Context models illustrate the operational context of a system and its interactions with the surrounding environment, often referred to as enterprise architecture or conceptual models. They define the boundaries of the system and include diagrams like the system context diagram, which highlight entities that interact with the system, such as in the case of an automated-teller machine (ATM) system. While context models showcase the presence of other systems in the environment, they do not detail the relationships between these systems and the specified system, necessitating the use of additional models, like business process models.