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This paper provides a unified framework, which allows, in particular, to study the structure of dynamic monetary risk measures and dynamic acceptability indices. The main mathematical tool, which we use here, and which allows us to…

Probability · Mathematics 2014-08-22 Tomasz R. Bielecki , Igor Cialenco , Samuel Drapeau , Martin Karliczek

We establish dual representations for systemic risk measures based on acceptance sets in a general setting. We deal with systemic risk measures of both "first allocate, then aggregate" and "first aggregate, then allocate" type. In both…

Mathematical Finance · Quantitative Finance 2019-10-25 Maria Arduca , Pablo Koch-Medina , Cosimo Munari

This paper compares two different frameworks recently introduced in the literature for measuring risk in a multi-period setting. The first corresponds to applying a single coherent risk measure to the cumulative future costs, while the…

Risk Management · Quantitative Finance 2015-03-19 Dan A. Iancu , Marek Petrik , Dharmashankar Subramanian

In this paper we analyze a dynamic recursive extension of the (static) notion of a deviation measure and its properties. We study distribution invariant deviation measures and show that the only dynamic deviation measure which is law…

Risk Management · Quantitative Finance 2018-12-12 Mitja Stadje

Our paper contributes to the theory of conditional risk measures and conditional certainty equivalents. We adopt a random modular approach which proved to be effective in the study of modular convex analysis and conditional risk measures.…

Mathematical Finance · Quantitative Finance 2022-11-10 Giulio Principi , Fabio Maccheroni

We give an axiomatic framework for conditional generalized deviation measures. Under financially reasonable assumptions, we give the correspondence between conditional coherent risk measures and generalized deviation measures. Moreover, we…

Risk Management · Quantitative Finance 2023-02-21 Guangyan Jia , Mengjin Zhao

A class of multivariate mixed survival models for continuous and discrete time with a complex covariance structure is introduced in a context of quantitative genetic applications. The methods introduced can be used in many applications in…

Applications · Statistics 2014-05-06 Rafael Pimentel Maia , Per Madsen , Rodrigo Labouriau

This paper approaches the definition and properties of dynamic convex risk measures through the notion of a family of concave valuation operators satisfying certain simple and credible axioms. Exploring these in the simplest context of a…

Risk Management · Quantitative Finance 2008-12-02 A. Jobert , L. C. G. Rogers

We propose a dynamical model for the estimation of Operational Risk in banking institutions. Operational Risk is the risk that a financial loss occurs as the result of failed processes. Examples of operational losses are the ones generated…

Risk Management · Quantitative Finance 2012-02-14 Marco Bardoscia , Roberto Bellotti

Dimensionality reduction methods are an essential tool for multidimensional data analysis, and many interesting processes can be studied as time-dependent multivariate datasets. There are, however, few studies and proposals that leverage on…

Graphics · Computer Science 2020-02-19 E. F. Vernier , R. Garcia , I. P. da Silva , J. L. D. Comba , A. C. Telea

In this paper we provide a flexible framework allowing for a unified study of time consistency of risk measures and performance measures (also known as acceptability indices). The proposed framework not only integrates existing forms of…

Probability · Mathematics 2017-09-08 Tomasz R. Bielecki , Igor Cialenco , Marcin Pitera

We study combinations of risk measures under no restrictive assumption on the set of alternatives. We develop and discuss results regarding the preservation of properties and acceptance sets for the combinations of risk measures. One of the…

Mathematical Finance · Quantitative Finance 2023-05-09 Marcelo Brutti Righi

The new notion of maturity-independent risk measures is introduced and contrasted with the existing risk measurement concepts. It is shown, by means of two examples, one set on a finite probability space and the other in a diffusion…

Risk Management · Quantitative Finance 2008-12-02 Thaleia Zariphopoulou , Gordan Zitkovic

We propose three measures of mutual dependence between multiple random vectors. All the measures are zero if and only if the random vectors are mutually independent. The first measure generalizes distance covariance from pairwise dependence…

Statistics Theory · Mathematics 2018-05-18 Ze Jin , David S. Matteson

We present an approach to the dynamic valuation of exposure risks in the multi-period setting, which incorporates a dynamic and multiple diversification of risks in Pareto optimal sense. This approach extends classical indifference premium…

Probability · Mathematics 2009-06-10 Kei Fukuda , Akihiko Inoue , Yumiharu Nakano

In this paper we present a framework for risk-averse model predictive control (MPC) of linear systems affected by multiplicative uncertainty. Our key innovation is to consider time-consistent, dynamic risk metrics as objective functions to…

Optimization and Control · Mathematics 2015-11-24 Yin-Lam Chow , Marco Pavone

The purpose of this paper is to describe and extend the use of the newly-introduced measure, residual estimation risk. Following the seminal work of Bignozzi and Tsanakas, the quantification of residual estimation risk is proposed in a…

Risk Management · Quantitative Finance 2026-03-19 D. J. Manuge

Multi-period measures of risk account for the path that the value of an investment portfolio takes. In the context of probabilistic risk measures, the focus has traditionally been on the magnitude of investment loss and not on the dimension…

Portfolio Management · Quantitative Finance 2016-06-28 Ola Mahmoud

We investigate the dynamical systems modeling conflict processes between a pair of opponents. We assume that opponents are given on a common space by distributions (probability measures) having the similar or self-similar structure. Our…

Dynamical Systems · Mathematics 2016-07-06 Volodymyr Koshmanenko , Inga Verygina

In this paper we investigate the applicability of a recently introduced primal-dual splitting method in the context of solving portfolio optimization problems which assume the minimization of risk measures associated to different convex…

Optimization and Control · Mathematics 2013-04-30 Radu Ioan Bot , Christopher Hendrich