If a faction attacks you, kills your hero, or does anything hostile towards you, a new mission (Grudge) to complete will appear in the Great Book of Grudges. In short it's associated with short missions given to the player in accordance to enemy activity against your country. As soon as the game starts you will be informed about the grudge system. You begin the campaign with a single Lord (together with a small army), as well as with the capital city of The Silver Road province, Karaz-a-Karak.
The beginning of your adventure with the Dwarves.