Vulnerability Assessment Report: Risk and Due Diligence Analysis

This report presents a comprehensive vulnerability assessment of a water supply system project, as part of a Risk and Due Diligence assignment. It begins with an introduction to risk management and due diligence, highlighting the importance of identifying and mitigating potential risks. The core of the report focuses on applying the vulnerability assessment technique to the water supply system, detailing the critical success factors (assets like employees, finance, information, and infrastructure), identified threats (natural and human-related), and critical vulnerabilities (poor design, water source shortages, pipe damage, and treatment plant issues). The report then provides a precautionary analysis, offering recommendations for timely risk identification, emergency response, and system reconstruction. The report emphasizes the importance of proactive measures to reduce vulnerabilities within the water supply system, promoting a preventive approach to risk management. References and appendices support the analysis, providing additional context and detailed information related to the assessment.

Running Head: Risk & Due Diligence 1
Introduction Risk & Due Diligence
Student’s Name
University
Date

Risk & Due Diligence 2
Table of Contents
Introduction....................................................................................................................................2
Vulnerability Assessment Technique...........................................................................................3
Water Supply System Project.......................................................................................................3
Critical Success Factors................................................................................................................5
Threats and Selection Method......................................................................................................6
Natural threats...........................................................................................................................6
Human threats............................................................................................................................6
Critical Vulnerabilities..................................................................................................................7
Precautionary Analysis.................................................................................................................8
References.....................................................................................................................................10
APPENDIX...................................................................................................................................12

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Introduction
For a business or any other project is required to perform a Due Diligence and Risk management
with an aim of controlling potential risks. Before exploiting business or project resources, one is
advised to perform Due diligence which will ensure success of achieving the main objectives of
the project. Therefore, due diligence can be defined as the technique of risk management, which
is developed to deal with expected risk within the progress of the plan (McDonald, 2018). The
different risk to mitigate can be economical, social, environmental, technological, or legal threat
facing the project. If due diligence is performed accordingly, it will help to manage the risk in a
better way thus achieving a realistic timeframe of the project, better management of financial and
operational judgment, and finally enhance smooth assessment of the project/organization.
The influence of risk effects are common issues within the organization, business
projects, and any other activities of our daily life. Using due diligence will help to minimize
these risks, like performing Vulnerability assessment can be used as a successful technique to
reduce the risks for any existing project within or outside the organization projects activities.
Therefore, in this paper Vulnerability Assessment techniques will be the chosen methodology to
be used to identify and reduce any real risk within a project/enterprise of any other form of
business (Sousa et al., 2018). See appendix 1.
Vulnerability Assessment Technique
Identifying, managing, and reducing risk within organization systems or projects is an
essential activity amongst other strategies set to be achieved by the team. Vulnerability
Assessment technique is one of the most chosen, which is used to identify and successfully

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mitigates risk. Therefore, a vulnerability assessment can be defined as the process of identifying,
classifying, and ranking the vulnerabilities in a system (Salas and Yepes, 2018). Several systems
which can be assessed include, Information Technology system, transportation system, energy
supply system, water supply system, and communication system, among others. Performing
vulnerability assessment can be conducted according to the potential or existing threats within a
system from small to a broad range of the infrastructure available. This assessment helps to
acquire critical knowledge about the risk, awareness, and the background of the risk related to its
interaction environment.
Water system project is the selected project which is going to be discussed in this paper
through the application of Vulnerability Assessment technique knowledge.
Water Supply System Project
The main issue in this project is on how to reduce risks associated with the water supply
system. The most expected risks to be associated with this system is an accident from dam
failure, biological and chemical risks, and other natural calamities about the system. Therefore,
vulnerability technique will develop the structure which will be implemented to identify and
reduce those risks. Vulnerability assessment is composite by weaknesses in internal system
control, software, infrastructure installation, and security rules, which will affect the
confidentiality, integrity, availability, and accountability of information (Jha and Gundimeda,
2019.). Through the use of this technique will provide the means and reduce of the risk, which
may occur to the system.
The water supply system is a project which is composed of many resources like pipes
which are used as a water transmission channel, treatment plants, and water network which are

