Policies and rules serve as boundaries and constraints for the organization and the operation of the organization. Policies and rules are external or internal factors that limit the options or actions available to the organization. They can be formal or informal, explicit or implicit, and can originate from various sources, such as laws, regulations, standards, contracts, agreements, policies, procedures, guidelines, or best practices. Policies and rules are one of the elements of the Business Analysis Core Concept Model™ (BACCM™), which describes the fundamental concepts that are important for business analysis. Policies and rules are also one of the inputs to the Define Business Need task, which is part of the Strategy Analysis knowledge area. Policies and rules help to define the problem or opportunity that the organization faces and the desired outcomes that the solution should achieve. References: Business Analysis Expert Certification, CCBA® | IIBA®, CERTIFICATION OF CAPABILITY IN BUSINESS ANALYSIS, [Business Analysis Core Concept Model™ (BACCM™) | IIBA®]