Method and apparatus for securely and dynamically modifying security policy configurations in a distributed system

One embodiment of the present invention provides a system for managing security policies in a distributed computing system. Security policies include, but are not limited to, a firewall policy, a policy for file access, a policy for application access, a policy for an encryption algorithm, a policy for audit trails, and a policy for activity logging. These security policies determine access rights to a computer application. The system operates by creating multiple security policies with individual security policies specifying a differing level of security for the distributed computing system. These security policies are then distributed to each computer in the distributed computing system. Next, a specific security policy is selected for use across the distributed computing system, and each computer in the distributed computing system is directed to use the specified security policy enforcing a selected security posture.