CDG Risk Assessment & Mitigation 2 — Questions and Answers
Question 1: Which risk is most critical when grading a diamond submitted alongside a GIA grading report?
- Assuming the report is authentic without verification (Correct answer)
- Over-grading the color by one grade
- Misidentifying the stone's shape
- Using incorrect microscope magnification
Correct answer: Assuming the report is authentic without verification
Report fraud exists, so cross-referencing the laser inscription and physical characteristics against the document is essential before relying on it.
Question 2: What is 'memo risk' in the diamond trade?
- Risk of losing the diamond's paper certificate
- Risk that a stone on consignment is not returned or paid for (Correct answer)
- Risk of misremembering handwritten grading notes
- Risk of an incorrect weight entry on a parcel memo
Correct answer: Risk that a stone on consignment is not returned or paid for
Memo (consignment) arrangements carry financial risk if the recipient defaults, loses, or damages the stone without paying.
Question 3: When grading a parcel of melee diamonds, what is the primary risk to the grader?
- Eyestrain from extended microscope use
- Stone switching by the client (Correct answer)
- Incorrect tare weight on the scale
- Confusing clarity grades between individual stones
Correct answer: Stone switching by the client
Melee parcels present stone-switching risk because individual small stones are virtually impossible to track without unique identifiers.
Question 4: Which documentation practice best mitigates the risk of disputes after diamond grading?
- Photographing the stone before and after grading (Correct answer)
- Verbal confirmation with the client at pickup
- Recording only the final grade in the lab log
- Using shorthand notation to speed up intake
Correct answer: Photographing the stone before and after grading
Before-and-after photographs provide objective visual evidence of a stone's condition and characteristics that is difficult to dispute.
Question 5: Which practice best reduces the risk of accidental mixing of multiple clients' diamonds?
- Storing all incoming diamonds in the same communal tray
- Using individually labeled containers for each submission (Correct answer)
- Grading multiple clients' stones simultaneously to save time
- Relying on visible color differences between the stones
Correct answer: Using individually labeled containers for each submission
Individual labeled containers ensure each stone is tracked and physically separated from intake through return.
Question 6: What risk does accepting a diamond for grading without completing an intake condition report create?
- Increased grading turnaround time
- Inability to assess color accurately
- The grader may be held liable for pre-existing damage (Correct answer)
- Difficulty in scheduling the final appraisal
Correct answer: The grader may be held liable for pre-existing damage
Without documenting pre-existing chips or scratches at intake, the grader can be falsely blamed for damage that was already present.
Question 7: Why is regular recalibration of carat scales an important risk mitigation step?
- Scale drift can cause incorrect weight readings that directly affect value assessments (Correct answer)
- Scales influence color grade accuracy under standardized lighting
- Regular calibration improves the clarity assessment process
- It prevents small diamonds from being lost inside the scale housing
Correct answer: Scale drift can cause incorrect weight readings that directly affect value assessments
Even minor weight discrepancies can significantly affect a diamond's assessed value and expose the grader to client disputes.
CDG Risk Assessment & Mitigation 2
Which risk is most critical when grading a diamond submitted alongside a GIA grading report?