An event-handling system identifies multiple policies to be combined
together in a merged policy set. The system determines whether any
conflicts exist between the multiple policies. Any non-conflicting
policies are included in the merged policy set. The system resolves
conflicting policies by selecting a preferred policy and including the
preferred policy in the merged policy set. The preferred policy is
selected by arranging conflicting policy templates in order from global
policies to local policies and determining the intersection of the
conflicting policy templates. The preferred policy template is selected
based on the policy template closest to the local policies and within the
intersection of the conflicting policy templates.