Table of Contents | ||
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Overview
What is the Finance Domain?
The Finance domain represents the economic resources, financial flows, structures, and instruments that support an organization's operations and strategic objectives. This domain provides a structured approach for modeling financial assets, budgets, investments, revenue streams, and cost structures, enabling finance-centric analysis that drives strategic planning, resource allocation, and performance optimization.
The domain extends the Orthogramic Metamodel by providing deeper insights into financial operations, capital structures, and investment decisions, enabling organizations to align their capabilities, value streams, and strategies with financial realities and objectives.
Purpose and Value
The Finance Domain enables organizations to:
Analyze financial structures and resource allocation that influence strategy formulation
Map investment decisions to strategic priorities and capability development
Monitor financial performance metrics that drive business decisions
Support data-driven decision making about capital allocation and funding priorities
Drive financial sustainability through improved visibility into cost and revenue structures
Measure and improve financial performance and efficiency
Provide a structured foundation for financial governance and compliance
Core Concepts
Financial Resource
A distinct financial asset, liability, or capital element that the organization manages, allocates, or optimizes. Financial resources provide a way to categorize different types of financial instruments and structures with unique characteristics and management approaches.
Budget
A financial planning and control mechanism that allocates resources to specific activities, initiatives, or organizational units. Budget analysis enables strategic prioritization and resource governance.
Investment
An allocation of financial resources expected to generate future value or returns. Investment mapping provides insight into strategic priorities, risk tolerance, and expected outcomes.
Revenue Stream
An identified source of income generation tied to products, services, or other value-creating activities. Revenue stream analysis provides context for understanding business model sustainability and growth.
Cost Structure
A structured evaluation of expense categories, drivers, and relationships. Cost structure analysis provides a foundation for understanding operational efficiency and financial optimization.
Domain Structure
Domain Attributes
Basic identification: title, description, financeDefinition
Organizational alignment: orgUnitTitle, orgUnitRoles
Financial characteristics: totalValue, accountingTreatment, fiscalPeriod
Management factors: governanceModel, complianceRequirements, approvalAuthority
External factors: marketInfluences, regulatoryFactors, economicConditions
Strategic implications: strategicPriority, riskProfile, performanceMetrics
Domain Elements
Financial Resource Element
Provides a detailed assessment of a specific financial asset, liability, or capital element:
Resource identification and categorization
Valuation and accounting treatment
Risk characteristics and management approaches
Performance metrics and benchmarks
Strategic alignment and purpose
Budget Element
Maps the allocation and management of financial resources:
Budget type and timeframe
Allocation methodology and priorities
Approval and governance processes
Variance tracking and management
Performance against targets
Investment Element
Evaluates the financial commitments made to generate future value:
Investment type and purpose
Expected returns and timeframes
Risk assessment and mitigation strategies
Performance monitoring approaches
Strategic alignment and priorities
Revenue Stream Element
Analyzes sources of financial inflow:
Revenue source and characteristics
Pricing models and strategies
Growth trends and forecasts
Market dynamics and competitive factors
Product/service relationships
Cost Structure Element
Evaluates expense patterns and relationships:
Cost categories and hierarchies
Fixed vs. variable components
Cost drivers and allocation methods
Efficiency metrics and benchmarks
Optimization strategies
Conclusion
The Finance Domain extends the Orthogramic Metamodel with a robust framework for modeling and managing financial aspects of business architecture. By providing structured schemas for financial resources, budgets, investments, revenue streams, and cost structures, it enables organizations to systematically align their capabilities, value streams, and strategies with financial objectives and constraints.
The integration with the Strategic Response Model ensures that financial insights drive strategic decision-making and organizational change. This domain complements other domains by focusing on the financial dimensions that enable and constrain organizational activities, providing critical context for strategic planning and operational execution.
Organizations can use this domain to develop a more comprehensive understanding of their financial landscape, identify resource optimization opportunities, and ensure that strategic initiatives are financially viable and sustainable.
Example Implementation
Example: Corporate Investment Portfolio Analysis
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Table of Contents | ||
---|---|---|
|
Overview
What is the Finance Domain?
