A policy level consists of a set of code groups organized into a single rooted tree, a set of named permission sets that are referenced by the code groups to specify permissions to be granted to code belonging to the code group and a list of fully-trusted assemblies.

1.    Enterprise: security policy for all managed code in an enterprise. This is the topmost hierarchy for applying policy level settings.

2.    Machine: security policies for all managed code run on the computer

3.    User: Security policy for all managed code run by the user. For the current user the security settings get applied.

4.    Application domain: security policy for all managed code in an application

The figure below shows the configuration wizard for the .NET Framework 2.0. The policy level Enterprise security policy has Code Groups, Permission Sets and Policy Assemblies within it.

Figure 2