Objective
To help companies understand and identify the most important (salient) risks in their supply chains, based on their specific circumstances, sourcing practices, and business model.
Why this matters
Identifying salient risks is a critical step before developing policies, procedures, or supplier engagement tools. It helps companies focus efforts where they can have the greatest impact and avoid spreading limited resources too thinly.
This step aligns work with international frameworks including the OECD Due Diligence Guidance, UN Guiding Principles on Business and Human Rights (UNGPs), and the RJC Code of Practices.
Key actions checklist
- Step 1: Review your own supply chainConsider where raw materials come from, whether any suppliers are based in high-risk geographies, and whether any suppliers are certified against relevant standards.
- Step 2: Review existing resources and stakeholder expectationsUse the OECD Due Diligence Guidance Annex II, RJC Code of Practices guidance, UN Guiding Principles on Business and Human Rights, and FATF Recommendations.
- Step 3: Prioritise risks based on severity and likelihoodScore each risk: Severity (1–3) × Likelihood (1–3) = Total. Score 6–9 = salient (act now); 4–5 = monitor; 1–3 = low priority.
Common risks in the jewellery sector include: child labour (particularly in artisanal mining), health and safety violations in manufacturing, sourcing from conflict-affected and high-risk areas (CAHRAs), bribery and corruption, gender-based discrimination, and forced labour including excessive mandatory overtime.