I have already noted that supervisors will verify the process for determining credit-risk measurement, for ensuring ongoing control over the process of determining these risk-measure inputs, and for ensuring that the risk inputs are used for more than calculation of regulatory capital.
In addition, Pillar II requires that the bank maintain its own internal assessment of its risk relative to its capital - both currently and over the cycle as well as in periods of stress - and that the supervisor review and respond to that assessment.