Which service assists in creating and managing security policies in AWS?

AWS Identity and Access Management (IAM) is the service that specifically assists in creating and managing security policies in AWS. IAM enables users to manage access to AWS services and resources securely. With IAM, you can create and manage AWS users and groups, and use permissions to allow or deny their access to AWS resources.

A key feature of IAM is its robust policy management system, where you can craft policies that define permissions in granular detail. This allows organizations to enforce security best practices by granting least privilege access, ensuring that users have only the permissions necessary to perform their jobs, thus minimizing potential security risks.

The other services mentioned, while important within the AWS ecosystem, do not directly focus on managing security policies. AWS CloudFormation is used for deploying AWS infrastructure as code, Amazon Route 53 is a DNS web service, and Amazon VPC is used for launching AWS resources within a virtual network. None of them provides the capabilities for managing user access and permissions in the way that IAM does.