The Finance domain represents the economic resources, financial flows, structures, and instruments that support an organization's operations and strategic objectives. This domain provides a structured approach for modeling financial assets, budgets, investments, revenue streams, and cost structures, enabling finance-centric analysis that drives strategic planning, resource allocation, and performance optimization.
The domain extends the Orthogramic Metamodel by providing deeper insights into financial operations, capital structures, and investment decisions, enabling organizations to align their capabilities, value streams, and strategies with financial realities and objectives.
Purpose and Value
The Finance Domain enables organizations to:
Analyze financial structures and resource allocation that influence strategy formulation
Map investment decisions to strategic priorities and capability development
Monitor financial performance metrics that drive business decisions
Support data-driven decision making about capital allocation and funding priorities
Drive financial sustainability through improved visibility into cost and revenue structures
Measure and improve financial performance and efficiency
Provide a structured foundation for financial governance and compliance
Core Concepts
Financial Resource
A distinct financial asset, liability, or capital element that the organization manages, allocates, or optimizes. Financial resources provide a way to categorize different types of financial instruments and structures with unique characteristics and management approaches.
Budget
A financial planning and control mechanism that allocates resources to specific activities, initiatives, or organizational units. Budget analysis enables strategic prioritization and resource governance.
Investment
An allocation of financial resources expected to generate future value or returns. Investment mapping provides insight into strategic priorities, risk tolerance, and expected outcomes.
Revenue Stream
An identified source of income generation tied to products, services, or other value-creating activities. Revenue stream analysis provides context for understanding business model sustainability and growth.
Cost Structure
A structured evaluation of expense categories, drivers, and relationships. Cost structure analysis provides a foundation for understanding operational efficiency and financial optimization.
Domain Structure
Domain Attributes
Basic identification: title, description, financeDefinition
Organizational alignment: orgUnitTitle, orgUnitRoles
Financial characteristics: totalValue, accountingTreatment, fiscalPeriod
Management factors: governanceModel, complianceRequirements, approvalAuthority
External factors: marketInfluences, regulatoryFactors, economicConditions
Strategic implications: strategicPriority, riskProfile, performanceMetrics
Domain Elements
Financial Resource Element
Provides a detailed assessment of a specific financial asset, liability, or capital element:
Resource identification and categorization
Valuation and accounting treatment
Risk characteristics and management approaches
Performance metrics and benchmarks
Strategic alignment and purpose
Budget Element
Maps the allocation and management of financial resources:
Budget type and timeframe
Allocation methodology and priorities
Approval and governance processes
Variance tracking and management
Performance against targets
Investment Element
Evaluates the financial commitments made to generate future value:
Investment type and purpose
Expected returns and timeframes
Risk assessment and mitigation strategies
Performance monitoring approaches
Strategic alignment and priorities
Revenue Stream Element
Analyzes sources of financial inflow:
Revenue source and characteristics
Pricing models and strategies
Growth trends and forecasts
Market dynamics and competitive factors
Product/service relationships
Cost Structure Element
Evaluates expense patterns and relationships:
Cost categories and hierarchies
Fixed vs. variable components
Cost drivers and allocation methods
Efficiency metrics and benchmarks
Optimization strategies
Conclusion
The Finance Domain extends the Orthogramic Metamodel with a robust framework for modeling and managing financial aspects of business architecture. By providing structured schemas for financial resources, budgets, investments, revenue streams, and cost structures, it enables organizations to systematically align their capabilities, value streams, and strategies with financial objectives and constraints.
The integration with the Strategic Response Model ensures that financial insights drive strategic decision-making and organizational change. This domain complements other domains by focusing on the financial dimensions that enable and constrain organizational activities, providing critical context for strategic planning and operational execution.
Organizations can use this domain to develop a more comprehensive understanding of their financial landscape, identify resource optimization opportunities, and ensure that strategic initiatives are financially viable and sustainable.
