Water is increasingly being recognised as a material business risk that many companies are still not well-equipped to deal with. Despite a raft of water-risk focused initiatives, methodologies and guidelines, the challenge of managing the strong link between the technical and operational water issues, along with the growing external challenges and interests in water, remain a significant risk to a company's ability to deliver value.This paper provides an overview of the key lessons learnt from ERM's experience of working with companies across a range of water sensitive industry sectors, in particular, the mining and oil and gas sectors, to develop and implement practical approaches to manage business critical water risk. These examples highlight the importance of managing water risk by linking technical and operational aspects of water management - with the longer term strategic and social license aspects. Four key ingredients were identified that are central to providing companies with a leading edge in the successful mitigation of water risk: understanding and evaluating water risk including the technical and operational aspects of water management, plus the longer term strategic and social aspects articulating a strong business case that prioritises water risks and their financial exposure to the organisation constructing a clear roadmap that practically links the water strategy objectives with on-the-ground implementation and action building capacity in the organisation to manage, engage and coordinate on water to mitigate risk._x000D_
CITATION:Ringwood, K and Tang, A, 2013. Practical approaches to managing business critical water risk, in Proceedings Water in Mining 2013, pp 293-300 (The Australasian Institute of Mining and Metallurgy: Melbourne).