Canadian businesses must incorporate water-related challenges into risk management programs: Marsh

Canadian businesses must develop a strategy to better understand and prepare for water-related challenges, or they risk halting operating due to water shortages, water quality or water safety issues, according to Marsh Canada Limited.
In its report, A Review of Water-Related Opportunities and Threats, Marsh identified a series of water-related risks for Canadian businesses, including plant shutdowns, increased operational costs, liability claims and loss of reputation.
To develop an effective water management strategy, Marsh recommended a series of actions. These include:
• identify water-related challenges and assessing the potential impact on an organization. This includes conducting scenario analyses to evaluate the potential changes to water quality and availability, or changes in regulations;
• consider risk management options. Organizations should develop a dialogue with stakeholders and, when feasible, water risk management initiatives should be made public;
• plan for potential water-related risks. Develop and regularly test continuity plans and provide essential training;
• develop a risk strategy to be integrated into decision-making. Companies should form a sustainability management team, potentially with board oversight, to develop such plans and integrate them into broader strategic planning and policy development; and
• develop a strong water-conscience culture. This can be accomplished with a clear message and tone from leadership, a strong risk management vision, training and awareness campaigns, performance management and compensation and incentives.
“Many of the water-related challenges and opportunities facing organizations will demand integrated management, operation and financial expertise and effective policies,” said Steve Osselton, managing director and Canadian practice leader at Marsh Risk Consulting. “Organizations that demonstrate risk management leadership in this area will more effectively be able to manage and exploit this emerging risk.”