BUSINESS RULES AND DECISION MODELS Flashcards
(23 cards)
Business operations involve many decisions that need to be ______, _____ , and_____ with company policies and regulations.
consistent, efficient, aligned
Models provide a structured approach to making these decisions in an automated or semi-automated manner.
Business Rules and Decision
It is a statement that defines or constrains a business process. It guides business operations by specifying what should be done and under what conditions.
Business Rules
Key Characteristics of Business Rules:
Specific
Actionable
Independent
Enforceable
– Clearly defines a condition and outcome.
Specific
– Directly influences decision-making.
Actionable
– Can be changed without altering the overall process.
Independent
– Ensures compliance with policies or regulations.
Enforceable
Types of Business Rules:
- Constraint Rules
- Derivation Rules
- Trigger Rules
- Processing Rules
Define limitations on data or processes
Constraint Rules:
Derive new information based on existing data.
Derivation Rules:
Specify when an action should be taken.
Trigger Rules:
Define how data or transactions should be handled.
Processing Rules
“A customer cannot place an order without an email address.”
Constraint Rules
“If a customer spends over $500, they are categorized as a VIP.”
Derivation Rules
“If an employee’s absence exceeds 5 days, notify HR.”
Trigger Rules
“Orders placed after 6 PM will be processed the next business day.”
Processing Rules
Where Business Rules Are Used?
✅ Financial Services (e.g., loan approvals, fraud detection)
✅ E-commerce (e.g., pricing rules, discount policies)
✅ Healthcare (e.g., patient eligibility, insurance claims)
✅ Manufacturing (e.g., quality control, supply chain processes)
What are the decision models?
- Decision Trees
- Decision Tables
- Rule-Based Systems
- Machine Learning Models
decisions.
A hierarchical model that represents decisions as branches.
Decision Trees
A tabular representation of rules and outcomes.
Decision Tables
Uses IF-THEN logic to automate decisions.
Rule-Based Systems
Uses data patterns to automate complex decisions.
Machine Learning Models
