The IAM policy hierarchy follows the same path as the Cloud Platform Resource Hierarchy. If you change the resource hierarchy, the policy hierarchy changes as well. For example, moving a project into an organization will update the project's IAM policy to inherit from the organization's IAM policy. Similarly, moving a project from one folder to another will change the inherited permissions. Permissions that were inherited by the project from the original parent will be lost when the project is moved to a new folder. Permissions set at the destination folder will be inherited by the project as it is moved.