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Gold Jewellery Risk by Raghu G

The document outlines 24 different types of risks faced by a jewellery business. These include gold price fluctuation risks; regulatory and statutory risks from changing government policies; natural disaster and fire risks; theft and burglury risks; custodial risks from staff and customers; product damage risks; digital security risks; competitive risks from other businesses; quality and design risks; pandemic related risks; economic outlook risks; human resource risks; finance risks from changing interest rates; and supply chain, credit, technology and seasonal risks. The risks cover a wide range of internal and external factors that can impact the profitability and operations of a jewellery company.

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851 views3 pages

Gold Jewellery Risk by Raghu G

The document outlines 24 different types of risks faced by a jewellery business. These include gold price fluctuation risks; regulatory and statutory risks from changing government policies; natural disaster and fire risks; theft and burglury risks; custodial risks from staff and customers; product damage risks; digital security risks; competitive risks from other businesses; quality and design risks; pandemic related risks; economic outlook risks; human resource risks; finance risks from changing interest rates; and supply chain, credit, technology and seasonal risks. The risks cover a wide range of internal and external factors that can impact the profitability and operations of a jewellery company.

Uploaded by

Raghu.G
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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RISK IN JEWELLERY by Raghu G, General Manager Manappuran Jewellers Ltd.

1) Gold price risk


a) Gold Price Fluctuation will affect profitability
b) Will affect Replenishment of Inventory
c) Advance Schemes
2) Statutory risk – Regulatory and Trade Policy
a) Notices, Inspection from Sales Tax Dept
b) Changing of Tax, Duty, Cess
c) PMLA act
d) Govt policy on holding of Maximum qty of gold
e) Income tax act - Ceiling on purchase of jewellery against cash
f) Collection of KYC documents
g) Change in EXIM policy on gold jewelries
h) Timely renewal of licences - BIS, Legal Metrology, Shops and Establishment
i) Changes in PF , Gratuity, Labour welfare , ESI rules etc
j) Implementation of E-way Bill
k) PMLA

3) Riots, Natural Hazards, Fire


a) Earthquake, Flood,
b) Fire
c) Riots

4) Theft & Burglary


5) Custodial Risk
a) Theft by custodians
b) Pilferage by Staff
c) Pilferage by customers
d) Stock with agents
6) Damage
a) Due to regular display, inspection etc possibility of damage of item is on higher side
b) Due to Damage, there will be additional Recycling cost and will lose initial making
charge paid
7) Digital Theft and Security Breaches
a) Hacking of Bank accounts
b) Hacking of Kanaka scheme accounts
c) Hacking of customer data base

8) Competitive Risk
a) Competition in making charge
b) Discount offers
c) Competitators opening shop nearby our shops

9) Quality Risk/ Adulteration


a) Supply of Low quality gold by Suppliers
b) Showing less stone weight than actual
c) Fixing low quality precious stones
d) Filling wax
e) Purity loss in old gold
f) Melting loss in old gold

10) Product /Design Risk


a) Non availability of latest designs
b) Failure to maintain optimum stock designs
c) Recycling cost of non moving items
11) Pandemic Risk
a) Closure of shops due to pandemic issues
b) Govt Regulations
12) Economic outlook
a) Change in investment behavior
b) Change in sentimental outlook
c) A bad economic outlook
13) Human Resource Risk

a) Inadequate experienced staff in the shop


b) Resignation of Key Management Personnel
c) Wrong HR Policies
14) Finance Risk
a) Change in Interest Rate by Financial houses
b) Changes in Metal Loan policies by Banks
c) Due to Price Risk, there will be demand from banks for additional collateral /Capital
d) Due to low Credit rating , interest rate may go high
e) RBI Bank Rates
15) Custodial Risk

16) Document Risk


a) Missing of Files
b) Missing of Invoices
17) Supply Chain Risk
18) Credit Risk
a) Default in Repayment
19) Technology risk
20) Seasonal Risk
21) Cyber Risk
22) Technology risk
23) Tariff Risk
24) International events

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