteria;
- Increase stakeholder engagement is critical for improved understanding and identification of potential risks.
A successful risk mitigation and crisis management strategy will integrate all of the above into a process driven solution which combines effective detection, response, communication, planning and better understanding of the risks. This solution drives the need for critical components which include the availability of qualified-real-time-accurate data, decision making algorithms and a targeted effective collaboration system.
Simply put, early detection, effective communication, global collaboration, documentation of success and project management forms the basis for developing any water risk or crisis management plan or policy.
Recognizing this, H2oAlliance has developed an independent platform which integrates identification, response, communication and collaboration to help companies and organizations and policy makers to mitigate water risks and respond to crisis situations more effectively through technology.The platform can be customized to companies and organizations within 60 to 90 days.
Integrated Water Risk and Crisis Management Platform
Water Risk Mitigation and Crisis Management Experience and Expertise
Advanced Technology Center (ATC) for Water
Contact WRCM working group
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