Waterplan’s Regulatory Risk Score is calculated by averaging the scores of 11 indicators that measure different aspects of regulatory challenges. These indicators are scored on a scale of 1 to 5, where 1 represents the lowest risk and 5 the highest.
The first 6 indicators are static and give direct information on water-related governance. They are derived from the IWRM Data Portal, which measures the country’s progress towards achieving SDG 6.5.1 targets. These indicators measure freshwater policy status, freshwater law status, implementation status of water management plans, business participation in water management, basin management instrumentation and aquifer monitoring instrumentation.
The remaining five are dynamic indicators, which are updated annually and derived from the World Governance Indicators by the World Bank. They give a direct indication of the efficacy of a country’s government in establishing an environment to promote the effective management of natural resources, including water. These indicators measure corruption, government ineffectiveness, law non-abidance risk, political instability and regulatory quality.