Slide 10 of 22
Policies define the course of action to be taken when specific conditions obtain. When such a situation, or state of affairs, occurs, an obligation is incurred in terms of the policy, and a process is scheduled to fulfill the obligation. Note that an obligation is an objective that flows from a rule such as a law, convention, standard or contract. It is typically incurred when a directive message in terms of a contract is sent from a customer to a supplier, but may be created by a state of affairs that arises without such a message. For example, a contract may require a supplier to maintain a certain minimum level of inventory, which its is obliged to do, even if no directive is received from the customer.