The phrase "lax policies" refers to rules or regulations that are not strict or strongly enforced. It means there is leniency or a lack of control in how things are managed. Full definition
Law firms deal with some of the most confidential and sensitive data in society and yet so many of them have such lax policies on information security. (slaw.ca)
If skeptics are wrong, then underpricing would lead to too lax a policy. (niskanencenter.org)
Though the outcomes of the investigations were not immediately clear, the report appears to tacitly acknowledge that coal ash is dangerous, a position that would contradict the agency's own lax policy toward the waste product.» (treehugger.com)