An exemplary embodiment of the invention relates to a method, system, and storage medium for providing context-based dynamic policy assignment in a distributed processing environment. The system includes a first resource management host in communication with a client system, an application executable by the first resource management host, a dynamic policy assignment system executing on the first resource management host, policies stored on the first resource management host and an application profile associated with the client system. The application profile is received by the first resource management host. Application hosting services include executing the application on behalf of the client system. The dynamic policy assignment system receives the request, and based upon a task name associated with the application profile, selects at least one policy for an application instance. The dynamic policy assignment system further associates the policy to the application, and the host system executes the application.