A Framework of Warranty Risk Management

Warranty is a useful tool for a manufacturer to reflect its product quality and combat competition. It, however, introduces various risks that may have a direct impact on the profitability and reputation of the manufacturer. Although managing such risks is crucial in reducing the number of warranty incidents and warranty related cost, little research has systematically investigated warranty risk management (WaRM). As such, this paper aims to (1) analyse the existing literature on warranty-related risks; (2) develop a generic WaRM framework; (3) investigate the existing WaRM techniques and methods by surveying the warranty decision makers in the automotive industry in the UK, and then (4) propose a warranty hazard identification tool through utilising social media data.