Make sure you have completed the steps in Prerequisites for Using Password Policies. These steps prepare you to use all the features of Password Policies.
In iManager, click Password Management > Manage Password Policies.
Click New to create a new Password Policy.
Follow the steps in the wizard to create Advanced Password Rules, Universal Password Configuration Options, and Forgotten Password selections for the policy.
See the online help for information about each step, as well as the information in Managing Passwords by Using Password Policies and in Password Self-Service.