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arXiv research

A locally-built, LLM-digested index of recent arXiv papers in quant finance, geometry/topology, and statistical ML — keyword search served straight from SQLite on this machine.

168,932 papers · 148 categories

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48 results for Risk Decision Making

Optimal decision-making using prediction sets to minimize risk.

problem Using prediction sets optimally for decision-making in uncertain scenarios.
method Decision-theoretic framework that seeks to minimize expected loss against a worst-case distribution.
result ROCP algorithm reduces critical mistakes compared to baselines, especially in costly out-of-set errors.

PDTS improves robustness in sequential decision-making.

problem Robust active task sampling for efficient and reliable decision-making.
method Characterizes robust active task sampling as a Markov decision process, proposes PDTS method.
result Significantly improves zero-shot and few-shot adaptation robustness.

Develops optimal uncertainty quantification for risk-averse decision makers.

problem Quantifying prediction uncertainty for risk-sensitive domains.
method Decision-theoretic foundations connecting uncertainty quantification with risk-averse decision-making.
result Risk-Averse Calibration (RAC) algorithm provides optimal prediction sets for risk-averse decision makers.

FinHEAR combines LLMs with human expertise for better financial decision-making.

problem Challenges in financial decision-making for language models.
method Multi-agent framework with specialized LLMs for historical analysis, event interpretation, and expert retrieval.
result FinHEAR outperforms baselines in financial tasks with higher accuracy and risk-adjusted returns.

New fairness criterion for risk-sensitive decisions in regulated industries.

problem Ensuring equitable outcomes in risk-sensitive decision-making.
method Marginal fairness for generalized distortion risk measures, two-step decision-making process.
result Ensures fairness in decision-making under risk measures, regardless of protected attributes.

The paper proposes a method to learn and leverage contextual preference distributions for better decision-making.

problem Heterogeneous and context-dependent human preferences in decision-making problems.
method A sequential learning-and-optimization pipeline using a bounded-variance score function gradient estimator to train a predictive model mapping contextual features to preference distributions.
result The approach reduces average post-decision surprise by up to 25 times compared to risk-averse baselines in a ridesharing environment.

Proposes a method to quantify uncertainty in DNN models for discrete inputs.

problem Uncertainty quantification for DNN models with categorical and discrete feature variables.
method Develops a mathematical framework to quantify prediction uncertainty from discrete input noise and model parameters.
result Identifies risk-sensitive cases prone to misclassification due to discrete predictor errors.

We enhance conformal prediction for risk-averse decisions with action-conditional guarantees.

problem Uncertainty quantification and safety guarantees for machine learning decisions.
method Action-conditional conformal prediction, pinball-loss minimization.
result Action-conditional prediction sets optimize risk-averse decision-making.

Paper proposes a new DRL algorithm optimizing Spectral Risk Measures for better risk management.

problem Inconsistencies and conservatism in existing risk measures in DRL.
method Optimizes a broader class of static Spectral Risk Measures (SRM) in DRL.
result Demonstrates improved performance over existing risk-neutral and risk-sensitive DRL models.

The study quantifies decision-making risks from suboptimal classifiers and proposes methods to reduce these risks.

problem Excess risk in decision-making from suboptimal probabilistic classifiers.
method Analytical expressions and upper/lower bounds for excess risk, calibration curve estimation, grouping loss estimator.
result Identifies regimes where recalibration alone or post-training is more effective.

Paper identifies a shared toolkit of strategies for risk management across fields.

problem Uncertainty and risk management in various fields.
method Systematic identification and categorization of 110 strategies.
result RDOT: Risk-reducing Design and Operations Toolkit provides versatile responses to uncertainty.

Develops new methods for risk-aware decision-making in medical bandits.

problem Risk-averse decision-making in medical contexts with limited data.
method Safe, anytime-valid concentration bounds, risk-aware contextual bandits, nonparametric algorithms.
result Improved decision-making algorithms for postoperative patient follow-up.

We address the problem of inverse reinforcement learning in Markov decision processes where the agent is risk-sensitive. In particular, we model risk-sensitivity in a reinforcement learning framework by making use of models of human decision-making having their origins in behavioral psychology, behavioral economics, an…

2017-03-29abs ↗pdf ↗

Paper tackles optimal policy learning with observational data in multi-action scenarios.

problem Optimal policy learning in multi-action settings with observational data.
method Review of estimation approaches, analysis of risk preference, discussion of potential failures.
result Average regret of a policy with multi-valued treatment is contingent on the decision-maker's attitude towards risk.

