ABSTRACT
Reputational risk is the most challenging aspect of water risk to predict and quantify. While physical risk and regulatory risk can be quantified and projected more readily, reputational risk almost always is far more challenging. Reputational risk has the ability to result in business disruption and potentially stranded assets. While companies typically focus on reputational risks related to water, only very few exploit the opportunity to develop a transparent water stewardship strategy that is woven into their brand strategy. The researchers' goal was to "figure out what role these stakeholder events played in companies' efforts to maximize profits." The willingness-to-pay research is relevant and timely for water stewardship and challenges with reputational risk. The researchers concluded that "the value of the relationship with politicians and community members is worth twice as much as the value of the gold that the 26 mines ostensibly control.".
