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BRD(Business requirements document) contains the requirements or “ what” the system must do. Often, it will also state “why” the project has been initiated or the business rationale for the requirements. It is written from the sponsor’s point of view. It defines the goal of the business and measurable benefits of doing the project. It also states different kinds of risks.

Below are the few examples of business requirements:

  1. Reduce incorrectly processed order by 20% by the end of this year.
  2. Increase the market share of company by 15% by the end of next quarter.

FRD(Functional requirements document) discusses about “how” we are going to achieve business goals and objectives stated in BRD. It speaks of functions and functionalities of the system. what actions we need to take and what rules we need to follow to serve these business requirements are discussed in FRD.

Below are the few examples of Functional requirements:

  1. Allow sorting by account opening date.
  2. Company watermark must be present on all the tickets printed.

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