Machine Learning-Based Elastic Cloud Resource Provisioning in the Solvency II Framework

The Solvency II Directive (Directive 2009/138/EC) is a European Directive issued in November 2009 and effective from January 2016, which has been enacted by the European Union to regulate the insurance and reinsurance sector through the discipline of risk management. Solvency II requires European insurance companies to conduct consistent evaluation and continuous monitoring of risks—a process which is computationally complex and extremely resource-intensive. To this end, companies are required to equip themselves with adequate IT infrastructures, facing a significant outlay. In this paper we present the design and the development of a Machine Learning-based approach to transparently deploy on a cloud environment the most resource-intensive portion of the Solvency II-related computation. Our proposal targets DISAR®, a Solvency II-oriented system initially designed to work on a grid of conventional computers. We show how our solution allows to reduce the overall expenses associated with the computation, without hampering the privacy of the companies’ data (making it suitable for conventional public cloud environments), and allowing to meet the strict temporal requirements required by the Directive. Additionally, the system is organized as a self-optimizing loop, which allows to use information gathered from actual (useful) computations, thus requiring a shorter training phase. We present an experimental study conducted on Amazon EC2 to assess the validity and the efficiency of our proposal

Big Data and the Internet of Things

Advances in sensing and computing capabilities are making it possible to embed increasing computing power in small devices. This has enabled the sensing devices not just to passively capture data at very high resolution but also to take sophisticated actions in response. Combined with advances in communication, this is resulting in an ecosystem of highly interconnected devices referred to as the Internet of Things - IoT. In conjunction, the advances in machine learning have allowed building models on this ever increasing amounts of data. Consequently, devices all the way from heavy assets such as aircraft engines to wearables such as health monitors can all now not only generate massive amounts of data but can draw back on aggregate analytics to "improve" their performance over time. Big data analytics has been identified as a key enabler for the IoT. In this chapter, we discuss various avenues of the IoT where big data analytics either is already making a significant impact or is on the cusp of doing so. We also discuss social implications and areas of concern.Comment: 33 pages. draft of upcoming book chapter in Japkowicz and Stefanowski (eds.) Big Data Analysis: New algorithms for a new society, Springer Series on Studies in Big Data, to appea

The development of a rich multimedia training environment for crisis management: using emotional affect to enhance learning

PANDORA is an EU FP7-funded project developing a novel training and learning environment for Gold Commanders, individuals who carry executive responsibility for the services and facilities identified as strategically critical e.g. Police, Fire, in crisis management strategic planning situations. A key part of the work for this project is considering the emotional and behavioural state of the trainees, and the creation of more realistic, and thereby stressful, representations of multimedia information to impact on the decision-making of those trainees. Existing training models are predominantly paper-based, table-top exercises, which require an exercise of imagination on the part of the trainees to consider not only the various aspects of a crisis situation but also the impacts of interventions, and remediating actions in the event of the failure of an intervention. However, existing computing models and tools are focused on supporting tactical and operational activities in crisis management, not strategic. Therefore, the PANDORA system will provide a rich multimedia information environment, to provide trainees with the detailed information they require to develop strategic plans to deal with a crisis scenario, and will then provide information on the impacts of the implementation of those plans and provide the opportunity for the trainees to revise and remediate those plans. Since this activity is invariably multi-agency, the training environment must support group-based strategic planning activities and trainees will occupy specific roles within the crisis scenario. The system will also provide a range of non-playing characters (NPC) representing domain experts, high-level controllers (e.g. politicians, ministers), low-level controllers (tactical and operational commanders), and missing trainee roles, to ensure a fully populated scenario can be realised in each instantiation. Within the environment, the emotional and behavioural state of the trainees will be monitored, and interventions, in the form of environmental information controls and mechanisms impacting on the stress levels and decisionmaking capabilities of the trainees, will be used to personalise the training environment. This approach enables a richer and more realistic representation of the crisis scenario to be enacted, leading to better strategic plans and providing trainees with structured feedback on their performance under stress