Policies represent the user role which could be categorized as: Application Domain Policy, User Policy, Machine Policy and Enterprise Policy. The purpose of each is defined below.

Enterprise Policy – This policy is specified by the enterprise administrator. This would target to all managed code in an enterprise.

Machine Policy - This policy is specified by the enterprise administrator. This would target to all managed code in the local computer.

User Policy - This policy is specified by the enterprise administrator or the user of the machine.  This would target to all managed code associated with the current user.

Application Domain Policy - The policy is specified by the enterprise administrator. This would target all managed code in an application.

A policy is a configuration file which holds details on what the assembly is permitted to do depending upon the evidence collected. A common overlap of permission sets between various policies is termed as an Intersection. These policies are defined in a hierarchical structure and before applying permission all of the policies in the hierarchic should accept it.