Definition of Reference Data
Information that is used to classify or categorize other data within a system.
Explanation of Reference Data
Reference data refers to a standardized set of information used to categorize, validate, and manage other data within an organization. This type of data provides context and consistency across various systems and processes, ensuring that different datasets can be accurately compared and integrated. Examples of reference data include country codes, currency codes, product classifications, and industry codes. Managing reference data involves creating and maintaining a centralized repository, ensuring data accuracy and consistency, and updating it as needed to reflect changes. Effective reference data management helps organizations improve data quality, streamline operations, and support data-driven decision-making. By leveraging reference data, businesses can enhance their ability to analyze information, maintain compliance with regulatory requirements, and achieve better overall performance.