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The paper proposes an intermittent communication mechanism for the tracking consensus of high-order nonlinear multi-agent systems (MASs) surrounded by random disturbances. Each collaborating agent is described by a class of high-order…

Systems and Control · Electrical Eng. & Systems 2024-01-12 Ali Azarbahram

This paper develops a safety analysis method for stochastic systems that is sensitive to the possibility and severity of rare harmful outcomes. We define risk-sensitive safe sets as sub-level sets of the solution to a non-standard optimal…

Systems and Control · Electrical Eng. & Systems 2022-06-28 Margaret P. Chapman , Riccardo Bonalli , Kevin M. Smith , Insoon Yang , Marco Pavone , Claire J. Tomlin

We tackle the problem of estimating risk measures of the infinite-horizon discounted cost within a Markov cost process. The risk measures we study include variance, Value-at-Risk (VaR), and Conditional Value-at-Risk (CVaR). First, we show…

Machine Learning · Computer Science 2024-04-12 Gugan Thoppe , L. A. Prashanth , Sanjay Bhat

Value-at-risk (VaR) has been playing the role of a standard risk measure since its introduction. In practice, the delta-normal approach is usually adopted to approximate the VaR of portfolios with option positions. Its effectiveness,…

Methodology · Statistics 2019-04-22 Junyao Chen , Tony Sit , Hoi Ying Wong

Inspired by reliability issues in electric transmission networks, we use a probabilistic approach to study the occurrence of large failures in a stylized cascading failure model. In this model, lines have random capacities that initially…

Probability · Mathematics 2016-04-14 F. Sloothaak , S. C. Borst , A. P. Zwart

Weather and environmental factors are verified to have played significant roles in historical major cascading outages and blackouts. Therefore, in the simulation and risk assessment of cascading outages in power systems, it is necessary to…

Computational Engineering, Finance, and Science · Computer Science 2017-05-05 Rui Yao , Kai Sun

In this work, we consider the consensus problem in which legitimate agents share their values over an undirected communication network in the presence of malicious or faulty agents. Different from the previous works, we characterize the…

Systems and Control · Electrical Eng. & Systems 2024-03-27 Sarper Aydın , Orhan Eren Akgün , Stephanie Gil , Angelia Nedić

Conditional value-at-risk (CoVaR) is one of the most important measures of systemic risk. It is defined as the high quantile conditional on a related variable being extreme, widely used in the field of quantitative risk management. In this…

Methodology · Statistics 2026-02-12 Zhaowen Wang , Yutao Liu , Deyuan Li

People often learn from other's actions when they make decisions while doing online shopping. This kind of observational learning may lead to information cascades, which means agents might ignore their own signals and follow the 'trend'…

Social and Information Networks · Computer Science 2024-02-08 Yuming Han

We quantify the value-at-risk of inter-vehicle collision and detachment for a class of platoons, which are governed by second-order dynamics in presence of communication time-delay and exogenous stochastic noise. Closed-form expressions for…

Systems and Control · Computer Science 2019-11-26 Christoforos Somarakis , Yaser Ghaedsharaf , Nader Motee

We introduce a novel data-driven method to mitigate the risk of cascading failures in delayed discrete-time Linear Time-Invariant (LTI) systems. Our approach involves formulating a distributionally robust finite-horizon optimal control…

Optimization and Control · Mathematics 2023-10-19 Guangyi Liu , Arash Amini , Vivek Pandey , Nader Motee

Value at risk (VaR) is a risk measure that has been widely implemented by financial institutions. This paper measures the correlation among asset price changes implied from VaR calculation. Empirical results using US and UK equity indexes…

Risk Management · Quantitative Finance 2011-03-30 John Cotter , François Longin

External or internal shocks may lead to the collapse of a system consisting of many agents. If the shock hits only one agent initially and causes it to fail, this can induce a cascade of failures among neighoring agents. Several critical…

Risk Management · Quantitative Finance 2015-06-11 Claudio J. Tessone , Antonios Garas , Beniamino Guerra , Frank Schweitzer

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

Predicting future values at risk (fVaR) is an important problem in finance. They arise in the modelling of future initial margin requirements for counterparty credit risk and future market risk VaR. One is also interested in derived…

Computational Finance · Quantitative Finance 2021-04-27 Narayan Ganesan , Bernhard Hientzsch

CoVaR (conditional value-at-risk) is a crucial measure for assessing financial systemic risk, which is defined as a conditional quantile of a random variable, conditioned on other random variables reaching specific quantiles. It enables the…

Risk Management · Quantitative Finance 2023-10-31 Weihuan Huang

We study the properties of Expected Shortfall from the point of view of financial risk management. This measure --- which emerges as a natural remedy in some cases where Value at Risk (VaR) is not able to distinguish portfolios which bear…

Statistical Mechanics · Physics 2008-12-02 Carlo Acerbi , Claudio Nordio , Carlo Sirtori

Two mobile agents, starting from different nodes of an $n$-node network at possibly different times, have to meet at the same node. This problem is known as rendezvous. Agents move in synchronous rounds using a deterministic algorithm. In…

Data Structures and Algorithms · Computer Science 2014-10-07 Avery Miller , Andrzej Pelc

This paper is concerned with the process of risk allocation for a generic multivariate model when the risk measure is chosen as the Value-at-Risk (VaR). We recast the traditional Euler contributions from an expectation conditional on an…

Computational Finance · Quantitative Finance 2022-06-22 Takaaki Koike , Yuri F. Saporito , Rodrigo S. Targino

Consider a set of agents that wish to estimate a vector of parameters of their mutual interest. For this estimation goal, agents can sense and communicate. When sensing, an agent measures (in additive gaussian noise) linear combinations of…

Systems and Control · Computer Science 2019-03-27 António Simões , João Xavier