Using fact-based modelling to develop a common language a use case

Abstract

In today’s business environment, the challenges an organization has to face have increased in amount and complexity. Not only competition has become tougher, organizations, and in particular financial institutions have to fulfil an increasing amount of regulations imposed by external organizations. To fulfil these legal obligations, a common understanding is required to remove ambiguities within the organizations and to ensure correct reporting. A common understanding is achieved through the use of a common language in which each relevant term is foreseen of a single Definition that contains no ambiguity such that the risk of misinterpretation is reduced drastically and the time spent on research in case of a new reporting query coming from a (change of) legislation decreases. In this paper, it is explained how fact-based modelling is used to develop the common understanding, by using the fact types as the basic building blocks for the Definitions.