In the department of Water and Climate Risk, explicit attention is given to the interaction between the hydrological and climate systems, and how these interactions lead to risk to society, the economy, and the environment. The focus is on water and climate extremes such as floods and droughts, to estimate impacts from these extremes on various economic sectors, and to examine which strategies can be developed to reduce impacts and risk. This requires the mapping of climate and water-related hazards, as well as the exposure of people and assets and their vulnerability, and estimating associated costs to reduce risk. Risk management and risk transfer strategies are evaluated in the context of both developed and developing countries. Model simulations, data processing, data assimilation and the integration of economic instruments, such as insurance, are key scientific strengths of the department.