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used for water distribution (See appendix 2). However, these subsystems they attract the highest
chances to be influenced by both human and natural effects, which may lead to weakness of
them. Research has identified several potential threats which may come out during the process of
delivering water to the clients from the source (Vörösmarty et al., 2010). To understand this
system and how it works, one is supposed to understand the main activities to be performed
within the system likes of water sources, treatment method of plants which take away impurities
and dangerous agents thus making water safe for domestic use, how clean water is delivered to
human destination for domestic or commercial use, storage techniques, and other facilitates
involved in the whole process of the system (Pagano et al., 2018). Therefore, to all this system,
they should be a risk management methodology which is required to assesses, manage, and
reduce any potential or existing threat which might affect the water supply system negatively.
The cause of any damage may influence many parties, including social, economic,
environmental, and organization factors within the project. The affected area is termed as the
asset of the project system, which are essential factors to contribute to the success of the project.
Therefore, the following are the identified assets of the project and the reasons why they have
selected within the project.
Critical Success Factors
For the success or failure of the water supply system, it will depend on these factors
which are within the project. These factors are recognized as the asset of the project since they
will be influenced in one way or the other by the identified threat within the system. These assets
include employees, finance, information, and infrastructure, among others (Torres-Ruiz and
Ravindran, 2018). These factors are considered to be a critical asset for success since they
support the investigation of risk and maintenance of an essential section of project operation like

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finance. All these assets selected they work simultaneously in achieving the same goal of making
project success through having a common understanding of risk effects, and how they will
manage risk identified within the system. Another reason for selecting these assets is because of
the act as third-party subsystems which they perform their duties across all component of the
system providing safety, financial support, reputation value, mechanical and any other social
support available needed. For example, how financial and employee factors are essential in the
vulnerability risk assessment technique. In case, risk and threat occur within a system;
employees will be required to apply their skills in maintaining and protecting adverse effects;
thus, enough number and professional employees are required for successful operation. Finance
asset is also very essential since without finance no process can be performed, like motivating
these employees to perform their duties actively, replace damaged pipes, offering safe treatment
of water and controlling all activities within the water supply system (Ul-Hameed, Mohammad
and Shahar, 2018). Therefore, these factors are essential while identifying, assessing, and
reducing the effects which may influence all other asset and subsystem in the whole project.
Threats and Selection Method
In the system of water supply, they are the existence of many potential risks which may
affect the composition of the water system negatively. These threats are moderated highly due to
the vulnerabilities which may occur within the system, thus affecting the performance of the
project. These threats in the water supply system are identified and selected using related hazard
like both natural and human-related threats (Berrouet, Machado and Villegas-Palacio, 2018). All
these threats are highlighted below according to the selection method and consequences. See
appendix 3.

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Natural threats
Threats Consequences
Earthquake: Loss of power, pipe damage, and the collapse of the
structure
Flooding: Contamination and loss of treatment system
Drought: Water quality problem and shortage
Wind: Loss of power, pipe damage, and destruction of the
structure
Waterborne diseases: Sickness, confidence loss from public, death
Severe weather: leaks and outrages, frozen pipe, high water use
Human threats
Threats Consequences
Cyber threat: Attacking of electronic viruses and worms, jamming, network
flooding
Physical threats: Destruction of the system through physical actions will interrupt
water supply operations, Bacterial build-up within the system,
main breaks from hammer opening and closing of control valves
Chemical threats: Health problems, panic, death of clients, therefore, leading to loss
of public confidence.

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Critical Vulnerabilities
Within the water supply system, there are many potential risks/threats which may, and
their effects being calculated using vulnerability assessment. Using vulnerability technique will
be very to estimate and reduce the occurrence of the risk. However, this means to identify water
System vulnerabilities; there should be countermeasure which should be implemented to
analyses and reduce risk performance (Romero‐Lankao and Norton, 2018).
These critical vulnerabilities within the system they occur in between the primary and
subcomponent of the system. These vulnerabilities are identified according to the subsystems the
effect; thus, dealing with both potential and existing threat accordingly. Therefore, this
methodology provides a determined way of sorting out the critical vulnerabilities. The following
are essential vulnerabilities which are within the water supply system project. Poor design of the
whole water supply system like poor drainage, the loose connection of pipes, and layout, among
others, may lead to weak and shortage of the water since water system is not designed according.
The source of water is a river, and therefore if there is a shortage of water from the sources, it
causes threats to human life who depends on this water. Pipes are sub-component used for water
transmission within the system and to the final consumers; therefore, if they get damaged or
breakage like leakage, water will not be supplied successfully to the destination (Zimmermann,
Winker and Schramm, 2018). Another critical vulnerability within the system may occur within
the water treatment plants. Water is treated to ensure the safety of human life; therefore, if the
water is not managed well may result in waterborne diseases which may cause problems to
human health (Machiwal et al., 2018). Through the implementation of Vulnerability assessment

