In general, a bank's ICAAP should reflect an appropriate level of conservatism to account for uncertainty in risk identification, risk mitigation or control, quantitative processes, and any use of modeling. In most cases,  4  BIS Review 131/2007  this conservatism will result in levels of capital or capital ratios above minimum regulatory requirements to be regarded as adequate.
Pillar 3 is a key mechanism for banks to communicate to market participants about their risk profiles, their associated levels of capital, and the manner in which they are meeting the requirements in the final rule.