Overview: Session 3: Operational Risk versus Enterprise Risk, Compliance Risk, and Conduct Risk

What this session is about

This session helps you distinguish operational risk from other closely related ideas that often appear in the same incident. You will learn how enterprise risk management provides the wider organisational framework, how compliance risk focuses on obligations and rules, and how conduct risk focuses on behaviour and harmful outcomes. The aim is practical: clearer classification leads to clearer ownership and better action.

Learning objectives

·       Distinguish operational risk from enterprise risk management (ERM) and explain why ERM is the wider organisation-wide framework.

·       Differentiate operational risk from compliance risk using practical triggers, ownership, and reporting implications.

·       Explain conduct risk using a practical working definition and recognise how behaviour, incentives, and culture can create harm.

·       Identify when an issue is primarily one risk type and when it is a multi-risk event with overlap.

·       Choose an appropriate first owner, escalation path, and management lens for mixed scenarios.

Session map