# Reinventing Risk at Revolut

DevFeed: [Reinventing Risk at Revolut](<https://devfeed.tech/articles/reinventing-risk-at-revolut-26346.md>)

Original publisher: [Read original article](<https://medium.com/revolut/reinventing-risk-at-revolut-77e63c552503?source=rss----44c5ac415e14---4>)

Author: Konstantin Vasilev

Published: 2024-12-10T07:46:23Z

Content type: opinion

Language: en

Sources: [Revolut Engineering](<https://devfeed.tech/sources/revolut-engineering.md>)

Topics: [Finance](<https://devfeed.tech/topics/finance.md>), [Artificial Intelligence](<https://devfeed.tech/topics/ai.md>), [Software](<https://devfeed.tech/topics/software.md>)

Tags: [ai](<https://devfeed.tech/tags/ai.md>), [banking](<https://devfeed.tech/tags/banking.md>), [fake-accounts](<https://devfeed.tech/tags/fake-accounts.md>), [finance](<https://devfeed.tech/tags/finance.md>), [financial](<https://devfeed.tech/tags/financial.md>), [fraud](<https://devfeed.tech/tags/fraud.md>), [knowledge-graph](<https://devfeed.tech/tags/knowledge-graph.md>), [operations](<https://devfeed.tech/tags/operations.md>), [outage](<https://devfeed.tech/tags/outage.md>), [revolut](<https://devfeed.tech/tags/revolut.md>), [risk-management](<https://devfeed.tech/tags/risk-management.md>), [services](<https://devfeed.tech/tags/services.md>)

## AI overview

Revolut describes how its Risk function approaches financial and operational risk in a financial-services business. The article explains that risks can overlap, such as fraud involving fake accounts leading to unpaid loans, and discusses the limitations of segregating risks into separate departments.

## Source excerpt

Using probability, reasoning and AI Revolut is known for its innovation in delivering "super-app" financial services to its customers. The success is evident not only through the rocketing user growth, but also via the ripple effects caused across the banking industry -- traditional finance has to reinvent and evolve, or remain part of history, just like the internet search replaced the paper phonebook. Behind this success stands a complex and impressive machinery, which is still piloted by the same founders, who also engineered the very first components and set the Revolut rocketship in motion. This machine is mostly known for its software excellence, however, with any financial services comes the responsibility of navigating a complex net of regulations and risks. True to the company values, the Risk function at Revolut also innovates, leveraging the decades of banking experience of its leadership and adding the challenger way of thinking with the latest technology. What is Risk? One can find many definitions of risk, ranging from explanations suitable for children, "The possibility of something bad happening", to advanced statistical definitions used in finance: Uncertainty of the return on investment, characterised by standard deviation, asymmetry and tails of the return distribution and the generic ISO 31000 definition: "The effect of uncertainty on objectives" In addition, both graduate textbooks and banking regulations define two general types of risk: Financial: related to financial positions, such as: user deposits, lending, and investments in market instruments. Operational: related to failure of operations, such as: system outage, fraud and natural disasters. Some of you might already sense the inevitable challenges in distinguishing the above definitions and risks. Events seldom happen in isolation and independently: a natural disaster can lead to system outages and market crashes, similarly fraudsters might use fake accounts to withdraw loans which would