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Currently the Dempster-Shafer based algorithm and Uniform Random Probability based algorithm are the preferred method of resolving security games, in which defenders are able to identify attackers and only strategy remained ambiguous.…

Artificial Intelligence · Computer Science 2015-08-11 Hossein Khani , Mohsen Afsharchi

The ongoing concern about systemic risk since the outburst of the global financial crisis has highlighted the need for risk measures at the level of sets of interconnected financial components, such as portfolios, institutions or members of…

Risk Management · Quantitative Finance 2017-03-24 Yannick Armenti , Stephane Crepey , Samuel Drapeau , Antonis Papapantoleon

The geology of oil reservoirs is largely unknown. Consequently, the reservoir models used for production optimization are subject to significant uncertainty. To minimize the associated risk, the oil literature has mainly used ensemble-based…

Optimization and Control · Mathematics 2018-01-03 Andrea Capolei , Lasse Hjuler Christiansen , John Bagterp Jørgensen

In cybersecurity, attackers range from brash, unsophisticated script kiddies and cybercriminals to stealthy, patient advanced persistent threats. When modeling these attackers, we can observe that they demonstrate different risk-seeking and…

Cryptography and Security · Computer Science 2021-09-27 Erick Galinkin , John Carter , Spiros Mancoridis

Value-at-Risk (VaR) is one of the main regulatory tools used for risk management purposes. However, it is difficult to compute optimal VaR portfolios; that is, an optimal risk-reward portfolio allocation using VaR as the risk measure. This…

Portfolio Management · Quantitative Finance 2021-07-16 Onur Babat , Juan C. Vera , Luis F. Zuluaga

We consider the problem of risk-sensitive motion planning in the presence of randomly moving obstacles. To this end, we adopt a model predictive control (MPC) scheme and pose the obstacle avoidance constraint in the MPC problem as a…

Systems and Control · Electrical Eng. & Systems 2021-07-20 Anushri Dixit , Mohamadreza Ahmadi , Joel W. Burdick

Selecting the combination of security controls that will most effectively protect a system's assets is a difficult task. If the wrong controls are selected, the system may be left vulnerable to cyber-attacks that can impact the…

Cryptography and Security · Computer Science 2024-10-31 Dylan Léveillé , Jason Jaskolka

Risk measures are important key figures to measure the adequacy of the reserves of a company. The most common risk measures in practice are Value-at-Risk (VaR) and Conditional Value-at-Risk (CVaR). Recently, quantum-based algorithms are…

Quantum Physics · Physics 2025-01-29 Christian Laudagé , Ivica Turkalj

Security Games employ game theoretical tools to derive resource allocation strategies in security domains. Recent works considered the presence of alarm systems, even suffering various forms of uncertainty, and showed that disregarding…

Artificial Intelligence · Computer Science 2016-06-08 Nicola Basilico , Giuseppe De Nittis , Nicola Gatti

Considering non-stationary environments in online optimization enables decision-maker to effectively adapt to changes and improve its performance over time. In such cases, it is favorable to adopt a strategy that minimizes the negative…

Systems and Control · Electrical Eng. & Systems 2024-04-05 Siyi Wang , Zifan Wang , Xinlei Yi , Michael M. Zavlanos , Karl H. Johansson , Sandra Hirche

This paper is devoted to study the effects arising from imposing a value-at-risk (VaR) constraint in mean-variance portfolio selection problem for an investor who receives a stochastic cash flow which he/she must then invest in a…

Portfolio Management · Quantitative Finance 2010-11-24 Jun Ye , Tiantian Li

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

We propose methods to solve time-varying, sensor and actuator (SaA) selection problems for uncertain cyber-physical systems. We show that many SaA selection problems for optimizing a variety of control and estimation metrics can be posed as…

Optimization and Control · Mathematics 2018-07-26 Ahmad F. Taha , Nikolaos Gatsis , Tyler Summers , Sebastian Nugroho

In this letter, we consider a distributed submodular maximization problem for multi-robot systems when attacked by adversaries. One of the major challenges for multi-robot systems is to increase resilience against failures or attacks. This…

Robotics · Computer Science 2021-11-19 Jun Liu , Lifeng Zhou , Pratap Tokekar , Ryan K. Williams

This paper studies the problem of optimally allocating a cash injection into a financial system in distress. Given a one-period borrower-lender network in which all debts are due at the same time and have the same seniority, we address the…

Risk Management · Quantitative Finance 2014-12-18 Zhang Li , Xiaojun Lin , Borja Peleato-Inarrea , Ilya Pollak

In this paper we develop a novel methodology for estimation of risk capital allocation. The methodology is rooted in the theory of risk measures. We work within a general, but tractable class of law-invariant coherent risk measures, with a…

Risk Management · Quantitative Finance 2019-11-25 Tomasz R. Bielecki , Igor Cialenco , Marcin Pitera , Thorsten Schmidt

Optimization is instrumental for improving operations of large-scale socio-technical infrastructures of Smart Cities, for instance, energy and traffic systems. In particular, understanding the performance of multi-agent discrete-choice…

Multiagent Systems · Computer Science 2025-06-06 Amal Aldawsari , Evangelos Pournaras

CVaR (Conditional Value at Risk) is a risk metric widely used in finance. However, dynamically optimizing CVaR is difficult since it is not a standard Markov decision process (MDP) and the principle of dynamic programming fails. In this…

Optimization and Control · Mathematics 2022-10-18 Li Xia , Peter W. Glynn

Real-world applications require RL algorithms to act safely. During learning process, it is likely that the agent executes sub-optimal actions that may lead to unsafe/poor states of the system. Exploration is particularly brittle in…

Machine Learning · Statistics 2019-06-17 Elena Smirnova , Elvis Dohmatob , Jérémie Mary

Learning models capable of providing reliable predictions in the face of adversarial actions has become a central focus of the machine learning community in recent years. This challenge arises from observing that data encountered at…

Machine Learning · Computer Science 2025-05-05 Marco C. Campi , Algo Carè , Luis G. Crespo , Simone Garatti , Federico A. Ramponi
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