The Reputational risk score represents the likelihood of a company being linked, through traditional or social media news, to a water-related issue, such as drought, flood or pollution, that negatively impacts stakeholders, environment, or wildlife. The Reputational Risk Score is obtained by averaging four risk indicators, each contributing to the final score according to its assigned weight.
Media Attention Indicator:
Does the Media associate water risk-related articles with the Site’s region of operation?
This indicator measures the total number of water-risk-related articles for a given site’s region, and then compares this to 5 sample site’s values, all located in the same country. The scoring is done with the ratio between the site’s number of articles and the maximum of the sample site’s number of articles. For example, if the site has 24 water-risk related articles, and the maximum of all the sample sites is 30 water-risk related news, then the site will have a medium-high score associated with this indicator. The Media Attention Indicator carries weight of 33% for the calculation of the Reputational Risk Score.
Sentiment Analysis Indicator
Are these articles associated with a positive or a negative sentiment?
This indicator calculates the ratio of water-risk articles with a negative tone to the total number of water-risk articles for a given month. To determine the tone of each article, the indicator utilizes a Machine Learning algorithm for sentiment analysis. The Sentiment Analysis Indicator carries weight of 33% for the calculation of the Reputational Risk Score.
Relative Social Interest Indicator
What is the relative social interest in water-related issues of the people in the country, and in the state (or province), where the basin is located?
The difference for the State-level indicator is that this comparison is done between the states of the country. The Relative Social Interest at the Country and State levels indicators carry weights of 16% each for the calculation of the Reputational Risk Score.
