Some of these risks are sufficiently modest that they can be addressed through the supervisory process - Pillar II. But one risk, operational risk, has been historically so important in the depletion of capital and the failure of banks that it should be subject to specific Pillar I minimum capital requirements.
Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events, and it includes legal and compliance-related risks.