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

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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