In a vendor-managed inventory(VMI) supply chain coordination problem with a risk-averse supplier under product quality and customer service investment, the conditional value-at-risk(CVaR) criterion is adopted to model risk aversion of the supplier, and a combined contract composed of option and cost sharing is proposed to investigate coordination and profit allocation issues of the supply chain with a Stackelberg game in which the retailer acts as the leader. It is found that the supplier's optimal production quantity decreases as the risk aversion coefficient increases, while both optimal quality and service levels are independent on the risk aversion coefficient. Furthermore, coordination of the supply chain is achievable only when the supplier is low in risk aversion, and the supplier's risk aversion is a significant factor for contract design and profit allocation.