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TITLE: Fundamental Relations in Risk Management: Theory and Case Studies
SPEAKER: Stan Uryasev
ABSTRACT:
The paper defines fundamental quantities in uncertainty management: 1) Errors, 2) Risks, 3) Deviations, and 4) Regrets. We discuss relations between these quantities in axiomatic format.
We demonstrate several optimization case studies: regression problems with various error measures; portfolio optimization, sparse reconstruction, and optimal structuring of CDO. The case studies are conducted with Portfolio Safeguard by AORDA and IBM CPLEX.