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Basel II
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=== The second pillar: Supervisory review process === This is a regulatory response to the first pillar, giving [[Bank regulation|regulators]] better 'tools' over those previously available. It also provides a framework for dealing with [[systemic risk]], [[pension risk]], [[concentration risk]], [[strategic risk]], [[reputational risk]], [[liquidity risk]] and [[legal risk]], which the accord combines under the title of residual risk. Banks can review their risk management system. {{anchor|ICAAP}}The Internal Capital Adequacy Assessment Process (ICAAP) is a result of Pillar 2 of Basel II accords.
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