Correct use of hyphenation with multi-word noun and adjective [duplicate]
Try dancing around it.
based on our password policy
based on the current password policy
based on their password policy
Two hyphens is just uncouth.
CHICAGO MANUAL OF STYLE recommends using an en-dash in such situations. However, if your first compound is normally open, then it should remain open in the joined compound. For instance, there would be no hyphen between "brick" and "oven" in the above example. As such, you would have an open space between "password" and "policy" and an en-dash between "policy" and "based." Still, Ricky's solution is better.