Operational Risk and Resilience

and subject to variations because of economic and market

influences; growth may also occur as a result of the introduc-

tion of new products, or an expansion into new markets. Peak

capacity demands may be cyclical due to seasonal activity,

random due to external influences outside an organization’s

control or predictable as the result of one-off events. At times

of recession, low growth and low demand, however, organiza-

tions can find that they suddenly have too much capacity,

leading to declining costs and profitability.

Capacity management issues impact service, utilities and man-

ufacturing organizations in similar ways. However, the options

available ...