System and Method for Multi-Layered Monitoring and Control for Dynamic Situation Handling for Production Support

A system and method for selecting an optimal policy to be implemented in production support engagement. The system configures a knowledge base including plurality of policies, reference events, and reference scenarios. The plurality of policies is mapped with the plurality of reference scenarios and the plurality of reference events. The plurality of policies is defined in a plurality of layers in a manner that each policy corresponds to a particular layer of the plurality of layers. Relevant policies, out of the plurality of policies, may be selected based on an event received. Simulation may be performed on the relevant policies for identifying first candidate policy. The optimization may be performed on the relevant policies for identifying second candidate policy. The first and second candidate policy indicate the optimal policy to be implemented in the production support engagement.