Publication / 21 Mar 2017

Smart Water Management for Business Growth: Integrating Water Risk into Business Decision Making

This paper describes the framework behind the Water Risk Monetizer tool and how to use its outputs to address business-critical water risks.

Water is essential to the production and delivery of nearly all goods and services. Many businesses are reliant on a sufficient flow of clean water to operate and realize their growth ambitions. Over-consumption of water, water pollution, environmental degradation and changing climatic conditions are making clean water an increasingly scarce resource.

To enable continuity and growth, businesses need better information to quantify water-related business value at risk in ways that can be incorporated into existing decision-making frameworks and factored alongside operational costs and revenue forecasts. However, without monetizing these water risks, it is often difficult for businesses to plan which mitigation projects are most valuable for growth.

The Water Risk Monetizer is a publicly available global water risk assessment tool that uses best-in-class local water basin datasets and scientific methodologies to monetize water-specific business risks. It provides a comprehensive series of metrics to help businesses understand water-related risks by using economic techniques to quantify the risks in financial terms. The Water Risk Monetizer is globally relevant, simple to use and applicable across a wide range of businesses and industries. The output of the tool is credible, actionable information that can be used to help businesses make more informed decisions to protect against water quantity and water quality constraints to growth.

 

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