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We study the impact of contagion in a network of firms facing credit risk. We describe an intensity based model where the homogeneity assumption is broken by introducing a random environment that makes it possible to take into account the…

Risk Management · Quantitative Finance 2008-12-02 Paolo Dai Pra , Marco Tolotti

Risk assessment plays a crucial role in ensuring the security and resilience of modern computer systems. Existing methods for conducting risk assessments often suffer from tedious and time-consuming processes, making it challenging to…

Cryptography and Security · Computer Science 2023-07-27 Simon Unger , Ektor Arzoglou , Markus Heinrich , Dirk Scheuermann , Stefan Katzenbeisser

This study presents a hierarchical mining framework for high-dimensional imbalanced data, leveraging a depth graph model to address the inherent performance limitations of conventional approaches in handling complex, high-dimensional data…

Machine Learning · Computer Science 2025-02-07 Yijiashun Qi , Quanchao Lu , Shiyu Dou , Xiaoxuan Sun , Muqing Li , Yankaiqi Li

Enterprise credit assessment is critical for evaluating financial risk, and Graph Neural Networks (GNNs), with their advanced capability to model inter-entity relationships, are a natural tool to get a deeper understanding of these…

Machine Learning · Computer Science 2024-07-17 Shaopeng Wei , Beni Egressy , Xingyan Chen , Yu Zhao , Fuzhen Zhuang , Roger Wattenhofer , Gang Kou

As an intrinsic and fundamental property of big data, data heterogeneity exists in a variety of real-world applications, such as precision medicine, autonomous driving, financial applications, etc. For machine learning algorithms, the…

Machine Learning · Computer Science 2023-04-04 Jiashuo Liu , Jiayun Wu , Bo Li , Peng Cui

Fault intensity diagnosis (FID) plays a pivotal role in monitoring and maintaining mechanical devices within complex industrial systems. As current FID methods are based on chain of thought without considering dependencies among target…

Financial distress prediction remains a significant challenge in enterprise risk analysis due to the highly imbalanced nature of real-world financial datasets, where bankrupt or distressed firms typically constitute only a small minority of…

Machine Learning · Computer Science 2026-05-15 Karan Sehgal , Khawar Naveed Bhatti

Corporate insolvency can have a devastating effect on the economy. With an increasing number of companies making expansion overseas to capitalize on foreign resources, a multinational corporate bankruptcy can disrupt the world's financial…

Statistical Finance · Quantitative Finance 2018-02-16 Jacky C. K. Chow

Machine learning plays an essential role in preventing financial losses in the banking industry. Perhaps the most pertinent prediction task that can result in billions of dollars in losses each year is the assessment of credit risk (i.e.,…

Risk Management · Quantitative Finance 2021-01-01 Jillian M. Clements , Di Xu , Nooshin Yousefi , Dmitry Efimov

Propagation of balance-sheet or cash-flow insolvency across financial institutions may be modeled as a cascade process on a network representing their mutual exposures. We derive rigorous asymptotic results for the magnitude of contagion in…

Risk Management · Quantitative Finance 2014-03-26 Hamed Amini , Rama Cont , Andreea Minca

Defect phase diagrams provide a unified description of crystal defect states for materials design and are central to the scientific objectives of the Collaborative Research Centre (CRC) 1394. Their construction requires the systematic…

We develop a hierarchical infinite latent factor model (HIFM) to appropriately account for the covariance structure across subpopulations in data. We propose a novel Hierarchical Dirichlet Process shrinkage prior on the loadings matrix that…

Applications · Statistics 2018-07-25 Elizabeth Lorenzi , Ricardo Henao , Katherine Heller

Statistical heterogeneity of data present at client devices in a federated learning (FL) system renders the training of a global model in such systems difficult. Particularly challenging are the settings where due to communication resource…

Machine Learning · Computer Science 2024-10-07 Huancheng Chen , Haris Vikalo

The $\boldsymbol{\beta}$-model for random graphs is commonly used for representing pairwise interactions in a network with degree heterogeneity. Going beyond pairwise interactions, Stasi et al. (2014) introduced the hypergraph…

Statistics Theory · Mathematics 2024-06-07 Sagnik Nandy , Bhaswar B. Bhattacharya

Hypergraph can capture complex and higher-order dependencies among learners and learning resources in personalized educational recommender systems. Many existing hypergraph-based recommendation approaches underexplored the dynamic…

Information Retrieval · Computer Science 2026-03-17 Tao Xie , Yan Li , Yongpan Sheng , Jian Liao

Horizontal federated learning (HFL) enables distributed clients to train a shared model and keep their data privacy. In training high-quality HFL models, the data heterogeneity among clients is one of the major concerns. However, due to the…

Human-Computer Interaction · Computer Science 2022-08-17 Xumeng Wang , Wei Chen , Jiazhi Xia , Zhen Wen , Rongchen Zhu , Tobias Schreck

The viral spread of fake news has caused great social harm, making fake news detection an urgent task. Current fake news detection methods rely heavily on text information by learning the extracted news content or writing style of internal…

Social and Information Networks · Computer Science 2021-02-16 Yuxiang Ren , Jiawei Zhang

Large Language Models (LLMs) are increasingly employed in applications that require processing information from heterogeneous formats, including texts, tables, infoboxes, and knowledge graphs. However, systematic biases toward particular…

Computation and Language · Computer Science 2026-01-14 Jiacheng Liu , Mayi Xu , Qiankun Pi , Wenli Li , Ming Zhong , Yuanyuan Zhu , Mengchi Liu , Tieyun Qian

We introduce a general model for the balance-sheet consistent valuation of interbank claims within an interconnected financial system. Our model represents an extension of clearing models of interdependent liabilities to account for the…

Risk Management · Quantitative Finance 2020-06-03 Paolo Barucca , Marco Bardoscia , Fabio Caccioli , Marco D'Errico , Gabriele Visentin , Guido Caldarelli , Stefano Battiston

In many applications, data can be heterogeneous in the sense of spanning latent groups with different underlying distributions. When predictive models are applied to such data the heterogeneity can affect both predictive performance and…

Machine Learning · Statistics 2022-05-04 Thomas Lartigue , Sach Mukherjee
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