Example Implementation
Example: Corporate Investment Portfolio Analysis
Code Block |
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{ "financeID": "FIN-INV-001", "title": "Strategic Investment Portfolio", "description": "The corporate strategic investment portfolio supporting long-term growth initiatives and capability development across the enterprise.", "financeDefinition": "Strategic financial resources allocated to initiatives that drive future revenue growth, market expansion, and competitive differentiation.", "orgUnitTitle": "Corporate Finance Division", "orgUnitRoles": ["Chief Financial Officer", "Investment Director", "Financial Analyst"], "totalValue": { "currentValue": "$275 million", "currency": "USD", "fiscalYear": "2025", "projectedValue": "$350 million", "projectionYear": "2027", "valuationMethod": "Discounted cash flow analysis with strategic value adjustment" }, "accountingTreatment": "capital", "fiscalPeriod": { "startDate": "2025-01-01", "endDate": "2025-12-31", "periodType": "annual" }, "governanceModel": "Investment Review Board with quarterly funding gate reviews and annual strategic portfolio realignment", "complianceRequirements": [ "SOX Section 404 controls for investment authorization", "Capital allocation policy compliance", "Board reporting requirements for investments over $10M" ], "regulatoryFactorsapprovalAuthority": [ "CapitalInvestment adequacyCommittee requirements(<$5M)", "SECExecutive reporting obligations for material investments", "Environmental compliance considerations for infrastructure investments" Committee ($5M-$25M)", "Board of Directors (>$25M)" ], "economicConditionsmarketInfluences": [ "Moderate economic growth forecast (2.7%)Rising interest rates affecting investment hurdle rates", "IncreasingIndustry consolidation wagecreating inflationacquisition pressuresopportunities", "SupplyEmerging chaintechnology constraintsdisruption affectingrequiring capitaldefensive project timelinesinvestments" ], "strategicPriorityregulatoryFactors": {[ "priorityLevel": "highCapital adequacy requirements", "description": "Investment portfolio directly enables our three strategic pillars of digital transformation, market expansion, and operational excellenceSEC reporting obligations for material investments", "Environmental compliance considerations for infrastructure investments" }], "riskProfileeconomicConditions": {[ "riskLevel": "moderateModerate economic growth forecast (2.7%)", "description": "Balanced portfolio with mix of high-risk/high-return initiatives and foundational lower-risk investments", Increasing wage inflation pressures", "Supply chain constraints affecting capital project timelines" ], "mitigationStrategiesstrategicPriority": [{ "Portfolio diversification across technology, market, and product investments", "Stage-gated funding model with defined exit criteria", "Quarterly risk reassessment with portfolio rebalancing" ] "priorityLevel": "high", "description": "Investment portfolio directly enables our three strategic pillars of digital transformation, market expansion, and operational excellence" }, "performanceIndicatorsriskProfile": [ { "metricNameriskLevel": "Portfolio Return on Investmentmoderate", "metricDescriptiondescription": "Blended financial return across all activeBalanced portfolio with mix of high-risk/high-return initiatives and foundational lower-risk investments", "currentValuemitigationStrategies": "16.8% [ "Portfolio diversification across technology, market, and product investments", "targetValue": "18.5%Stage-gated funding model with defined exit criteria", "unit": "Percentage" Quarterly risk reassessment with portfolio rebalancing" ] }, "performanceIndicators": [ { "metricName": "StrategicPortfolio Return Alignmenton ScoreInvestment", "metricDescription": "WeightedBlended measurefinancial ofreturn portfolioacross alignmentall withactive strategic objectivesinvestments", "currentValue": "416.28%", "targetValue": "418.55%", "unit": "Score (1-5)Percentage" }, { "metricName": "InvestmentStrategic ExecutionAlignment IndexScore", "metricDescription": "CompositeWeighted metricmeasure of on-time, on-budget delivery of investment outcomesportfolio alignment with strategic objectives", "currentValue": "78%4.2", "targetValue": "85%4.5", "unit": "PercentageScore (1-5)" } ], "dependencies": [ { "dependencyTypemetricName": "EnablerInvestment Execution Index", "domainTypemetricDescription": "StrategyComposite metric of on-time, on-budget delivery of investment outcomes", "entityIDcurrentValue": "STRAT-2025-0178%", "descriptiontargetValue": "Corporate Growth Strategy 2025-2030"85%", "unit": "Percentage" } ], "dependencies": [ { "dependencyType": "CriticalEnabler", "domainType": "CapabilityStrategy", "entityID": "CAPSTRAT-FINPLAN2025-00101", "description": "FinancialCorporate PlanningGrowth and Analysis capabilityStrategy 2025-2030" }, ], { "relatedFinancialElements": [ {"dependencyType": "Critical", "elementIDdomainType": "FIN-BUD-002Capability", "relationshipTypeentityID": "allocates toCAP-FINPLAN-001", "description": "Financial Planning and Analysis capability" } ], "relatedFinancialElements": [ { "elementID": "FIN-BUD-002", "relationshipType": "allocates to", "relationshipStrength": 4 }, { "elementID": "FIN-FUND-003", "relationshipType": "funds", "relationshipStrength": 5 } ], "improvementOpportunities": [ "Enhanced predictive analytics for investment outcome forecasting", "Integration of ESG metrics into investment evaluation criteria", "Streamlined investment approval process for high-potential initiatives" ] } |
...
