diff --git a/.github/workflows/api-security.yml b/.github/workflows/api-security.yml
index 9323df97c3..7b8dc72cb1 100644
--- a/.github/workflows/api-security.yml
+++ b/.github/workflows/api-security.yml
@@ -60,6 +60,7 @@ jobs:
           files: |
             api/**
             .github/workflows/api-security.yml
+            .safety-policy.yml
           files_ignore: |
             api/docs/**
             api/README.md
@@ -80,10 +81,8 @@ jobs:
 
       - name: Safety
         if: steps.check-changes.outputs.any_changed == 'true'
-        run: poetry run safety check --ignore 79023,79027,86217,71600
-        # TODO: 79023 & 79027 knack ReDoS until `azure-cli-core` (via `cartography`) allows `knack` >=0.13.0
-        # TODO: 86217 because `alibabacloud-tea-openapi == 0.4.3` don't let us upgrade `cryptography >= 46.0.0`
-        # TODO: 71600 CVE-2024-1135 false positive - fixed in gunicorn 22.0.0, project uses 23.0.0
+        # Accepted CVEs, severity threshold, and ignore expirations live in ../.safety-policy.yml
+        run: poetry run safety check --policy-file ../.safety-policy.yml
 
       - name: Vulture
         if: steps.check-changes.outputs.any_changed == 'true'
diff --git a/.github/workflows/sdk-security.yml b/.github/workflows/sdk-security.yml
index c13061ff1b..ceb6b1db1c 100644
--- a/.github/workflows/sdk-security.yml
+++ b/.github/workflows/sdk-security.yml
@@ -83,7 +83,8 @@ jobs:
 
       - name: Security scan with Safety
         if: steps.check-changes.outputs.any_changed == 'true'
-        run: poetry run safety check -r pyproject.toml
+        # Accepted CVEs, severity threshold, and ignore expirations live in .safety-policy.yml
+        run: poetry run safety check -r pyproject.toml --policy-file .safety-policy.yml
 
       - name: Dead code detection with Vulture
         if: steps.check-changes.outputs.any_changed == 'true'
diff --git a/.pre-commit-config.yaml b/.pre-commit-config.yaml
index 9d2503af60..b980e3a6c2 100644
--- a/.pre-commit-config.yaml
+++ b/.pre-commit-config.yaml
@@ -152,17 +152,19 @@ repos:
       - id: safety
         name: safety
         description: "Safety is a tool that checks your installed dependencies for known security vulnerabilities"
-        # TODO: Botocore needs urllib3 1.X so we need to ignore these vulnerabilities 77744,77745. Remove this once we upgrade to urllib3 2.X
-        # TODO: 79023 & 79027 knack ReDoS until `azure-cli-core` (via `cartography`) allows `knack` >=0.13.0
-        # TODO: 86217 because `alibabacloud-tea-openapi == 0.4.3` don't let us upgrade `cryptography >= 46.0.0`
-        # TODO: 71600 CVE-2024-1135 false positive - fixed in gunicorn 22.0.0, project uses 23.0.0
-        entry: safety check --ignore 70612,66963,74429,76352,76353,77744,77745,79023,79027,86217,71600
+        # Accepted CVEs, severity threshold, and ignore expirations live in .safety-policy.yml
+        entry: safety check --policy-file .safety-policy.yml
         language: system
         pass_filenames: false
         files:
           {
             glob:
-              ["**/pyproject.toml", "**/poetry.lock", "**/requirements*.txt"],
+              [
+                "**/pyproject.toml",
+                "**/poetry.lock",
+                "**/requirements*.txt",
+                ".safety-policy.yml",
+              ],
           }
 
       - id: vulture
diff --git a/.safety-policy.yml b/.safety-policy.yml
new file mode 100644
index 0000000000..fec97e2fb9
--- /dev/null
+++ b/.safety-policy.yml
@@ -0,0 +1,58 @@
+# Safety policy for `safety check` (Safety CLI 3.x, v2 schema).
+# Applied in: .pre-commit-config.yaml, .github/workflows/api-security.yml,
+# .github/workflows/sdk-security.yml via `--policy-file`.
+#
+# Validate: poetry run safety validate policy_file --path .safety-policy.yml
+
+security:
+  # Scan unpinned requirements too. Prowler pins via poetry.lock, so this is
+  # defensive against accidental unpinned entries.
+  ignore-unpinned-requirements: False
+
+  # CVSS severity filter. 7 = report only HIGH (7.0–8.9) and CRITICAL (9.0–10.0).
+  # Reference: 9=CRITICAL only, 7=CRITICAL+HIGH, 4=CRITICAL+HIGH+MEDIUM.
+  ignore-cvss-severity-below: 7
+
+  # Unknown severity is unrated, not safe. Keep False so unrated CVEs still fail
+  # the build and get a human eye. Flip to True only if noise is unmanageable.
+  ignore-cvss-unknown-severity: False
+
+  # Fail the build when a non-ignored vulnerability is found.
+  continue-on-vulnerability-error: False
+
+  # Explicit accepted vulnerabilities. Each entry MUST have a reason and an
+  # expiry. Expired entries fail the scan, forcing re-audit.
+  ignore-vulnerabilities:
+    77744:
+      reason: "Botocore requires urllib3 1.X. Remove once upgraded to urllib3 2.X."
+      expires: '2026-10-22'
+    77745:
+      reason: "Botocore requires urllib3 1.X. Remove once upgraded to urllib3 2.X."
+      expires: '2026-10-22'
+    79023:
+      reason: "knack ReDoS; blocked until azure-cli-core (via cartography) allows knack >=0.13.0."
+      expires: '2026-10-22'
+    79027:
+      reason: "knack ReDoS; blocked until azure-cli-core (via cartography) allows knack >=0.13.0."
+      expires: '2026-10-22'
+    86217:
+      reason: "alibabacloud-tea-openapi==0.4.3 blocks upgrade to cryptography >=46.0.0."
+      expires: '2026-10-22'
+    71600:
+      reason: "CVE-2024-1135 false positive. Fixed in gunicorn 22.0.0; project uses 23.0.0."
+      expires: '2026-10-22'
+    70612:
+      reason: "TBD - audit required. Reason not documented in prior --ignore list."
+      expires: '2026-07-22'
+    66963:
+      reason: "TBD - audit required. Reason not documented in prior --ignore list."
+      expires: '2026-07-22'
+    74429:
+      reason: "TBD - audit required. Reason not documented in prior --ignore list."
+      expires: '2026-07-22'
+    76352:
+      reason: "TBD - audit required. Reason not documented in prior --ignore list."
+      expires: '2026-07-22'
+    76353:
+      reason: "TBD - audit required. Reason not documented in prior --ignore list."
+      expires: '2026-07-22'