Policies support dynamic values through policy templating. One such option is Hub policy templating, which are templates that are executed on the Hub before the policy is distributed to the managed clusters. Hub policy templating supports Kubernetes API queries such as getting a field from a ConfigMap.
The current limitation is that if a referenced object in the Hub policy template is updated, it does not immediately cause the policy to be reconciled with this update. This does happen every ten hours or every time the policy is reconciled such as when the policy status is updated or the policy applies to a new cluster. A workaround exists where the policy.open-cluster-management.io/trigger-update annotation can be updated on the policy to cause the policy to be reconciled immediately.
The current options that trigger the policy to be reconciled are insufficient and it should happen automatically and immediately when the referenced object is updated.