Water Risk and Its Impact on the Financial Markets and Society New Developments in Risk Assessment and Management

Water risks, including the lack of access to fresh water for personal and industrial use, droughts, floods, and water contamination, are problems that are not new, yet, they are amplifying in the face of climate change, population growth, and rapid economic development. Properly identifying, measuring, and managing these risks as well as taking advantage of related mitigation opportunities is essential for the future well-being of firms across various industries, investors who invest in these firms, local and federal governments, and ultimately our society as a whole. 

This edited book sheds light on this topic by examining the unique measurement and modelling challenges associated with either the scarcity or overabundance of water and their interaction with finance and society. Specifically, it explores approaches to assess and operationalize water risk, examines the vulnerability of institutions and markets, and discusses strategies for risk mitigation. 

Chapter 1: Introducing Water Risk: A Framework for (Integrated) Water Risk Assessment and Management.- Part 1: Assessing Water Risk: Frameworks, Models, and Tools.- Chapter 2: Data for Water Risks: Current Trends in Reporting Frameworks, Shortcomings, and the Way Forward.- Chapter 3: How Do Investors Assess Water Risk?.- Chapter 3: How Do Investors Assess Water Risk?.- Chapter 4: The Developing Field of Water Risk Valuation for the Financial Industry.- Chapter 5: Financial Implications of Parched Power: Insights from an Analysis of Indian Thermal Power Companies.- Chapter 6: Water Insecurity and Climate Risk: Investment Impact of Floods and Droughts.- Chapter 7: Chronic Coastal Threats Warrant Valuation Re-Think.- Part 2: Managing Water Risk: Investing in the Future.- Chapter 8: Water Risks, Conflicts and Socially Responsible Investment: A Case Study of Ontario, Canada.- Chapter 9: Forward Pricing of Embedded Water – A Step Towards Sustainable Development in Agriculture.- Chapter 10: Misbehaving Drinking Water Systems: Risk and the Complex Nature of Failure.- Chapter 11: Multi-dimensional and Interacting Water and Climate Risks and Pricing them in the Industry Context.- Chapter 12: Water Risk: An Overview and Inspiration for Future Work.- Index.

Thomas Walker is Professor of Finance and Concordia University Research Chair in Emerging Risk Management at Concordia University, Montreal, Canada. Prior to academia, he worked for several years in the German consulting and industrial sector at Mercedes Benz, Utility Consultants International, Lahmeyer International, Telenet, and KPMG Peat Marwick.

Dieter Gramlich is Professor of Banking & Finance at DHBW – Baden-Wuerttemberg Cooperative State University in Heidenheim, Germany, where he serves as Head of the Banking Department. He previously studied at the University of Mannheim and was an interim professor and Chair of Banking and Finance at the University of Halle in Germany.

Kalima Vico is a research associate at the Emerging Risks Information Centre (ERIC) at Concordia University, Montreal, Canada. She previously worked for Concordia’s David O’Brien Centre for Sustainable Enterprise.

Adèle Dumont-Bergeron is an MA student in English literature and creative writing at Concordia University, Montreal, Canada. She currently serves as a research associate at the Emerging Risks Information Centre.