Network Finance & Risk Cybernetics

doubleperidotAI and Robotics

Nov 30, 2013 (3 years and 9 months ago)

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Network Finance & Risk Cybernetics
Concept / Process / Accreditation
Professor Dr. Lanz Chan, Ph.D.
Network Finance
(e-finance) is the combination of technology and finance. It refers
to the network of service providers that provide internet interface services. It provides
a network of services related to financial institutions, financial markets, regulatory
and other external environmental factors. It includes: electronic money, online
banking, online payment, network security, network insurance, and others.
Risk Cybernetics is risk management, risk specification and
risk control techniques
using advanced human thought processes and computing technologies with
circular-causal volatility-feedback
in a Genetic-Algorithm Neural Network (GANN)
framework.
More generally, Risk Cybernetics refers to risk management techniques which
combine
human and computer capabilities/functions
in a circular causal
network/system. The objective of Risk Cybernetics is to
manage and control all
perceivable risks
to achieve
predictable and sustainable returns
which can be
applied to any industry including market data, financial time series, cyber security
measures, etc.
It is imperative for organizations to
continuously upgrade
their skill sets in risk
management to achieve sound knowledge and practices for
future growth
.
Why Network Finance / Risk Cybernetics Accreditation?
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1.
Set a known or
acceptable ratio
for testing a proportion or a similar statistic.

For eg. the golden ratio estimator may be used.
2.
Set up a group of
explanatory variables
as network inputs.

This may be two or more variables that are sufficient to explain the state of
the network.
3.
Describe a set of
iterative algorithms
for the neural network.

More details provided in the case study.
4.
Construct a
decision-making mapping
procedure so that the network results
in a set of decisions that change with new information.

Example description provided in case study.
5.
Optimization
with any of the various non-linear methods may be utilized to
achieve best results in the most acceptable time frame.

Any of the various software that come with optimization methods may be
used.
6.
Describe clearly and to the fullest extent possible how the different network
states result in
different decisions
which impact the organization in terms of
potential risks and returns.
7.
Calculate different
risk and return measures
to the fullest extent that is
meaningful to you or your organization.
8.
The above process may be repeated with or without all steps.

For a full case study on the financial markets or for a customized solution for
your organization, please contact us.
Cybernetic Network Test Environment Set-up Process
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Understanding fully the risks that your business faces,
managing and controling
these risks
for
predictable and sustainable returns
are the ultimate objectives of
risk cybernetic applications.
Firms increasingly are
exposed to online network transactions
and these
transactions are at risk due to cyber security breaches and other
non-transparent
but perceivable problems
. Firms need to
understand and verify pertinent
processes
that
impact your firm's bottomlines
at every level.
By
clearly identifying
and
defining critical processes
, and by
implementing the
appropriate linkages
of variable inputs to result outputs, your company will be able
to
map the appropriate processes to key decisions
.
Applying risk cybernetics methodology to your firm can help your organization with
improving performance at every level
.
Firms are now deploying
one to two key personnel
from the
audit, accounting or
risk management departments
for the Finamatrix VIP: Network Finance and Risk
Cybernetics Accreditation online program.
Risk Cybernetics
Applications to Organizations
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Cybernetic System: Multi-factor Solutions
5
Quant Risk Trading Application
6
Application: Air-con + Heater Compressor System
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Eco-Green Tech
– Cost risk is reduced for predictable environmental returns
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US Network Credit Lending Case
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China Network Credit Lending Case
10
Virtual Currency Protocol Case
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Dr. Lanz Chan, Ph.D.
Director, Finamatrix.com
Professor, BNUZ International Business Faculty
email: vip @ finamatrix.com
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