A research project for developing and evaluating dynamic policy models, adaptive composition approaches, and risk management strategies. The main thrust of the project is the development of proof theoretic reasoning and analysis algorithms to enable system integrators and end users to leverage diverse and heterogeneous Web services through local policy specifications. A primary focus of the work is web services workflow-related issues. It has become increasingly difficult to build services-based systems that can effectively achieve distributed services composition and coordination in increasingly dynamic, uncertain and error-prone open system environments. The research will develop one model which can provide a means for specifying the interactive behavior of the underlying services to align their capabilities according to the requirements of their owners and consumers. The policy enforced Web services composition can be an important conduit for information and event sharing in smart environments.