Water.org’s current risks and barriers to scale include concerns over misuse of loans, operational delays, fraud, error, and security, all of which undermine Water.org's objectives and mission. 

● FRAUD: These deceptions often include manipulation of documents or the abuse of policies, procedures or office property. For example, in absence of a well-designed process for selection of a raw material supplier for the construction of toilets, operations staff can collude with dishonest suppliers and procure cheap, low-quality material at high rates, which could create infrastructure failures and lead to credit risk. 

● ERROR: Errors are typically unintentional and result due to lack of staff capacity and training, rapid growth, limited technical resources, or an inadequate number of staff. Errors in judgement or incorrect interpretation of policies, procedures, documents, or cash transactions can create problems for an FI. For example, a branch manager might make an error in the appraisal of a WASH loan client if s/he has not received training on WASH lending. 

● SECURITY: This refers to risk of cash or material theft. For example, for FIs that are involved in provision of construction materials, the storage of the materials and their delivery is a risk. 

● INEFFICIENCY: Risk is created when there is low staff productivity or ineffective management leading to loss of efficiency. 

● CREDIT RISK: An assessment of credit risk at Water.org investigated whether the credit policies and procedures are correctly followed and administered by the FI staff. This includes reviewing whether credit transactions are properly recorded and summarized in the account tracking system and presented in the financial and portfolio reports. For example, an FI in the Philippines had a loan product tenure of three months even though loan sizes were quite high. Clients who were assessed to be qualified for a loan of PHP 15,000 (US$340) ended up actually receiving nearly 

PHP 35,000 (US$793) over the course of a year, through multiple loan cycles. This flaw in the loan product design resulted in large-scale delinquency problems with clients in the third and fourth loan cycles 

Our Suggestion: Water.org 2.0, Blockchain and Energy 

Our research shows Water.org currently lacks developed, effective, accountable and transparent institutions reporting processes globally. Their published internal studies highlight FI corruption and bribery in all forms. Blockchain technology could help solve this, only implemented globally and monitored correctly. 

Most importantly, we strongly recommend Water.org executives should leverage blockchain and current partnerships, historically and radically innovating Water.org’s global scope to include solar energy in North Africa. 

● Immediate Recommendation: Essential for Water.org’s global development reporting work to be organized and oriented in the same direction in order to focus on what really matters and ensure proper transparency and figures. Water.org has been working on the nieve, poor business assumption that goals can be achieved with enough political will, investment and action at all levels. 

○ Integrated water resources reporting via Blockchain, include management smart contracts at all levels, including Water.org funds to FI, FI internal use of Water.org funds, client use of funds through to contractor 

● Review Loan/Product Benefit: Water.org’s global executive team has not reflected the importance of complete sustainable development for their clients. Internal Data shows most Water.org wells/loan proceeds are ultimately lost, as the individual navigates life with unsolved energy and lack of access to basic economic/financial tools. 

● Innovate Water.org’s Scope: Once defining clear and unified global standards, practices and reporting transparency on blockchain, eliminating current fiance transparency concerns 

○ Microcredit water loans alone do not solve poverty (noted above) 

○ Current UN research shows best poverty success advancement includes addressing three important dimensions simultaneously: 

i. Regular access to clean water/proper sanitation facilities 

ii. Access to affordable, reliable and sustainable energy 

iii. Equal access to mobilized banking tools, insurance and microscred 

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