Can the IS department develop the system that users want? This is____________________ type of risk.

The type of risk referred to in the question relates directly to the ability of the Information Systems (IS) department to develop a system that meets user requirements effectively. This category of risk is labeled as "Development" risk.

Development risk encompasses challenges in the actual creation and implementation of a system. It questions whether the IS department can correctly interpret the user’s needs, whether the resources (time, personnel, technology) are sufficient to build the desired system, and if they can accomplish this within the prescribed timelines and budget. Since development risk focuses specifically on the capability and effectiveness of the IS department in delivering a system that is both functional and aligned with user expectations, it is the most fitting option in this context.

The other categories—organizational, market, and technical risks—address different aspects. Organizational risk involves the alignment of the project with the company’s structure and culture, market risk relates to how well the system may perform or succeed in the competitive landscape, and technical risk encompasses issues with the technologies used. Thus, these do not directly capture the essence of whether the IS department can deliver the specific system users want.