Global Supply Chain Quality Management

52 ◾ Kim Hua Tan, Ying Kei Tse, and Jie Chen

is model clearly demonstrates the two key elements that increase risk.

Variability stems from the volatility of external environment and reects the objec-

tive nature of risk. It increases the level of uncertainty and thus increases risk. Lack

of information indicates ambiguity in the decision-making process and reects the

subjective nature of risk. It not only increases the level of uncertainty but also low-

ers the controllability of uncertainty and condence in the estimates.

4.3 Supply Chain Quality Risk

In the context of a product harm crisis, quality risk is the extent to which there are

di ...