Cross-Domain Relationship Mappings
Info |
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Add to JSON Schema Convert these Cross domain JSON schema snippets to tables |
Finance-Strategy Relationship Schema
Code Block |
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{
"$schema": "http://json-schema.org/draft-07/schema#",
"title": "Finance-Strategy Relationship Schema",
"description": "Schema for relationships between Finance domain and Strategy domain",
"type": "object",
"required": ["relationshipID", "financeID", "title", "relationshipType"],
"properties": {
"relationshipID": {
"type": "string",
"description": "Unique identifier for this relationship"
},
"financeID": {
"type": "string",
"description": "ID of the finance element"
},
"title": {
"type": "string",
"description": "Name of the strategy"
},
"relationshipType": {
"type": "string",
"description": "Nature of the financial influence on strategy",
"enum": ["investment-enabler", "resource-constraint", "funding-source", "performance-driver", "risk-management", "value-creation", "other"]
},
"relationshipStrength": {
"type": "integer",
"description": "Strength of influence (1-5)",
"minimum": 1,
"maximum": 5
},
"financialFactors": {
"type": "array",
"description": "Financial factors influencing this strategy",
"items": {
"type": "string"
}
},
"resourceAllocation": {
"type": "array",
"description": "How financial resources are allocated to support strategy",
"items": {
"type": "object",
"properties": {
"allocationCategory": {
"type": "string",
"description": "Category of allocation"
},
"amount": {
"type": "number",
"description": "Amount allocated"
},
"percentage": {
"type": "number",
"description": "Percentage of total resources"
},
"rationale": {
"type": "string",
"description": "Reason for allocation level"
}
}
}
},
"strategicObjectives": {
"type": "array",
"description": "Strategic objectives supported by financial elements",
"items": {
"type": "object",
"properties": {
"objectiveID": {
"type": "string",
"description": "ID of strategic objective"
},
"financialContribution": {
"type": "string",
"description": "How finance supports this objective"
},
"importanceLevel": {
"type": "string",
"description": "Importance of financial element to objective",
"enum": ["minor", "moderate", "significant", "critical"]
}
}
}
},
"financialConstraints": {
"type": "array",
"description": "Financial limitations affecting strategy",
"items": {
"type": "object",
"properties": {
"constraintDescription": {
"type": "string",
"description": "Description of constraint"
},
"impact": {
"type": "string",
"description": "How constraint affects strategy"
},
"mitigationApproach": {
"type": "string",
"description": "Approach to addressing constraint"
}
}
}
},
"financialRisks": {
"type": "array",
"description": "Risks related to financial factors",
"items": {
"type": "object",
"properties": {
"riskDescription": {
"type": "string",
"description": "Description of the risk"
}, |
Code Block |
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"likelihood": {
"type": "string",
"description": "Probability of occurrence",
"enum": ["very low", "low", "moderate", "high", "very high"]
},
"impact": {
"type": "string",
"description": "Potential impact if realized",
"enum": ["minimal", "moderate", "significant", "severe", "critical"]
},
"mitigationApproach": {
"type": "string",
"description": "Approach to mitigating this risk"
}
}
}
},
"implementationConsiderations": {
"type": "string",
"description": "Financial considerations for strategy implementation"
},
"performanceMetrics": {
"type": "array",
"description": "Financial metrics for measuring strategic success",
"items": {
"type": "object",
"properties": {
"metricName": {
"type": "string",
"description": "Name of the metric"
},
"currentValue": {
"type": "string",
"description": "Current value"
},
"targetValue": {
"type": "string",
"description": "Target value"
},
"timeframe": {
"type": "string",
"description": "Timeframe for achievement"
}
}
}
}
}
}
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Finance-Capability Relationship Schema
Code Block |
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{
"$schema": "http://json-schema.org/draft-07/schema#",
"title": "Finance-Capability Relationship Schema",
"description": "Schema for relationships between Finance domain and Capability domain",
"type": "object",
