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We propose and analyze algorithms for distributionally robust optimization of convex losses with conditional value at risk (CVaR) and $\chi^2$ divergence uncertainty sets. We prove that our algorithms require a number of gradient…

Optimization and Control · Mathematics 2020-12-14 Daniel Levy , Yair Carmon , John C. Duchi , Aaron Sidford

In a wide variety of sequential decision making problems, it can be important to estimate the impact of rare events in order to minimize risk exposure. A popular risk measure is the conditional value-at-risk (CVaR), which is commonly…

Machine Learning · Statistics 2020-12-11 Dylan Troop , Frédéric Godin , Jia Yuan Yu

Risk-sensitive reinforcement learning (RL) aims to optimize policies that balance the expected reward and risk. In this paper, we present a novel risk-sensitive RL framework that employs an Iterated Conditional Value-at-Risk (CVaR)…

Machine Learning · Computer Science 2023-12-05 Yu Chen , Yihan Du , Pihe Hu , Siwei Wang , Desheng Wu , Longbo Huang

Though deep reinforcement learning (DRL) has obtained substantial success, it may encounter catastrophic failures due to the intrinsic uncertainty of both transition and observation. Most of the existing methods for safe reinforcement…

Machine Learning · Computer Science 2025-05-20 Chengyang Ying , Xinning Zhou , Hang Su , Dong Yan , Ning Chen , Jun Zhu

Autonomous cyber and cyber-physical systems need to perform decision-making, learning, and control in unknown environments. Such decision-making can be sensitive to multiple factors, including modeling errors, changes in costs, and impacts…

Artificial Intelligence · Computer Science 2023-04-05 Abdullah Al Maruf , Luyao Niu , Bhaskar Ramasubramanian , Andrew Clark , Radha Poovendran

For many real-world decision-making problems subject to uncertainty, it may be essential to deal with multiple and often conflicting objectives while taking the decision-makers' risk preferences into account. Conditional value-at-risk…

Optimization and Control · Mathematics 2023-02-14 Najmesadat Nazemi , Sophie N. Parragh , Walter J. Gutjahr

We study risk-sensitive Reinforcement Learning (RL), where we aim to maximize the Conditional Value at Risk (CVaR) with a fixed risk tolerance $\tau$. Prior theoretical work studying risk-sensitive RL focuses on the tabular Markov Decision…

Machine Learning · Computer Science 2023-11-21 Yulai Zhao , Wenhao Zhan , Xiaoyan Hu , Ho-fung Leung , Farzan Farnia , Wen Sun , Jason D. Lee

We develop a variant of the stochastic prox-linear method for minimizing the Conditional Value-at-Risk (CVaR) objective. CVaR is a risk measure focused on minimizing worst-case performance, defined as the average of the top quantile of the…

Optimization and Control · Mathematics 2023-05-30 Si Yi Meng , Robert M. Gower

This thesis presents the Conditional Value-at-Risk concept and combines an analysis that covers its application as a risk measure and as a vector norm. For both areas of application the theory is revised in detail and examples are given to…

Risk Management · Quantitative Finance 2015-11-03 Jakob Kisiala

Value-at-Risk (VaR) and Conditional Value-at-Risk (CVaR) are two risk measures which are widely used in the practice of risk management. This paper deals with the problem of computing both VaR and CVaR using stochastic approximation (with…

Computational Finance · Quantitative Finance 2010-12-06 Olivier Aj Bardou , Noufel Frikha , G. Pagès

In this paper, we study a novel episodic risk-sensitive Reinforcement Learning (RL) problem, named Iterated CVaR RL, which aims to maximize the tail of the reward-to-go at each step, and focuses on tightly controlling the risk of getting…

Machine Learning · Computer Science 2023-05-12 Yihan Du , Siwei Wang , Longbo Huang

We study a class of stochastic optimal design problems for elliptic partial differential equations in divergence form, where the coefficients represent mixtures of two conducting materials. The objective is to minimize a generalized risk…

Optimization and Control · Mathematics 2026-02-24 Amal Alphonse , Petar Kunštek , Marko Vrdoljak

In the classical Reinforcement Learning (RL) setting, one aims to find a policy that maximizes its expected return. This objective may be inappropriate in safety-critical domains such as healthcare or autonomous driving, where intrinsic…

Machine Learning · Computer Science 2022-05-19 M. Godbout , M. Heuillet , S. Chandra , R. Bhati , A. Durand

We develop an approach for solving time-consistent risk-sensitive stochastic optimization problems using model-free reinforcement learning (RL). Specifically, we assume agents assess the risk of a sequence of random variables using dynamic…

Machine Learning · Computer Science 2022-12-01 Anthony Coache , Sebastian Jaimungal

Safe reinforcement learning (RL) aims to learn policies that satisfy certain constraints before deploying them to safety-critical applications. Previous primal-dual style approaches suffer from instability issues and lack optimality…

Machine Learning · Computer Science 2022-06-20 Zuxin Liu , Zhepeng Cen , Vladislav Isenbaev , Wei Liu , Zhiwei Steven Wu , Bo Li , Ding Zhao

Minimising a spectral risk objective, defined as a convex combination of expected cost and Conditional Value-at-Risk (CVaR), is challenging when the uncertainty distribution is decision-dependent, making both surrogate modelling and…

Machine Learning · Computer Science 2026-03-16 Marcell T. Kurbucz

Mainstream approximate action-value iteration reinforcement learning (RL) algorithms suffer from overestimation bias, leading to suboptimal policies in high-variance stochastic environments. Quantile-based action-value iteration methods…

Machine Learning · Computer Science 2025-12-09 Clinton Enwerem , Aniruddh G. Puranic , John S. Baras , Calin Belta

Conditional Value at Risk (CVaR) is a family of "coherent risk measures" which generalize the traditional mathematical expectation. Widely used in mathematical finance, it is garnering increasing interest in machine learning, e.g., as an…

Machine Learning · Computer Science 2020-11-17 Zakaria Mhammedi , Benjamin Guedj , Robert C. Williamson

We study a linear-quadratic, optimal control problem on a discrete, finite time horizon with distributional ambiguity, in which the cost is assessed via Conditional Value-at-Risk (CVaR). We take steps toward deriving a scalable dynamic…

Systems and Control · Electrical Eng. & Systems 2022-06-28 Margaret P. Chapman , Laurent Lessard

Planning through crowded environments under uncertain obstacle motions remains difficult, as stochastic interactions often induce overly conservative behavior or reduced efficiency. To address this challenge, we propose an end-to-end risk…

Robotics · Computer Science 2026-05-21 Xinyi Wang , Taekyung Kim , Bardh Hoxha , Georgios Fainekos , Dimitra Panagou