Revolut Ties Employee Bonuses to Risky Behavior: What You Need to Know
In 2020, Revolut launched the Karama system, a proprietary points-based framework aimed at monitoring and managing risky behavior among its employees. This innovative system not only tracks employee actions but also impacts their bonuses based on a series of processes. With a focus on enhancing company culture and compliance, Karama plays a crucial role in Revolut’s operational framework.
Expansion of the Karama System
According to Revolut’s 2024 annual report, the Karama system has undergone significant expansion. Now encompassing over 30 risk and compliance processes, it operates at a departmental level to foster collective responsibility among staff members.
Benefits of the Karama System
- Feedback Loop: Karama serves as an effective feedback mechanism that rewards positive behaviors while addressing negative ones.
- Risk Oversight: The system acts as a comprehensive oversight engine, enabling Revolut to prioritize essential developments in risk and compliance.
Addressing Compliance Issues
Revolut has faced various challenges related to risk and compliance in recent years. Notably, the company secured a UK banking license after a lengthy three-year process marked by regulatory concerns over its auditing and corporate culture.
Recent Penalties
In addition to its licensing challenges, Revolut was recently fined €3.5 million by the central bank of Lithuania due to deficiencies in its anti-money laundering controls. These incidents underline the ongoing need for robust compliance measures within the organization.
Financial Performance Highlights
Despite compliance challenges, Revolut has demonstrated strong financial growth. The company reported pre-tax profits of $1.4 billion and a net profit of $1 billion for the year. Additionally, group revenues surged by 72% to reach $4 billion, up from $2.2 billion in 2023, driven by a rapidly expanding user base and diverse revenue streams.
For more insights into Revolut’s operations and financial performance, visit their official website.
