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Assessing a Company’s Water Risks

Water is one of the most essential resources that is neglected by most organizations, which all rely heavily on it but fail to assess water risks. Op zoek naar nieuwe kandidaat Most of these risks can be relatively similar for most industries but could vary from one company to another, and can be complex and relevant to different scenarios. In other words, this is not a simple question on the availability of water as a Resource, as there can be many complex political and socioeconomic issues that could be an additional factor to the equation.

It is important to realize that no organization exists in a vacuum. As the company relies on the procurement of resources from outside its boundaries, so it cannot assume that these resources will be available based on purely economic factors alone.

As many organizations rely implicitly on the use of water, risks associated with its use should be comprehensively assessed in order to assure sustainability. These risks can change from one particular industry to another and from one company to another, but they are invariably complex and tied to numerous different scenarios. In short, it’s not simply enough to question whether water will be available, as complex socioeconomic and political issues factor into the equation.

Water can be a very emotive subject, as it is regularly viewed as a finite resource, especially in arid months when we hear about the arrival of drought conditions. Electricity, one of the most essential resources for a company, would so often appear to be available, if at all.

Companies must consider all the water risks: what should happen in the event of drought, or conversely what should happen if significant flooding events occur? Wherever water is sourced, how could regional events or other developments affect its availability? These questions would need a deeper knowledge of the area, a feel of the political climate and a good demographic knowledge.

How effective is the regional government team in each area where your organization has a presence? In a distributed setup, this will require knowledge of the inner workings of several different government teams. Historically, how do they treat water risks and related issues? How are they likely to react to certain scenarios?

As everybody is confronted with major issues related to water risks, corporations of individual consumer alike, climate issues may affect the availability of water for the consumption of organizations. As the subject is so emotive, politicians are likely to come down in favor of the individual consumer and could well react with a potentially unfair raft of legislation, should the threat of drought or shortage arrive.

Whenever a company assesses its water risk, it should also address its disposal or runoff risks. Consuming the water is one thing, but if an industrial process results in runoff, how is this being handled? Issues related to the environment are getting more substantial attention and any organization needs to manage its ecological impacts to keep it to at minimum as possible.

A comprehensive water risk assessment will reveal all potential setbacks and develop numerous “what if” scenarios. Every company must be prepared for a challenge to its water use and be able to justify its position accordingly.



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Assessing a Company’s Water Risks

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