Related papers: Toward a Risk Assessment Framework for Institution…
Financial systems have a growing reliance on computer-based and distributed systems, making FinTech systems vulnerable to advanced and quickly emerging cyber-criminal threats. Traditional security systems and fixed machine learning systems…
Liquidations in Decentralized Finance (DeFi) are both a blessing and a curse -- whereas liquidations prevent lenders from capital loss, they simultaneously lead to liquidation spirals and system-wide failures. Since most lending and…
Smart contracts led to the emergence of the decentralized finance (DeFi) marketplace within blockchain ecosystems, where diverse participants engage in financial activities. In traditional finance, there are possibilities to create values,…
Artificial intelligence in high-stakes tabular domains cannot be evaluated by predictive performance alone, yet current practice still assesses explainability, fairness, robustness, privacy, and sustainability mostly in isolation. We…
The effectiveness of AI debugging follows a predictable exponential decay pattern; most models lose 60-80% of their debugging capability within just 2-3 attempts, despite iterative debugging being a critical capability for practical code…
Data-Flow Integrity (DFI) is a well-known approach to effectively detecting a wide range of software attacks. However, its real-world application has been quite limited so far because of the prohibitive performance overhead it incurs.…
Calls for new metrics, technical standards and governance mechanisms to guide the adoption of Artificial Intelligence (AI) in institutions and public administration are now commonplace. Yet, most research and policy efforts aimed at…
The increasing sophistication of cyber threats has necessitated the development of advanced detection mechanisms capable of identifying and mitigating ransomware attacks with high precision and efficiency. A novel framework, termed…
The aim of this paper is to study a new methodological framework for systemic risk measures by applying deep learning method as a tool to compute the optimal strategy of capital allocations. Under this new framework, systemic risk measures…
In recent years, the Decentralized Finance (DeFi) market has witnessed numerous attacks on the price oracle, leading to substantial economic losses. Despite the advent of truth discovery methods opening up new avenues for oracle…
The supply chain is a critical segment of the product manufacturing cycle, continuously influenced by risky, uncertain, and undesirable events. Optimizing flexibility in the supply chain presents a complex, multi-objective, and nonlinear…
Scoring the creditworthiness of accounts that interact with decentralized financial (DeFi) protocols remains an important yet unsolved problem. In this paper, we propose a credit scoring system for those accounts that have interacted with…
Decentralized Finance (DeFi), propelled by Blockchain technology, has revolutionized traditional financial systems, improving transparency, reducing costs, and fostering financial inclusion. However, transaction activities in these systems…
For AI technology to fulfill its full promises, we must have effective means to ensure Responsible AI behavior and curtail potential irresponsible use, e.g., in areas of privacy protection, human autonomy, robustness, and prevention of…
The accelerating deployment of artificial intelligence systems across regulated sectors has exposed critical fragmentation in risk assessment methodologies. A significant "language barrier" currently separates technical security teams, who…
AI incident reporting requirements are emerging in regulation and policy, yet no operational criteria exist for determining when a detected AI incident warrants escalation beyond national handling to international coordination. This paper…
The financial industry faces a significant challenge modeling and risk portfolios: balancing the predictability of advanced machine learning models, neural network models, and explainability required by regulatory entities (such as Office…
The rapid adoption of AI systems presents enterprises with a dual challenge: accelerating innovation while ensuring responsible governance. Current AI governance approaches suffer from fragmentation, with risk management frameworks that…
In November, 2011, the Financial Stability Board, in collaboration with the International Monetary Fund, published a list of 29 "systemically important financial institutions" (SIFIs). This designation reflects a concern that the failure of…
Decentralized applications (dApps) in Decentralized Finance (DeFi) face a fundamental tension between regulatory compliance requirements like Know Your Customer (KYC) and maintaining decentralization and privacy. Existing permissioned DeFi…