Shanghai is facing increasing pressure on water environment as a result of large high-density population and economic development. People have so vague awareness on the water-related risks that they can not focus measures to avoid risks. The aim of this study is to explore the potential risks that Shanghai may face stemming from its exposure to water problems. There are three kinds of risks that Shanghai faces: physical, regulatory and reputational risks. Physical risk that Shanghai faces relates to water quantity (flooding) and water quality that is unfit (pollution) for ecological and human health and use. Regulatory risk relates to the imperfection of water laws and regulations promulgated by different levels of governments. The imperfection may exist in the pricing of water supply and waste discharge, licenses to operate, water rights and quality standards, water strategy and planning promulgated by governments, and the implementation of water-related laws and regulations. Reputational risk emerges through tensions of public demand on safe water and water degradation reported by media. We set up a water-related risk indicator system to assess the above risks. The analytic hierarchy process is used to analyze the indicator system and calculate the risk value based on the exponentially weighted model. This study can let stakeholders clearly recognize the water–related risks and promote more specific sustainable water management.
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