LWorld recognises that participation in the precious metals industry involves a range of inherent risks. The company adopts a structured risk management framework to identify, assess, mitigate, and monitor material risks in a disciplined and proportionate manner.
| Risk Category | Description | Mitigation Measures |
|---|---|---|
| Market Risk | Exposure to fluctuations in precious metals prices, foreign exchange movements, and market liquidity conditions. | Transparent pricing linked to international benchmarks, avoidance of speculative positioning, client disclosures on price volatility. |
| Operational Risk | Risks arising from internal processes, systems, human error, or external events affecting day-to-day operations. | Segregation of duties, documented procedures, partner due diligence, periodic reviews, and controlled access to systems. |
| Custody & Storage Risk | Risks related to loss, theft, damage, or misallocation of physical precious metals held in custody. | Use of professional vaulting partners, insured storage, allocated or segregated custody structures, and regular reconciliation. |
| Legal & Regulatory Risk | Risks arising from changes in laws, regulatory interpretations, or non-compliance across jurisdictions. | Engagement with legal advisors, compliance monitoring, jurisdiction-specific assessments, and conservative operating assumptions. |
| Counterparty Risk | Risk of default or non-performance by suppliers, refiners, logistics providers, or trading counterparties. | Careful partner selection, ongoing due diligence, diversification of counterparties, and contractual protections. |
| Reputational Risk | Risk of adverse public perception arising from unethical sourcing, compliance failures, or partner misconduct. | Responsible sourcing policies, AML/CTF controls, transparency, and prompt remediation of identified issues. |
Risk oversight is integrated into management decision-making. Material risks are assessed prior to entering new relationships, products, or jurisdictions. Where appropriate, mitigation strategies are enhanced or activities are declined to preserve the integrity of operations.
LWorld‘s risk framework is subject to ongoing review to reflect changes in market conditions, regulatory expectations, and operational scale. This ensures resilience, sustainability, and long-term alignment with stakeholder interests.