A Business Rule is a constraint on how an organization operates, enforced by data, processes, or policies. Business rules define acceptable behavior, decision-making criteria, and operational limitations, ensuring compliance with company policies and regulations.
Key Aspects of Business Rules
- Govern Operations – Define how business processes must function.
- Enforced by Data & Processes – Applied through systems, workflows, or policies.
- Within Business Jurisdiction – Controlled and maintained by the organization.
- Require Solution Support – Must be implemented through business or system requirements.
Types of Business Rules
- Decision Rules – Define conditions for making business decisions.
Example: A loan application is rejected if the credit score is below 600. - Process Rules – Establish how workflows should function.
Example: Invoices must be approved by a manager before payment is issued. - Data Rules – Control data integrity and formatting.
Example: Customer IDs must be unique and follow a standardized format. - Regulatory Rules – Ensure compliance with legal or industry standards.
Example: Healthcare data must be stored in compliance with HIPAA regulations.
Example Scenarios
E-Commerce
- Orders over $500 require manual approval before processing.
Banking & Finance
- Interest rates are calculated based on customer credit score and loan term.
Healthcare
- Medical records must be encrypted and only accessible to authorized personnel.
Why Business Rules Matter
- Ensure Compliance – Maintain alignment with legal and regulatory requirements.
- Improve Consistency – Standardize decision-making and operational workflows.
- Enhance Process Efficiency – Reduce ambiguity and automate business operations.
- Support System Implementation – Provide clear guidelines for software and process development.
See also: Solution Requirements, Process Governance, Regulatory Compliance, Operational Constraints.