| Summary: | Drought characterization and risk assessment are of great significance due to drought’s negative impact on human health, economy, and ecosystem. This paper investigates drought characterization and risk assessment in the Lempa River basin in Central America. We applied the Standardized Evapotranspiration Deficit Index (SEDI) for drought characterization and drought hazard index (DHI) calculation. Although SEDI’s applicability is theoretically proven, it has been rarely applied. Drought risk is generally derived from the interactions between drought hazard (DHI) and vulnerability (DVI) indices but neglects resilience’s inherent impact. Accordingly, we propose incorporating DHI, DVI, and drought resilience index (DREI) to calculate drought risk index (DRI). Since system factors are not equally vulnerable, i.e., they are heterogeneous, our methodology applies the Analytic Hierarchy Process (AHP) to find the weights of the selected factors for the DVI computation. Finally, we propose a geometric mean method for DRI calculation. Results show a rise in DHI during 2006–2010 that affected DRI. We depict the applicability of SEDI via its relationship with El Nino-La Nina and El Salvador’s cereal production. This research provides a systematic drought risk assessment approach that is useful for decision-makers to allocate resources more smartly or intervene in Drought Risk Reduction (DRR). This research is also useful for those interested in socioeconomic drought.
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