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 comprises: a first resource management host in communication with a client system via a distributed network architecture; at least one application executable by the first resource management host; a dynamic policy assignment system executing on the first resource management host; a plurality of 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 to receive application hosting services. The application hosting services include executing the application on behalf of the client system. The dynamic policy assignment system receives the request at the first resource management system, and based upon a task name associated with the application profile, selects at least one policy for an application instance related to the request. The dynamic policy assignment system further associates the policy to the application, and the host system executes the application on behalf of the client system. The invention also includes a method and a storage medium.