Industrial Engineering Journal

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An Innovation Route of Subcontract Risk Management Based on Three-dimensional Evaluation Model

  

  1. School of Economics and Management, Beihang University, Beijing 100191, China
  • Online:2016-12-31 Published:2017-02-22

Abstract:

Aiming at the limitations of traditional two-dimensional evaluation model, a three-dimensional evaluation method is presented based on risk impactprobability matrix. By adding the detectability index, the issue of risk assessment faced by suppliers in subcontracting activity can be resolved and the assessment results corrected. Two-dimensional and three-dimensional evaluation models are built and a quantitative analysis by Borda count method in an aviation subcontracting case is conducted, which proves the effectiveness and correctness of the methods.

Key words: contract risk, risk assessment, three-dimensional model