diff --git a/modules/folder/organization-policies.tf b/modules/folder/organization-policies.tf
index 2bf79c4ab6..90d45ff01d 100644
--- a/modules/folder/organization-policies.tf
+++ b/modules/folder/organization-policies.tf
@@ -19,7 +19,7 @@
 locals {
   _factory_data_raw = merge([
     for f in try(fileset(var.org_policies_data_path, "*.yaml"), []) :
-    yamldecode(file("${var.org_policies_data_path}/${f}"))
+    try(yamldecode(file("${var.org_policies_data_path}/${f}")), {})
   ]...)
 
   # simulate applying defaults to data coming from yaml files
diff --git a/modules/organization/organization-policies.tf b/modules/organization/organization-policies.tf
index 8d867f668c..602e72305b 100644
--- a/modules/organization/organization-policies.tf
+++ b/modules/organization/organization-policies.tf
@@ -19,7 +19,7 @@
 locals {
   _factory_data_raw = merge([
     for f in try(fileset(var.org_policies_data_path, "*.yaml"), []) :
-    yamldecode(file("${var.org_policies_data_path}/${f}"))
+    try(yamldecode(file("${var.org_policies_data_path}/${f}")), {})
   ]...)
 
   # simulate applying defaults to data coming from yaml files
diff --git a/modules/project/organization-policies.tf b/modules/project/organization-policies.tf
index 37e6f2531f..e4f10ddaae 100644
--- a/modules/project/organization-policies.tf
+++ b/modules/project/organization-policies.tf
@@ -19,7 +19,7 @@
 locals {
   _factory_data_raw = merge([
     for f in try(fileset(var.org_policies_data_path, "*.yaml"), []) :
-    yamldecode(file("${var.org_policies_data_path}/${f}"))
+    try(yamldecode(file("${var.org_policies_data_path}/${f}")), {})
   ]...)
 
   # simulate applying defaults to data coming from yaml files