CDG Risk Assessment & Mitigation 2

Question 1

Which risk is most critical when grading a diamond submitted alongside a GIA grading report?

Accepted Answer

Assuming the report is authentic without verification

Answer

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?

Accepted Answer

Risk that a stone on consignment is not returned or paid for

Answer

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?

Accepted Answer

Stone switching by the client

Answer

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?

Accepted Answer

Photographing the stone before and after grading

Answer

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?

Accepted Answer

Using individually labeled containers for each submission

Answer

Individual labeled containers ensure each stone is tracked and physically separated from intake through return.

(CDG) Certified Diamond Grader Practice Test