Large banks typically allocate risk capital for credit, operational, and market/ALM risks. Which of the following statements ranks the typical amount of risk capital allocated to these different risks correctly?
A. Market/ALM risk requires more risk capital than credit risk.
B. Credit risk requires more risk capital than market/ALM risk, which requires more risk capital than operational risk.
C. Market/ALM risk requires more risk capital than operational risk but less than credit risk.
D. Credit risk requires more risk capital than operational risk, which requires more risk capital than market/ALM.