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Water Vulnerability Risk Assessment

A water vulnerability risk assessment evaluates a water system's susceptibility to hazards like pollution, shortages, or natural disasters and the likelihood of negative consequences. The process involves identifying potential threats, assessing their likelihood and impact, and using the results to develop a plan for risk reduction, often by focusing on the most significant risks first. This can include evaluating physical risks, water quality, quantity, and threats to the system's integrity. 


Background :


•Water is a critical input for most industrial operations—used in processes, utilities, cooling, and sanitation. With growing stress on freshwater resources due to over-extraction, pollution, and climate variability, industries face increasing exposure to water-related risks.


Water Risk Assessment is therefore a systematic evaluation of both basin-level and operational-level risks to identify potential vulnerabilities, quantify their business impact, and develop strategies for resilience and sustainability.


This assessment considers three scenario frameworks:


Optimistic Scenario: Stable water availability and effective management.

Business-as-Usual Scenario: Moderate risks with limited mitigation measures.

Pessimistic Scenario: Severe scarcity or regulation resulting in disruption to operations.


Water Risk Assessment


1.Physical Risks <==> Water Source Risks

2.Regulatory Risks <==> Water Rights & Regulations

3.Reputational Risks <==> Local Dynamics

4.Infrastructure Risks <==> Utility Reliability & Resiliency

5.Business Risks <==> Business Continuity Plan


Physical Risks

These are direct risks related to availability, quantity, and quality of water sources used by the plant.


Key aspects:

Source Dependence: Groundwater, surface water, municipal supply, or shared industrial pipeline.

Availability Trend: Seasonal fluctuations, declining groundwater table, competing users.

Quality Deterioration: Contamination, salinity, or industrial pollution affecting process suitability.

Climate Variability: Droughts, floods, or changing rainfall patterns impacting recharge or inflow.

Assessment Tools: Aqueduct Water Risk Atlas, Catchment vulnerability mapping, and trend analysis.

Impact: Reduced water intake, higher treatment costs, operational curtailment during scarcity periods.


These represent availability, quantity, and quality risks linked to natural sources and hydrological conditions.

Basin-Level Risks:

Declining groundwater table due to over-extraction in the basin or competition from agriculture and domestic users.

Reduced surface water availability from rivers, reservoirs, or canals due to erratic monsoon and climate variability.

Flood and drought cycles impacting the reliability of water sources.

Catchment degradation and poor watershed management leading to siltation and lower recharge.


Operational-Level Risks:


Dependence on single water source (e.g., borewell or municipal line) with limited redundancy.

Water quality deterioration (e.g., high TDS, hardness, contaminants affecting process water).

Seasonal variations in availability and pressure affecting operations.

Inadequate onsite storage or treatment limiting flexibility during supply interruptions.

Assessment Methods:


Hydro-geological data review, water balance mapping, trend analysis of source yield, and quality monitoring.


Regulatory Risks :


Regulatory risks emerge from evolving water governance frameworks, legal restrictions, and permit requirements.

Key Risk Areas:

Withdrawal restrictions imposed by groundwater authorities (e.g., CGWA or State WRD).

New water pricing policies or volumetric tariffs by industrial development boards or local authorities.

Non-compliance with CCA (GPCB) water consumption limits or effluent discharge standards.

Water reuse/recycling obligations under sustainability or ESG directives.

Disruption risk due to non-renewal of water abstraction licenses or NOC withdrawal.


Assessment Methods:

Gap analysis against national and state-level water regulations, compliance checklists, and stakeholder consultations.


Reputational Risks :


Water is a shared and community-sensitive resource. Poor management can affect the company’s social license to operate.


Key Risk Areas:

Community conflicts arising from perceived over-extraction or pollution.

Media scrutiny or NGO activism around industrial water use or effluent discharge.

Loss of brand reputation for unsustainable practices or water-intensive operations.

Social unrest or opposition during expansion or license renewals.


Assessment Methods:

Stakeholder mapping, local community engagement assessment, CSR-water linkage analysis, and perception surveys.


Infrastructure Risks


These risks relate to internal system reliability and external supply infrastructure.

Internal Factors:

Aging pipelines, leaks, pump inefficiencies, inadequate storage capacity.

Unreliable ETP/STP performance affecting compliance and recycling potential.

Lack of water metering and monitoring for real-time consumption control.

External Factors:

Municipal supply interruptions.

Power outages affecting pumping and treatment operations.

Natural calamities (floods, cyclones) damaging infrastructure.

Impact: Production losses, quality issues, and increased operational expenditure.


These relate to physical and operational reliability of water systems within the plant and connected utility infrastructure.

Key Risk Areas:

Aging pipelines, tanks, and pumps leading to leaks or supply failures.

Breakdown of critical treatment systems (RO, Softener, ETP/STP).

Inadequate redundancy in pumping, storage, or treatment units.

Power dependency without backup for water utilities.

Low monitoring or automation leading to poor water accountability.

Assessment Methods:


Utility mapping, maintenance record review, asset health inspection, reliability analysis, and failure mode assessment.


Business Risks


Ultimately, all water-related risks translate into business continuity and financial exposure.

Key Risk Areas:

Production downtime due to water shortages or contamination events.

Increased operating cost for sourcing, treatment, or transport of alternate water.

Loss of product quality due to inconsistent water characteristics.

Regulatory penalties and loss of compliance certifications (e.g., ISO 14001, ISO 50001).

Supply chain disruptions if key utilities (e.g., boiler, cooling) depend on affected water sources.

Assessment Methods:


Scenario-based business impact analysis, risk quantification (probability vs. impact), and formulation of BCP and mitigation matrix.


Conclusion


A holistic Water Risk Assessment enables organizations to:

Identify critical dependencies and vulnerabilities in water sourcing and management.

Develop resilient and diversified water strategies, such as rainwater harvesting, reuse, and demand-side efficiency.

Ensure regulatory compliance and community alignment.

Strengthen corporate sustainability reporting under ESG or CDP frameworks.

Ultimately, the assessment aligns with long-term business sustainability — balancing operational reliability, environmental stewardship, and stakeholder trust.


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     SEA Energy
     Ahmedabad
     Gujarat (INDIA)
     Email id - sea@seaenergy.in

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