Abstract

The approaching prospect of obligatory implementation and pursuit of Water Safety Plans forces water companies to reflect on supplies in crisis situations that, for example, relate to the closure of a basic intake, or scarcity of water due to climates changes (droughts). Where supplies are diversified, there can be greater certainty as to the continuity of good quality supply, even in an emergency. As one of each country’s systems of critical infrastructure, the collective water supply system (CWSS) should be protected, with the diversification of supply treated as a basic tool to raise levels of security among consumers. This article, therefore, presents a method from the authors’ by which diversification may be assessed, including by reference to basic and key elements of the CWSS capable of affecting the continuity of water supply. Sample calculations using the proposed method are also presented here for selected Polish cities. In the event, as only one Polish CWSS can be assigned to the category representing excellent diversification, the suggestion is clearly that Poland’s systems must still progress with the diversification of water supply, in order to further reduce the risk of water shortages.

Highlights

  • The term diversification comes from Latin and means variety

  • As only one Polish collective water supply system (CWSS) can be assigned to the category representing excellent diversification, the suggestion is clearly that Poland’s systems must still progress with the diversification of water supply, in order to further reduce the risk of water shortages

  • The proposed method seeks to achieve the rapid and easy assessment of water supply diversification. It can serve as an element of CWSS risk assessment under Water Safety Plans and does not require a large amount of input data

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Summary

Introduction

The concept of portfolio diversification, known in economics, is the most popular, and described as one of the most effective methods of reducing investment risk. This concept means the division of the portfolio into different types of investments, among others, in terms of the type of market (e.g., raw materials, currency, shares, bonds), trade (in the case of shares) or geographical coverage of given entities (e.g., shares, shares funds of enterprises from a specific region). Markowitz applied it in describing a differential investment portfolio, allowing for the selection of such components, as this would reduce risk and maximise profits [2].

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