A policy management system includes a policy management device that is configured to manage a policy input and/or a template and/or a functional model, a policy enforced device that is directly or indirectly connected to the policy management device via a network and that is configured such that at least a part of the functional model managed by the policy management device reflects the functional features/behaviors of the policy enforced device, a policy enforcement device that is configured to execute policy enforcement on the policy enforced device, and a policy decision device that is configured to receive machine-enforceable rule and/or configuration from the policy management device. The policy enforcement device, when a policy relevant event occurs, instructs the policy decision device to determine the result of the condition of the transmitted machine-enforceable rule and/or configuration for implementing the policy input for the policy enforced device, thereby modifying an operation of the policy enforced device or the policy enforcement device to execute the action.