"required": ["relationshipID", "financeID", "title", "relationshipType"],
"properties": {
"relationshipID": {
"type": "string",
"description": "Unique identifier for this relationship"
},
"financeID": {
"type": "string",
"description": "ID of the finance element"
},
"title": {
"type": "string",
"description": "Name of the capability"
},
"relationshipType": {
"type": "string",
"description": "Nature of the relationship",
"enum": ["funding-source", "enabling-investment", "cost-driver", "value-generator", "efficiency-focus", "performance-measure", "other"]
},
"relationshipStrength": {
"type": "integer",
"description": "Importance of this financial element to capability (1-5)",
"minimum": 1,
"maximum": 5
},
"financialValue": {
"type": "string",
"description": "How this financial element relates to capability value"
},
"investmentProfile": {
"type": "object",
"description": "Financial investments in this capability",
"properties": {
"currentInvestment": {
"type": "number",
"description": "Current investment amount"
},
"plannedInvestment": {
"type": "number",
"description": "Planned future investment"
},
"returnMetrics": {
"type": "array",
"description": "Metrics measuring investment return",
"items": {
"type": "object",
"properties": {
"metricName": {
"type": "string",
"description": "Name of return metric"
},
"currentValue": {
"type": "string",
"description": "Current measurement"
},
"targetValue": {
"type": "string",
"description": "Target value"
}
}
}
},
"investmentRationale": {
"type": "string",
"description": "Reasoning behind investment levels"
}
}
},
"costAnalysis": {
"type": "object",
"description": "Cost implications of the capability",
"properties": {
"totalCost": {
"type": "number",
"description": "Total cost of the capability"
},
"costBreakdown": {
"type": "array",
"description": "Major cost components",
"items": {
"type": "object",
"properties": {
"componentName": {
"type": "string",
"description": "Name of cost component"
},
"amount": {
"type": "number",
"description": "Component cost"
},
"percentage": {
"type": "number",
"description": "Percentage of total cost"
}
}
}
},
"efficiencyOpportunities": {
"type": "array",
"description": "Areas for cost efficiency improvement",
"items": {
"type": "string"
}
}
}
},
"financialPerformanceMetrics": {
"type": "array",
"description": "Financial metrics for this capability",
"items": {
"type": "object",
"properties": {
"metricName": {
"type": "string",
"description": "Name of the metric"
},
"currentValue": {
"type": "string",
"description": "Current performance"
},
"targetValue": {
"type": "string",
"description": "Target performance"
},
"benchmarkValue": {
"type": "string",
"description": "Industry benchmark"
}
}
}
},
"budgetAllocation": {
"type": "object",
"description": "Budget assigned to capability",
"properties": {
"currentAllocation": {
"type": "number",
"description": "Current budget amount"
},
"allocationTrend": {
"type": "string",
"description": "Direction of budget change",
"enum": ["decreasing", "stable", "increasing"]
},
"allocationProcess": {
"type": "string",
"description": "How allocation is determined"
},
"lastReviewDate": {
"type": "string",
"format": "date",
"description": "Date of last budget review"
}
}
},
"valueCreationAnalysis": {
"type": "object",
"description": "How capability creates financial value",
"properties": {
"valueType": {
"type": "string",
"description": "Type of value created",
"enum": ["revenue-generation", "cost-reduction", "risk-mitigation", "asset-optimization", "multiple"]
},
"valueAmount": {
"type": "number",
"description": "Estimated value created"
},
"valuationMethod": {
"type": "string",
"description": "Method used to determine value"
},
"valueSustainability": {
"type": "string",
"description": "Long-term outlook for value creation"
}
}
}
}
}
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Finance-Initiative Relationship Schema
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From Domain | From Object | Relationship Type | To Domain | To Object | Description |
---|---|---|---|---|---|
Finance | Cost Element | funds | Product | Product | Cost elements fund product development. |
Finance | Cost Element | supports | Value Stream | Value Stream | Cost elements support value streams. |
Finance | Cost Element | allocates_to | Organization | Organisation Unit | Cost elements are allocated to organisational units. |
