This paper first defines hazard, vulnerability and risk in the particular context of drought assessment and prediction. It then presents some strategies to reduce water risk in three major categories: (1) more irrigated agricultural land in an efficient manner; (2) increased and better managed pasture and forest areas to benefit from otherwise lost water by evaporation process, increasing animal productivity; (3) well water managed dryland agriculture. In dryland agriculture, some additional public measures are necessary, mainly drought risk insurance and early warning systems, in order to promote investment in drought-prone environments and to provide tools for decision-making.