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The heterogeneity, increasing size and complexity of distributed systems requires new architectures, strategies, and tools for their technical management. In this paper we propose a policy based approach to distributed systems management. The use of different abstraction levels allows a stepwise refinement from an informal strategic level to a formalized operational level. On the lowest level, we use a formal language for separate definition of policies and events, that enables the computer to check the syntax of a given policy description and to translate policies into executable rules. To increase the capability for reasoning on a given set of policies, we extended the architecture by a graph model of the process semantics of operational policy and event specifications. The graph model is supported by a compiler mapping operational specifications into their semantic graphs, and performing analysis and manipulation functions on such graphs.