Business policy can be defined as the guidelines and procedures by which an organization conducts its business. Organizations depend on their information systems to implement their business policy. It is important that any implementation of business policy allows faster application development and better quality management and also provides a balance between flexibility and centralized control. This paper views business rules as atomic units of business policy that can be used to define or constrain different aspects of the business. It then argues that business rules provide an excellent representation for business policy. Finally, it presents KARMA, (Knowledge Acquisition and Rule Management Assistant) a system that can be used to specify, verify, validate and implement business rules. KARMA was developed and deployed at Fannie Mae.