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A novel optimisation framework through quadratic nonlinear projection is introduced for credit portfolio when the portfolio risk is measured by Conditional Value-at-Risk (CVaR). The whole optimisation procedure to search toward the optimal…

Portfolio Management · Quantitative Finance 2016-07-20 Boguk Kim , Chulwoo Han , Frank Chongwoo Park

In economics, insurance and finance, value at risk (VaR) is a widely used measure of the risk of loss on a specific portfolio of financial assets. For a given portfolio, time horizon, and probability $\alpha$, the $100\alpha\%$ VaR is…

Risk Management · Quantitative Finance 2018-03-15 Raúl Torres , Rosa E. Lillo , Henry Laniado

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

Conditional Value-at-Risk (CVaR) is a central tail-risk measure in stochastic structural mechanics, yet its accurate evaluation under high-dimensional, spatially correlated material uncertainty remains computationally prohibitive for…

Machine Learning · Statistics 2026-02-11 Alireza Tabarraei

Given measurements from sensors and a set of standard forces, an optimization based approach to identify weakness in structures is introduced. The key novelty lies in letting the load and measurements to be random variables. Subsequently…

Optimization and Control · Mathematics 2023-11-22 Facundo N. Airaudo , Harbir Antil , Rainald Löhner , Umarkhon Rakhimov

To plan safely in uncertain environments, agents must balance utility with safety constraints. Safe planning problems can be modeled as a chance-constrained partially observable Markov decision process (CC-POMDP) and solutions often use…

Artificial Intelligence · Computer Science 2024-05-02 Robert J. Moss , Arec Jamgochian , Johannes Fischer , Anthony Corso , Mykel J. Kochenderfer

We propose an iterative gradient-based algorithm to efficiently solve the portfolio selection problem with multiple spectral risk constraints. Since the conditional value at risk (CVaR) is a special case of the spectral risk measure, our…

Portfolio Management · Quantitative Finance 2015-03-26 Carlos Abad , Garud Iyengar

In this work, we tackle the problem of minimising the Conditional-Value-at-Risk (CVaR) of output quantities of complex differential models with random input data, using gradient-based approaches in combination with the Multi-Level Monte…

Numerical Analysis · Mathematics 2023-10-16 Sundar Ganesh , Fabio Nobile

Microgrid operation is highly vulnerable to short-term load uncertainty, while conventional predict-then-optimize pipelines cannot fully align probabilistic forecasting quality with downstream robust scheduling performance. This paper…

Systems and Control · Electrical Eng. & Systems 2026-04-21 Tingwei Cao , Yan Xu

Motivated by the prominence of Conditional Value-at-Risk (CVaR) as a measure for tail risk in settings affected by uncertainty, we develop a new formula for approximating CVaR based optimization objectives and their gradients from limited…

Methodology · Statistics 2020-08-25 Anand Deo , Karthyek Murthy

We develop a novel multivariate semi-parametric framework for joint portfolio Value-at-Risk (VaR) and Expected Shortfall (ES) forecasting. Unlike existing univariate semi-parametric approaches, the proposed framework explicitly models the…

Risk Management · Quantitative Finance 2024-12-23 Giuseppe Storti , Chao Wang

Options are generally learned by using an inaccurate environment model (or simulator), which contains uncertain model parameters. While there are several methods to learn options that are robust against the uncertainty of model parameters,…

Machine Learning · Computer Science 2019-11-01 Takuya Hiraoka , Takahisa Imagawa , Tatsuya Mori , Takashi Onishi , Yoshimasa Tsuruoka

In several real-world applications involving decision making under uncertainty, the traditional expected value objective may not be suitable, as it may be necessary to control losses in the case of a rare but extreme event. Conditional…

Machine Learning · Computer Science 2018-08-07 Ravi Kumar Kolla , Prashanth L. A. , Sanjay P. Bhat , Krishna Jagannathan

This paper concerns sequential computation of risk measures for financial data and asks how, given a risk measurement procedure, we can tell whether the answers it produces are `correct'. We draw the distinction between `external' and…

Risk Management · Quantitative Finance 2015-11-20 Mark H. A. Davis

We study a discrete-time multi-period portfolio optimization problem under an explicit constraint on the Deviation Conditional Value-at-Risk (DCVaR), defined as the excess of Conditional Value-at-Risk over expected terminal wealth. The…

Portfolio Management · Quantitative Finance 2026-04-17 Jérôme Lelong , Véronique Maume-Deschamps , William Thevenot

We consider continuous-time stochastic optimal control problems featuring Conditional Value-at-Risk (CVaR) in the objective. The major difficulty in these problems arises from time-inconsistency, which prevents us from directly using…

Optimization and Control · Mathematics 2020-05-27 Christopher W. Miller , Insoon Yang

Autonomous agents that operate in the real world must often deal with partial observability, which is commonly modeled as partially observable Markov decision processes (POMDPs). However, traditional POMDP models rely on the assumption of…

Artificial Intelligence · Computer Science 2023-08-03 Moran Barenboim , Idan Lev-Yehudi , Vadim Indelman

Swarm robotics has garnered significant attention due to its ability to accomplish elaborate and synchronized tasks. Existing methodologies for motion planning of swarm robotic systems mainly encounter difficulties in scalability and safety…

Robotics · Computer Science 2024-08-29 Xuru Yang , Yunze Hu , Han Gao , Kang Ding , Zhaoyang Li , Pingping Zhu , Ying Sun , Chang Liu

Approximate dynamic programming (ADP) faces challenges in dealing with constraints in control problems. Model predictive control (MPC) is, in comparison, well-known for its accommodation of constraints and stability guarantees, although its…

Systems and Control · Electrical Eng. & Systems 2023-04-10 Kanghui He , Shengling Shi , Ton van den Boom , Bart De Schutter

We propose a novel approach for analyzing dynamic regret of first-order constrained online convex optimization algorithms for strongly convex and Lipschitz-smooth objectives. Crucially, we provide a general analysis that is applicable to a…

Optimization and Control · Mathematics 2025-08-22 Fabian Jakob , Andrea Iannelli
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