Finance | Cost Element | drives | Technology | Technology Component | Cost elements drive technology investment. |
Finance | Cost Element | constrains | Strategy | Strategy Element | Cost elements constrain strategic execution. |
Finance | Cost Element | measured_by | Performance | Performance Indicator | Cost elements are measured by performance indicators. |
Finance | Cost Element | governed_by | Policy | Policy | Cost elements are governed by financial policies. |
Finance | Cost Element | impacts | Risk | Risk | Cost elements impact organisational risks. |
Finance | Revenue Stream | derives_from | Product | Product | Revenue streams derive from product offerings. |
Finance | Revenue Stream | derives_from | Market | Customer Segment | Revenue streams derive from customer segments. |
Finance | Revenue Stream | enables | Strategy | Strategic Objective | Revenue streams enable strategic objectives. |
Finance | Revenue Stream | supports | Initiative | Initiative | Revenue streams support initiatives. |
Finance | Revenue Stream | measured_by | Performance | Performance Indicator | Revenue streams are measured by financial indicators. |
Finance | Revenue Stream | influences | Strategy | Strategy Element | Revenue streams influence strategic direction. |
Finance | Revenue Stream | depends_on | Market | Channel | Revenue streams depend on market channels. |
Finance | Revenue Stream | aligned_with | Product | Product Roadmap | Revenue streams align with product roadmaps. |
Finance | Budget | funds | Initiative | Initiative | Budgets fund initiatives. |
Finance | Budget | allocates_to | Organization | Organisation Unit | Budgets allocate resources across units. |
Finance | Budget | supports | Product | Product Development | Budgets support product development. |
Finance | Budget | enables | Technology | Technology Implementation | Budgets enable technology implementation. |
Finance | Budget | constrains | Initiative | Initiative | Budgets constrain initiatives. |
Finance | Budget | aligned_with | Strategy | Strategy Element | Budgets align with strategies. |
Finance | Budget | informs | Strategy | Strategic Decision | Budgets inform strategic decisions. |
Finance | Budget | governed_by | Policy | Policy | Budgets are governed by financial policies. |
Finance | Budget | impacts | Risk | Risk | Budgets impact risk management. |
Finance | Financial KPI | measures | Performance | Performance Indicator | Financial KPIs measure performance indicators. |
Finance | Financial KPI | evaluates | Product | Product Success | Financial KPIs evaluate product success. |
Finance | Financial KPI | tracks | Organization | Organisation Health | Financial KPIs track organisational health. |
Finance | Financial KPI | informs | Strategy | Strategic Decision | Financial KPIs inform strategic decision-making. |
Finance | Financial KPI | aligned_with | Performance | Performance Objective | Financial KPIs align with performance objectives. |
Finance | Financial KPI | impacts | Strategy | Strategy Element | Financial KPIs impact strategy development. |
Finance | Financial KPI | relates_to | Risk | Risk | Financial KPIs relate to risk assessment. |
Relationship types description
Your original list of relationship types was mostly fine.
Here is a rationalised subset aligned with the relationships that remain:
funds: Financial support or funding for other elements.
supports: Supportive relationship through financial or resource contribution.
impacts: Influence or affect other domain elements through finance.
drives: Propel or stimulate activity in another domain.
enables: Make possible through financial or resource backing.
allocates_to: Assign financial resources to organisational units or initiatives.
measured_by: Assessment through metrics or indicators.
influences: Affect direction or outcomes indirectly.
constrains: Limit options or actions due to financial considerations.
aligned_with: Direct alignment with goals, strategies, or roadmaps.
governed_by: Subject to governance rules such as policies.
informs: Provide input or guidance for decisions.
derives_from: Originate as a result of another element.
contributes_to: Actively help achieve a goal or outcome.
relates_to: General association or connection.
tracks: Monitor ongoing progress or status.
Finance Domain Schema Properties
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