A method, computer program product, and data processing system for recognizing, tracing, diagnosing, and repairing problems in an autonomic computing system is disclosed. Rules and courses of actions to follow in logging data, in diagnosing faults (or threats of faults), and in treating faults (or threats of faults) are formulated using an adaptive inference and action system. The adaptive inference and action system includes techniques for conflict resolution that generate, prioritize, modify, and remove rules based on environment-specific information, accumulated time-sensitive data, actions taken, and the effectiveness of those actions. Thus, the present invention enables a dynamic, autonomic computing system to formulate its own strategy for self-administration, even in the face of changes in the configuration of the system.