Interview Questions for Business Analysts and Systems Analysts


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INTERVIEW QUESTION:

What is the different between a business policy and a business rule?

Posted by Chris Adams

Article Rating // 26846 Views // 1 Additional Answers & Comments

Categories: Business Analysis, Systems Analysis, Domain Modeling, Enterprise Analysis (BABOK KA), Business Rules

ANSWER

Business Rules and Policies tend to be complicated for analysts to untangle because they are so closely related.  Policies are typically more general assertions or guidance about how an organization is intended to operate, while business rules describe the specific execution of the business policy. 

The BABOK describes a policy as “a non-actionable directive that supports a business goal', and a business rule as 'a specific, actionable, testable directive that is under the control of the business and supports a business policy'

The Business Rules Group goes further in their definition of business rules describing it as an atomic statement that defines or constrains some aspect of the business.  They categorize business rules as one of three sub-classifications; structural assertion, action assertion, or derivation.  The definitions of these get quite detailed and while knowing them, along with understanding things like fact models, may help elaborate one’s understanding of a business rule, at a summary level business rules are best understood by a higher level definition (like the IIBA’s) and a few examples.

Additionally, policies, being more general, typically change less often than business rules which are specific implementations of policies.

To restate, a policy is:

  • A non-actionable directive
  • Often requires employees to translate into specific statements of what to do (business rules)
  • Supports a business goal
  • Supported by one or more business rules


A business rules is:

  • Actionable
  • Specific
  • Testable
  • Supports a policy


Examples of policies for a car rental company:

  • Maintenance must be performed in a manner which maximizes the life and value of the car
  • Renters must have valid insurance


Example of business rules that may support these policies:

  • All vehicles are required to have a 58 point inspection after every 3 months of use before re-renting.
  • A car which has accumulated more than 3500 miles must have its oil changed before re-renting.
  • Tires with less than 1/16th inch of tread must be replaced.
  • Renters in the state of Texas must have insurance covering $100,000 of liability or more.
  • Renters in the state of Arizona must have insurance covering $50,000 of liability or more.

Notice that each of the business rules are written as a level which is actionable, specific, and testable.


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Chris Adams
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ADDITIONAL ANSWERS / COMMENTS

KlaasCo posted on Saturday, September 21, 2013 7:14 PM
This is a great summary - thank you very much. I offer a small extension; with regards to 'System Rules'. System Rules are simply business rules that have been translated into machine code. These may appear to replicate the Business rules (or may sometimes vary ever-so-sightly depending on the delivery model / vehicle of the required behaviors).
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Do your homework prior to the business analysis interview!

Having an idea of the type of questions you might be asked during a business analyst interview will not only give you confidence but it will also help you to formulate your thoughts and to be better prepared to answer the interview questions you might get during the interview for a business analyst position.  Of course, just memorizing a list of business analyst interview questions will not make you a great business analyst but it might just help you get that next job.





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