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Related papers: Conditional divergence risk measures

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In this paper, we introduce the rich classes of conditional distortion (CoD) risk measures and distortion risk contribution ($\Delta$CoD) measures as measures of systemic risk and analyze their properties and representations. The classes…

Risk Management · Quantitative Finance 2019-01-29 Jan Dhaene , Roger J. A. Laeven , Yiying Zhang

As a counterpart to the (static) risk measures of generalized quantiles and motivated by Bellini et al. (2018), we propose a new kind of conditional risk measure called conditional generalized quantiles. We first show their well-definedness…

Mathematical Finance · Quantitative Finance 2023-01-31 Qinyu Wu , Fan Yang , Ping Zhang

Monitoring means to observe a system for any changes which may occur over time, using a monitor or measuring device of some sort. In this paper we formulate a problem of monitoring dates of maximal risk of a financial position. Thus, the…

Risk Management · Quantitative Finance 2009-02-17 Erick Trevino Aguilar

We introduce the concept of partial law invariance, generalizing the concepts of law invariance and probabilistic sophistication widely used in decision theory, as well as statistical and financial applications. This new concept is…

Risk Management · Quantitative Finance 2025-06-24 Yi Shen , Zachary Van Oosten , Ruodu Wang

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

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

Mean-deviation models, along with the existing theory of coherent risk measures, are well studied in the literature. In this paper, we characterize monotonic mean-deviation (risk) measures from a general mean-deviation model by applying a…

Risk Management · Quantitative Finance 2024-08-12 Xia Han , Ruodu Wang , Qinyu Wu

In this paper, an optimization problem with uncertain constraint coefficients is considered. Possibility theory is used to model the uncertainty. Namely, a joint possibility distribution in constraint coefficient realizations, called…

Optimization and Control · Mathematics 2023-09-07 Romain Guillaume , Adam Kasperski , Pawel Zielinski

In this paper, we propose a novel association measure for longitudinal studies based on the traditional definition of relative risk. In a Markovian fashion, such a proposal takes into account the information content regarding the previous…

Methodology · Statistics 2023-02-27 Lina Buitrago , Juan Sosa , Oscar Melo

We develop an approach to risk minimization and stochastic optimization that provides a convex surrogate for variance, allowing near-optimal and computationally efficient trading between approximation and estimation error. Our approach…

Machine Learning · Statistics 2017-12-15 John Duchi , Hongseok Namkoong

Set-valued risk measures on $L^p_d$ with $0 \leq p \leq \infty$ for conical market models are defined, primal and dual representation results are given. The collection of initial endowments which allow to super-hedge a multivariate claim…

Risk Management · Quantitative Finance 2014-05-22 Andreas H. Hamel , Frank Heyde , Birgit Rudloff

We study dynamic risk measures in a very general framework enabling to model uncertainty and processes with jumps. We previously showed the existence of a canonical equivalence class of probability measures hidden behind a given set of…

Probability · Mathematics 2010-12-30 Jocelyne Bion-Nadal , Magali Kervarec

We present a framework for constructing multivariate risk measures that is inspired from univariate Optimized Certainty Equivalent (OCE) risk measures. We show that this new class of risk measures verifies the desirable properties such as…

Optimization and Control · Mathematics 2022-12-07 Sarah Kaakai , Anis Matoussi , Achraf Tamtalini

In this paper, we study convex risk measures with weak optimal transport penalties. In a first step, we show that these risk measures allow for an explicit representation via a nonlinear transform of the loss function. In a second step, we…

Mathematical Finance · Quantitative Finance 2023-12-12 Michael Kupper , Max Nendel , Alessandro Sgarabottolo

Contextual stochastic optimization is an advanced methodology to model uncertainty in the presence of contextual information during decision planning processes. Although classical methodologies focus on minimizing the expectation of a…

Optimization and Control · Mathematics 2025-11-24 Man Yiu Tsang , Tony Sit , Hoi Ying Wong

We characterize when a convex risk measure associated to a law-invariant acceptance set in $L^\infty$ can be extended to $L^p$, $1\leq p<\infty$, preserving finiteness and continuity. This problem is strongly connected to the statistical…

Risk Management · Quantitative Finance 2014-01-15 Pablo Koch-Medina , Cosimo Munari

Risk measures connect probability theory or statistics to optimization, particularly to convex optimization. They are nowadays standard in applications of finance and in insurance involving risk aversion. This paper investigates a wide…

Risk Management · Quantitative Finance 2020-03-26 Paul Dommel , Alois Pichler

In this note we consider a system of financial institutions and study systemic risk measures in the presence of a financial market and in a robust setting, namely, where no reference probability is assigned. We obtain a dual representation…

Mathematical Finance · Quantitative Finance 2021-08-19 Matteo Burzoni , Marco Frittelli , Federico Zorzi

Since the quasiconvex risk measures is a bigger class than the well known convex risk measures, the study of quasiconvex risk measures makes sense especially in the financial markets with volatility. In this paper, we will study the…

Risk Management · Quantitative Finance 2019-06-26 Fei Sun , Yijun Hu

This paper proposes a new approach to estimating the distribution of a response variable conditioned on observing some factors. The proposed approach possesses desirable properties of flexibility, interpretability, tractability and…

Methodology · Statistics 2023-03-16 Cheng Peng , Stanislav Uryasev