Based on the identified areas of water use
and impact, Module 2 helps tool users identify, characterize,
and prioritize potential corresponding business risks. Business
risk often comes in the form of potential constraints on economic
activity. These may result from cost increases, process and
production delays, limits on capacity expansion, decline in
demand for products and services, and changing customer preferences
and expectations. Module 2 helps organizations answer the
- What are the business risks linked to
the organizations water uses and impacts, taking into
account the vulnerability of key water sources affected
by these uses and impacts?
- Which risks are most significant?
Prioritized risks from Module 2 highlight the focus areas
for consideration in Module 3. Module
3 helps tool users to identify creative options to reduce
risk, create business value, and contribute to water sustainability.
Understanding the business sensitivity to
water-related changes, as well as the relative likelihood
of these changes occurring (which is often linked to the vulnerability
of the affected water sources), provides important information
regarding potential business risks. Such information enables
business managers to assess and articulate the business case
for developing a strategy to mitigate potential water-related
constraints to business activity.
Most businesses employ well-established procedures for identifying
and evaluating potential business risks. Tool users are encouraged
to seek opportunities for incorporating the risk information
and evaluation criteria into such core business risk evaluation
processes, including due diligence assessments for site acquisition,
issue identification systems, environmental management system
risk assessment processes, and other risk assessment activities.
Such processes help ensure that water-related risks are routinely
considered as changes in business operations and water trends