From the Company Settings Overview in the Admin area, select Relationship Circles in the list:
To create a new Circle, click on Create a Circle
You will have to add a Name, a Description, and Responsibilities.
Once you are done, simply hit Create.
You can create as many circles as needed and update them as you see fit.
Please note that if you are managing multiple companies at the same time you don't need to create new duplicate Circles. You can instead import the same Circles to every level in your organisation via the company's Add From Library option.
When Relationship Circles are defined they can be added and used to any of your company's relationships via the relationship Team page.