9.

Basel III Pillar 2 encourages additional good risk management practice that enhances Pillar 1 procedures by requiring banks to:

a.

manage risks not fully covered in Pillar 1 such as credit concentration risk.

b.

manage factors not covered by Pillar 1 such as interest rate risk.

c.

manage factors that are external to the bank such as business cycle effects, political risk and contagion risks.

d.

all of the above.

Clear my choice