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.
Every company relies on the cooperation and interaction with a large variety of different entities beyond its perimeters. In order to procure resources, this interaction needs to take into account many factors and when resources become scarce, visibility is essential.
The subject of water can be very emotive, because it is viewed as being finite and potentially scarce. Whenever we hear of drought conditions in the area, alarm bells start to ring. Conversely, electricity, another essential resource is not viewed in this light.
Consider all the water risks that the company faces. Drought is a significant threat, but flooding can also bring its own perils. Consider how regional events could affect how water is sourced from location to location. A comprehensive analysis of all the risks requires in-depth knowledge, on a regional, political and demographic basis.
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?
Water is an essential commodity from the lowliest individual to the most complicated corporation. As our climate is affected by global warming, availability of water is likely to change. Politicians could become galvanized and are likely to be more on the side of the individual than the corporation, when the chips are down. Be aware of potentially restrictive legislation, when any threat arises.
When assessing water risks, companies must also look at runoff and disposal issues. How is this potentially even more emotive issue likely to be handled? Environmental issues are to the forefront these days and any effect on the local ecology must be kept to a minimum.
There are so many potential setbacks, which could impact the water risk faced by a company. Challenges are likely to be raised and numerous “what if” scenarios should be explored, in order to justify a corporate position, when called.
Daniel Stouffer has a lot of information about water risks and how a visit to www.verisae.com will aid you.
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