The common steps used the the development of security policy are initiation of the project, evaluation, development, approval, publication, implementation, and maintenance. The other choices listed are the phases of the software development life cycle and not the step used to develop ducuments such as Policies, Standards, etc...

Although a auditing is a part of corporate security, it in no way supercedes the requirments for a disaster recovery plan. All others can be blamed for a plan going out of date. Source: HARRIS, Shon, All-In-One CISSP Certification Exam Guide, McGraw-Hill/Osborne, 2002, chapter 9: Disaster Recovery and Business continuity (page 609).

Internet Key Exchange (IKE or IKEv2) is the protocol used to set up a security association (SA) in the IPsec protocol suite. IKE builds upon the Oakley protocol and ISAKMP. IKE uses X.509 certificates for authentication which are either pre-shared or distributed using DNS (preferably with DNSSEC) and a Diffie-Hellman key exchange to set up a shared session secret from which cryptographic keys are derived.
Internet Key Exchange (IKE) Internet key exchange allows communicating partners to
prove their identity to each other and establish a secure communication channel, and is
applied as an authentication component of IPSec.
IKE uses two phases:
Phase 1: In this phase, the partners authenticate with each other, using one of the
following:
Shared Secret: A key that is exchanged by humans via telephone, fax, encrypted e-mail,
etc.
Public Key Encryption: Digital certificates are exchanged.
Revised mode of Public Key Encryption: To reduce the overhead of public key encryption,
a nonce (a Cryptographic function that refers to a number or bit string used only once, in
security engineering) is encrypted with the communicating partner's public key, and the
peer's identity is encrypted with symmetric encryption using the nonce as the key. Next,
IKE establishes a temporary security association and secure tunnel to protect the rest of
the key exchange. Phase 2: The peers' security associations are established, using the
secure tunnel and temporary SA created at the end of phase 1.
The following reference(s) were used for this question:
Hernandez CISSP, Steven (2012-12-21). Official (ISC)2 Guide to the CISSP CBK, Third
Edition ((ISC)2 Press) (Kindle Locations 7032-7048). Auerbach Publications. Kindle
Edition.
and
RFC 2409 at http://tools.ietf.org/html/rfc2409
and
http://en.wikipedia.org/wiki/Internet_Key_Exchange

Sesame is an authentication and access control protocol, that also supports communication confidentiality and integrity. It provides public key based authentication along with the Kerberos style authentication, that uses symmetric key cryptography. Sesame supports the Kerberos protocol and adds some security extensions like public key based authentication and an ECMA-style Privilege Attribute Service.
The users under SESAME can authenticate using either symmetric encryption as in Kerberos or Public Key authentication. When using Symmetric Key authentication as in Kerberos, SESAME is also vulnerable to password guessing just like Kerberos would be. The Symmetric key being used is based on the password used by the user when he logged on the system. If the user has a simple password it could be guessed or compromise. Even thou Kerberos or SESAME may be use, there is still a need to have strong password discipline.
The Basic Mechanism in Sesame for strong authentication is as follow:
The user sends a request for authentication to the Authentication Server as in Kerberos, except that SESAME is making use of public key cryptography for authentication where the client will present his digital certificate and the request will be signed using a digital signature. The signature is communicated to the authentication server through the preauthentication fields. Upon receipt of this request, the authentication server will verifies the certificate, then validate the signature, and if all is fine the AS will issue a ticket granting ticket (TGT) as in Kerberos. This TGT will be use to communicate with the privilage attribute server (PAS) when access to a resource is needed.
Users may authenticate using either a public key pair or a conventional (symmetric) key. If public key cryptography is used, public key data is transported in preauthentication data fields to help establish identity. Kerberos uses tickets for authenticating subjects to objects and SESAME uses Privileged Attribute Certificates (PAC), which contain the subject's identity, access capabilities for the object, access time period, and lifetime of the PAC. The PAC is digitally signed so that the object can validate that it came from the trusted authentication server, which is referred to as the privilege attribute server (PAS). The PAS holds a similar role as the KDC within Kerberos. After a user successfully authenticates to the authentication service (AS), he is presented with a token to give to the PAS. The PAS then creates a PAC for the user to present to the resource he is trying to access.
Reference(s) used for this question:
http://srg.cs.uiuc.edu/Security/nephilim/Internal/SESAME.txt and KRUTZ, Ronald L. & VINES, Russel D., The CISSP Prep Guide: Mastering the Ten Domains of Computer Security, 2001, John Wiley & Sons, Page 43.

An e-mail message's confidentiality is protected when encrypted with the receiver's public key, because he is the only one able to decrypt the message. The sender is not supposed to have the receiver's private key. By encrypting a message with its private key, anybody possessing the corresponding public key would be able to read the message. By encrypting the message with its public key, not even the receiver would be able to read the message.
Source: HARRIS, Shon, All-In-One CISSP Certification Exam Guide, McGraw-Hill/Osborne, 2002, chapter 8: Cryptography (page 517).