BUSINESS RULES AND DECISION MODELS Flashcards

(23 cards)

1
Q

Business operations involve many decisions that need to be ______, _____ , and_____ with company policies and regulations.

A

consistent, efficient, aligned

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2
Q

Models provide a structured approach to making these decisions in an automated or semi-automated manner.

A

Business Rules and Decision

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3
Q

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.

A

Business Rules

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4
Q

Key Characteristics of Business Rules:

A

Specific
Actionable
Independent
Enforceable

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5
Q

– Clearly defines a condition and outcome.

A

Specific

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6
Q

– Directly influences decision-making.

A

Actionable

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7
Q

– Can be changed without altering the overall process.

A

Independent

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8
Q

– Ensures compliance with policies or regulations.

A

Enforceable

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9
Q

Types of Business Rules:

A
  1. Constraint Rules
  2. Derivation Rules
  3. Trigger Rules
  4. Processing Rules
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10
Q

Define limitations on data or processes

A

Constraint Rules:

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11
Q

Derive new information based on existing data.

A

Derivation Rules:

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12
Q

Specify when an action should be taken.

A

Trigger Rules:

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13
Q

Define how data or transactions should be handled.

A

Processing Rules

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14
Q

“A customer cannot place an order without an email address.”

A

Constraint Rules

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15
Q

“If a customer spends over $500, they are categorized as a VIP.”

A

Derivation Rules

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16
Q

“If an employee’s absence exceeds 5 days, notify HR.”

A

Trigger Rules

17
Q

“Orders placed after 6 PM will be processed the next business day.”

A

Processing Rules

18
Q

Where Business Rules Are Used?

A

✅ 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)

19
Q

What are the decision models?

A
  1. Decision Trees
  2. Decision Tables
  3. Rule-Based Systems
  4. Machine Learning Models
    decisions.
20
Q

A hierarchical model that represents decisions as branches.

A

Decision Trees

21
Q

A tabular representation of rules and outcomes.

A

Decision Tables

22
Q

Uses IF-THEN logic to automate decisions.

A

Rule-Based Systems

23
Q

Uses data patterns to automate complex decisions.

A

Machine Learning Models