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framework will help to identify, asses, and mitigate all potential and existing vulnerabilities
within the water supply system.
Precautionary Analysis
After Vulnerability assessment is performed successful thought the whole system of the
water supply, now the recommendation of the assessment should be produced for amendment or
future use. The technique was successfully used through investigating by identifying the critical
assets, threats, and main vulnerabilities and how are going to be handled accordingly. The
essential knowledge which is required is how to implement the use of the framework of
Vulnerability in two-dimensions. The precaution which is needed to be implemented for more
success of the water supply system will be handled as the basic objectives which are required to
achieve in the process of reducing vulnerabilities.
Timely investigation and identification of both real and potential risks and threats. The
main aim of this objective is to maximize the effort of indicating the potential threat. This helps
to keep watching out and having knowledge of all the sub-component of the whole system and
how they operate daily.
Timely reaction to the emergencies. The goal of this action is to increase the rate of
response in dealing with the emergency actions of risks. This involves activating the security
system and motivate smooth communication amongst all parties within the system. Performing
all this will reduce the loss of life and destruction of the water infrastructure.
Reconstruction and rehabilitation of the management system. The organization is
required to perform and have an effective rehabilitation management system which will enhance
enough effort to reduce and protect the threats.

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Recruiting and maintain motivational and skilled human labor. This will help to handle
any emergency or risk safely. The action will improve the water service to the community,
therefore, creating a good reputation of the organization, thus, reducing risk mentally from the
clients.
All the objectives will facilitate effective technique of dealing with vulnerability
reduction through the recognition of essential “preventive concept” rather than “responsive
strategy.” Using another word, it means it is better to reduce risk and vulnerability "before"
rather than "after" the incident occurs. See Appendix 4.
References
Berrouet, L.M., Machado, J. and Villegas-Palacio, C., 2018. Vulnerability of socio—Ecological
systems: A conceptual Framework. Ecological Indicators, 84, pp.632-647.

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Jha, R.K. and Gundimeda, H., 2019. An integrated assessment of vulnerability to floods using
composite index–A district level analysis for Bihar, India. International Journal of Disaster Risk
Reduction, p.101074.
Machiwal, D., Jha, M.K., Singh, V.P., and Mohan, C., 2018. Assessment and mapping of
groundwater vulnerability to pollution: Current status and challenges. Earth-Science Reviews,
169, pp.44-67.
McDonald, B.J., 2018. Service provider due diligence: An overview. Journal of Financial
Compliance, 1(4), pp.337-344.
Pagano, A., Pluchinotta, I., Giordano, R., Petrangeli, A.B., Fratino, U. and Vurro, M., 2018.
Dealing with uncertainty in decision-making for drinking water supply systems exposed to
extreme events. Water resources management, 32(6), pp.2131-2145.
Romero‐Lankao, P. and Norton, R., 2018. Interdependencies and Risk to People and Critical
Food, Energy, and Water Systems: 2013 Flood, Boulder, Colorado, USA. Earth's Future, 6(11),
pp.1616-1629.
Salas, J., and Yepes, V., 2018. Urban vulnerability assessment: Advances from the strategic
planning outlook. Journal of cleaner production, 179, pp.544-558.
Sousa, L., Silva, V., Marques, M., and Crowley, H., 2018. On the treatment of uncertainty in
seismic vulnerability and portfolio risk assessment. Earthquake Engineering & Structural
Dynamics, 47(1), pp.87-104.
Torres-Ruiz, A. and Ravindran, A.R., 2018. Multiple criteria framework for the sustainability
risk assessment of a supplier portfolio. Journal of cleaner production, 172, pp.4478-4493.

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Ul-Hameed, W., Mohammad, H. and Shahar, H., 2018. Microfinance institute’s non-financial
services and women-empowerment: The role of vulnerability. Management Science
Letters, 8(10), pp.1103-1116.
Vörösmarty, C.J., Green, P., Salisbury, J. and Lammers, R.B., 2010. Global water resources:
vulnerability from climate change and population growth. science, 289(5477), pp.284-288
Zimmermann, M., Winker, M. and Schramm, E., 2018. Vulnerability analysis of critical
infrastructures in the case of a semi-centralised water reuse system in Qingdao,
China. International Journal of Critical Infrastructure Protection, 22, pp.4-15.
APPENDIX
Appendix 1

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Appendix 2
Appendix 3

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Appendix 4