According to one embodiment, a system comprises one or more processors coupled to a memory and executing logic. A policy life cycle component is configured to maintain a repository of security policies. The repository of security policies comprises policies governing access to a virtual host and to a plurality of virtual machines running on the virtual host. The policy life cycle component is also configured to issue a compound policy for an identified virtual operating system running on the virtual host. The compound policy provides a virtual host policy and access rules for each of the plurality of virtual machines running on the virtual host. A topology manager is configured to receive the compound policy from the policy life cycle component, assign the compound to an access control agent, and maintain a security policy topology. The security policy topology stores associations between access control agents and compound policies.