Section: Volume D
Explanation:
Business risk relates to the likelihood that the new system may not meet the user business needs, requirements and expectations. Here in this stem it is said that the business requirements that were to be addressed by the new system are still unfulfilled, therefore it is a business risk.
Incorrect Answers:
A: This is one of the components of risk. Inherent risk is the risk level or exposure without applying controls or other management actions into account. But here in this stem no description of control is given, hence it cannot be concluded whether it is an inherent risk or not.
C: Project risk are related to the delay in project deliverables. The project activities to design and develop the system exceed the limits of the financial resources set aside for the project. As a result, the project completion will be delayed. They are not related to fulfillment of business requirements.
D: This is one of the components of risk. Residual risk is the risk that remains after applying controls.
But here in this stem no description of control is given, hence it cannot be concluded whether it is a residual risk or not.

Section: Volume D
Explanation:
Organizations should create a structured ISG document development process. A formal process gives many areas the opportunity to comment on a policy. This is very important for high-level policies that apply to the whole organization. A formal process also makes sure that final policies are communicated to employees. It also provides organizations with a way to make sure that policies are reviewed regularly.
In general, a policy development process should include the following steps:
1. Development
2. Stakeholder review
3. Management approval
4. Communication to employees
5. Documentation of compliance or exceptions
6. Continued awareness activities
7. Maintenance and review
Incorrect Answers:
A, B, C: These are the earlier phases in policy development process.

Section: Volume D