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As it is known in the finance risk and macroeconomics literature, risk-sharing in large portfolios may increase the probability of creation of default clusters and of systemic risk. We review recent developments on mathematical and…

风险管理 · 定量金融 2015-02-20 Konstantinos Spiliopoulos

Flood risk is correlated in space and time, challenging insurance systems that rely on diversification across assets. Financial instruments governing flood coverage are typically structured as 1 to 5-year contracts, exposing portfolios to…

地球物理 · 物理学 2026-04-16 Adam Nayak , Pierre Gentine , Upmanu Lall

Visualization is an essential operation when assessing the risk of rare events such as coastal or river floodings. The goal is to display a few prototype events that best represent the probability law of the observed phenomenon, a task…

We analyze the limiting behavior of the risk premium associated with the Pareto optimal risk sharing contract in an infinitely expanding pool of risks under a general class of law-invariant risk measures encompassing rank-dependent utility…

风险管理 · 定量金融 2021-07-06 Thomas Knispel , Roger J. A. Laeven , Gregor Svindland

We find the asymptotics of the value function maximizing the expected utility of discounted dividend payments of an insurance company whose reserves are modeled as a classical Cram\'er risk process, with exponentially distributed claims,…

最优化与控制 · 数学 2023-03-22 Sebastian Baran , Corina Constantinescu , Zbigniew Palmowski

Conditional risk minimization arises in high-stakes decisions where risk must be assessed in light of side information, such as stressed economic conditions, specific customer profiles, or other contextual covariates. Constructing reliable…

机器学习 · 统计学 2025-09-30 Xinqiao Xie , Jonathan Yu-Meng Li

When the available statistical information is imperfect, it is dangerous to follow standard optimisation procedures to construct an optimal portfolio, which usually leads to a strong concentration of the weights on very few assets. We…

统计力学 · 物理学 2008-12-02 Jean-Philippe Bouchaud , Marc Potters , Jean-Pierre Aguilar

We model the influence of sharing large exogeneous losses to the reinsurance market by a bipartite graph. Using Pareto-tailed claims and multivariate regular variation we obtain asymptotic results for the Value-at-Risk and the Conditional…

风险管理 · 定量金融 2015-11-16 Oliver Kley , Claudia Kluppelberg , Gesine Reinert

Weather parametric insurance relies on weather indices rather than actual loss assessments, enhancing claims efficiency, reducing moral hazard, and improving fairness. In the context of increasing climate change risks, despite growing…

风险管理 · 定量金融 2024-09-26 Hang Gao , Shuohua Yang , Xinli Liu

We develop a cutting-plane methodology that adjusts solutions to optimization problems so as to reduce features that bring about exposure to risk, such as concentration of assets or resources. The methodology is agnostic to the…

最优化与控制 · 数学 2026-05-28 Daniel Bienstock , Blake Sisson

Numerically computing global policies to optimal control problems for complex dynamical systems is mostly intractable. In consequence, a number of approximation methods have been developed. However, none of the current methods can quantify…

机器人学 · 计算机科学 2021-03-05 Ashwin Khadke , Hartmut Geyer

Major events like natural catastrophes or the COVID-19 crisis have impact both on the financial market and on claim arrival intensities and claim sizes of insurers. Thus, when optimal investment and reinsurance strategies have to be…

投资组合管理 · 定量金融 2025-10-16 Nicole Bäuerle , Gregor Leimcke

Dynamic control is emerging as an effective methodology for operating stormwater systems under stress from rapidly evolving weather patterns. Informed by rainfall predictions and real-time sensor measurements, control assets in the…

机器学习 · 计算机科学 2023-05-31 Abhiram Mullapudi , Branko Kerkez

When working with real-world insurance data, practitioners often encounter challenges during the data preparation stage that can undermine the statistical validity and reliability of downstream modeling. This study illustrates that…

机器学习 · 统计学 2026-03-20 Jiayi Guo , Panyi Dong , Zhiyu Quan

Two-stage risk-averse distributionally robust optimization (DRO) problems are ubiquitous across many engineering and business applications. Despite their promising resilience, two-stage DRO problems are generally computationally…

最优化与控制 · 数学 2024-12-24 Yue Lin , Daniel Zhuoyu Long , Viet Anh Nguyen , Jin Qi

ulticasting is an important communication paradigm for enabling the dissemination of information selectively. This paper considers the problem of optimal secure multicasting in a communication network captured through a graph (optimal is in…

网络与互联网体系结构 · 计算机科学 2011-11-29 G. Rama Murthy

Global pooling is one of the most significant operations in many machine learning models and tasks, which works for information fusion and structured data (like sets and graphs) representation. However, without solid mathematical…

机器学习 · 计算机科学 2022-12-14 Hongteng Xu , Minjie Cheng

An accurate assessment of the risk of extreme environmental events is of great importance for populations, authorities and the banking/insurance/reinsurance industry. Koch (2017) introduced a notion of spatial risk measure and a…

风险管理 · 定量金融 2019-07-01 Erwan Koch

Constant product markets with concentrated liquidity (CL) are the most popular type of automated market makers. In this paper, we characterise the continuous-time wealth dynamics of strategic LPs who dynamically adjust their range of…

数理金融 · 定量金融 2024-06-14 Álvaro Cartea , Fayçal Drissi , Marcello Monga

Network diversity has been widely recognized as an effective defense strategy to mitigate the spread of malware. Optimally diversifying network resources can improve the resilience of a network against malware propagation. This work…

密码学与安全 · 计算机科学 2019-05-17 Tingting Li , Cheng Feng , Chris Hankin