Policy-Based Routing (PBR) allows network administrators to override the default routing behavior and specify how traffic should be routed based on matching criteria. PBR uses route-maps to match packets and set the next-hop. Route-maps contain match and set clauses - match clauses define the conditions to match packets, and set clauses define the action to take for matched packets such as specifying the next-hop router. Network administrators configure PBR by defining route-maps with match and set statements, applying the route-map to an interface with the ip policy command.