The two dimensions are inextricably linked and inter-dependent, but nevertheless it is useful to
consider separately events that may go wrong physically and operationally versus those from a
planning and management perspective. There is a wide range of potential for failure inside the
company in the same way as with suppliers (supply risk) and customers (demand risk). Again these
risks impact both on the ability to create and satisfy customer demand. The result is that sales
and profitability will fall below expectations. A breakdown in the company’s processes can be
experienced in some or all of the following ways