This Article 
   
 Share 
   
 Bibliographic References 
   
 Add to: 
 
Digg
Furl
Spurl
Blink
Simpy
Google
Del.icio.us
Y!MyWeb
 
 Search 
   
Toward the Notion of a Knowledge Repository for Financial Risk Management
January-February 1997 (vol. 9 no. 1)
pp. 161-167

Abstract—An approach for designing a knowledge repository for risk management is presented. Since varied representations are used to capture the diverse types of knowledge involved in this domain, the atomic knowledge units stored in the repository are considered to be domain model (K) and inference method (M) pairs, (K, M) pairs, which address subtasks in the domain. Such (K, M) pairs are semantically uniform. Conceptually, this allows to view the repository as though it were a shared "database" of (K, M) pairs that has two key features. It serves stand-alone systems by enabling them to apply stored (K, M) pairs and share the generated results, where the applied pairs can be associated with any subtask that is part of entire application tasks. Additionally, it avoids capturing redundant subtask-specific Ks to the extent possible by dynamically deriving them from deep principled Ks it stores.

[1] E. Baecher and S. Goodman, The Goldman Sachs Guide to Hedging Corporate Debt Issuance. Financial Strategies Group, Goldman Sachs, 1988.
[2] R. Bauer and G. Liepins, "Genetic Algorithms and Computerized Trading Strategies," Expert Systems in Finance, D. O'Leary and P. Watkins, eds. New York: Elsevier Science Publishers, 1992.
[3] M. Benaroch and V. Dhar, "On the Scope of Reasoning with Financial Knowledge: An Analysis for the Investment Domain," J. Organizational Computing, to appear.
[4] M. Benaroch and V. Dhar, "Controlling the Complexity of Investment Decisions Using Qualitative Reasoning Techniques," Decision Support Systems, vol. 15, pp. 115-131, Dec. 1995.
[5] A. Björnerstedt and C. Hultén, "Version Control in an Object-Oriented Architecture," Object-Oriented Concepts, Databases, and Applications, W. Kim and F. Lochovsky, eds. New York: ACM Press, 1989.
[6] R. Brendsen and H. Daniels, "Causal Reasoning and Explanation in Dynamic Economic Systems," J. Economic Dynamics and Control, vol. 18, pp. 251-271, June 1994.
[7] W. Clancey, "Model Construction Operators," Artificial Intelligence, vol. 53, pp. 1-115, Jan. 1992.
[8] P. Gray, "Knowledge Reuse through Networks of Large KBS," Directions in Databases, D. Bowers, ed. Berlin: Springer-Verlag, 1994.
[9] T. Gruber, "The Role of Standard Knowledge Representation for Sharing Knowledge-Based Technology," Technical Report KSL-90-53, Knowledge Systems Laboratory, Stanford Univ., Stanford, Calif., 1990.
[10] R.V. Guha and D.B. Lenat, "Enabling Agents to Work Together," Comm. ACM, vol. 37, no. 7, pp. 127-142, July 1994.
[11] C. Lassez, K. McAloon, and R. Yap, "Constraint Logic Programming and Option Trading," IEEE Expert, vol. 2, 1987.
[12] J. Lee, H. Kim, and S. Chu, "Intelligent Stock Portfolio Management System," Expert Systems, vol. 6, pp. 74-86, 1989.
[13] W. Messier and J. Hensen, "Inducing Rules for Expert System Development: An Example Using Default and Bankruptcy Data," Management Science, vol. 34, pp. 1-13, Dec. 1988.
[14] M. Musen, "Dimensions of Knowledge Sharing and Reuse," Computer and Biomedical Research, vol. 25, pp. 435-467, July 1992.
[15] R. Neches et al., "Enabling Technology for Knowledge Sharing," AI Magazine, Fall 1991, pp. 36-56.
[16] D. Schwartz, L. Sterling, and E. Mayland, "FLiPSide Blackboard: A Financial Logic Programming System for Distributed Expertise," Proc. First Int'l Conf. AI Application on Wall Street, 1991.
[17] C. Smith, C. Smithson, and D. Wilford, Managing Financial Risk. HarperBusiness Publishing, 1990.
[18] E. Sorensen, "Constructing Portfolios with Equity Valuation," Portfolio and Investment Management, F. Fabozzi, ed. Chicago: Probus Publishing Company, 1989.
[19] S. Zenios, Financial Optimization.Boston: Cambridge Univ. Press, 1993.

Index Terms:
Financial application, knowledge-based system, knowledge repository, knowledge reuse, knowledge sharing, risk management.
Citation:
Michel Benaroch, "Toward the Notion of a Knowledge Repository for Financial Risk Management," IEEE Transactions on Knowledge and Data Engineering, vol. 9, no. 1, pp. 161-167, Jan.-Feb. 1997, doi:10.1109/69.567058
Usage of this product signifies your acceptance of the Terms of Use.