Paper proposes a risk-aware decision-making framework for real-world sequential decisions.

problem Real-world sequential decision-making problems often have critical constraints that learning solutions often neglect.
method Actor multi-critic architecture with risk characterization.
result Our approach consistently satisfies system constraints with minimal performance toll.

New risk measure and quadrangle improve financial decision-making.

problem Heterogeneous risk assessments among analysts.
method Established analytical characterizations of WGRM and incorporated FRQ into WRQ.
result WGRM and WRQ framework improves risk-adjusted performance and downside resilience.

A framework identifies worst-case decision points in safety-critical scenarios, improving risk assessment by 10 hours.

problem Identifying worst-case outcomes in safety-critical decision-making under uncertainty.
method Explicitly estimating distributions of expected return to identify dead-ends, tuning based on risk tolerance.
result Significantly improves risk assessment, providing indications 10 hours earlier and increasing detection by 20%.

New algorithms optimize decision rules in strategic scenarios, minimizing prediction risk and incentivizing better outcomes.

problem Strategic agents manipulate features to improve outcomes, complicating decision-making models.
method Efficient algorithms for learning decision rules that minimize prediction risk, incentivize better outcomes, and estimate true model coefficients.
result Optimal decision rules can be learned through testing and observing agent responses, circumventing hardness results.

This paper optimizes performative risk by focusing on convex properties and developing efficient algorithms.

problem Performative risk, the loss experienced by decision makers, is not optimized by stable models.
method Identifying convex properties of loss function and model-induced distribution shift, developing algorithms for optimization.
result Optimization of performative risk with better sample efficiency than generic methods.

New concept of partial law invariance connects decision theory and financial risk management.

problem Connecting decision theory and financial risk management under uncertainty.
method Characterizing partially law-invariant coherent risk measures via a novel representation formula.
result Strong partial law invariance bridges the gap between existing risk measure representations.

Elevating houses to flood risk increases uncertainty, leading to higher optimal elevations.

problem Deciding how high to elevate houses to manage riverine flood risks is complex due to uncertainties.
method Used a multi-objective robust decision-making framework to analyze uncertainties.
result Optimal house elevation can be significantly higher than FEMA's recommendation due to deep uncertainties.

Improving cancer treatment decisions requires considering causal effects, not just model accuracy.

problem Cancer outcome prediction models may cause harm when used for treatment decisions.
method Explains the importance of considering causal effects in model validation and provides guidelines.
result Building and validating models that are useful for decision making requires considering causal effects.

The paper addresses sampling bias in risk-based active learning.

problem Sampling bias in active learning leads to poor decision-making performance.
method The paper uses a semi-supervised Gaussian mixture model with an EM algorithm to counteract sampling bias.
result The EM algorithm effectively incorporates pseudo-labels for unlabelled data, reducing sampling bias.

New framework calibrates models to control risk under performativity.

problem Calibrating models to ensure reliable decision-making under performativity.
method Iteratively refined calibration process for different risk measures and tail bounds.
result Statistically rigorous risk control under performativity demonstrated.

Study impacts of feeding cost risk on aquaculture valuation and decision making.

problem Impact of stochastic feeding costs on aquaculture valuation and decision making.
method Using Schwartz-2-factor model and deep neural networks to infer decision boundary.
result Accounting for stochastic feeding costs leads to superior performance in decision rules.

New framework calibrates decision robustness using inverse conformal risk control.

problem Inadequate robustness levels in decision-making due to ad hoc choices.
method Constructs valid estimators to trace miscoverage-regret Pareto frontier.
result Provides distribution-free, finite-sample guarantees on robustness levels.

A green simulation-assisted reinforcement learning method for biomanufacturing.

problem Complexity, high variability, lead time, and limited historical data in biopharmaceutical manufacturing.
method Quantifies model risk, uses posterior distribution, and selectively reuses simulation data.
result Demonstrates promising performance in online learning and decision making.

All people have to make risky decisions in everyday life. And we do not know how true they are. But is it possible to mathematically assess the correctness of our choice? This article discusses the model of decision making under risk on the example of project management. This is a game with two players, one of which is…

2019-01-25abs ↗pdf ↗

The paper analyzes frameworks for integrating sustainability into investment decisions.

problem Understanding how ESG factors influence investment choices.
method Examined and analyzed various theoretical frameworks including Behavioral Finance, Modern Portfolio, and Risk Management.
result Investors increasingly integrate ESG factors to optimize financial outcomes and societal goals.