Automated multi-level governance compliance checking

An institution typically comprises constitutive rules, which give shape and meaning to social interactions and regulative rules, which prescribe agent behaviour in the society. Regulative rules guide social interaction, in particular when they are coupled with reward and punishment regulations that are enforced for (non-)compliance. Institution examples include legislation and contracts. Formal institutional reasoning frameworks automate ascribing social meaning to agent interaction and determining whether those actions have social meanings that comprise (non-)compliant behaviour. Yet, institutions do not just govern societies. Rather, in what is called multi-level governance, institutional designs at lower governance levels (e.g., national legislation at the national level) are governed by higher level institutions (e.g., directives, human rights charters and supranational agreements). When an institution design is found to be non-compliant, punishments can be issued by annulling the legislation or imposing fines on the responsible designers (i.e., government). In order to enforce multi-level governance, higher governance levels (e.g., courts applying human rights) must check lower level institution designs (e.g., national legislation) for compliance; in order to avoid punishment, lower governance levels (e.g., national governments) must check their institution designs are compliant with higher-level institutions before enactment. However, checking non-compliance of institution designs in multi-level governance is non-trivial. In particular, because institutions in multi-level governance operate at different levels of abstraction. Lower level institutions govern with concrete regulations whilst higher level institutions typically comprise increasingly vague and abstract regulations. To address this issue, in this paper we propose a formal framework with a novel semantics that defines compliance between concrete lower level institutions and abstract higher level institutions. The formal framework is complemented by a sound and complete computational framework that automates compliance checking, which we apply to a real-world case study

Designing Normative Theories for Ethical and Legal Reasoning: LogiKEy Framework, Methodology, and Tool Support

A framework and methodology---termed LogiKEy---for the design and engineering of ethical reasoners, normative theories and deontic logics is presented. The overall motivation is the development of suitable means for the control and governance of intelligent autonomous systems. LogiKEy's unifying formal framework is based on semantical embeddings of deontic logics, logic combinations and ethico-legal domain theories in expressive classic higher-order logic (HOL). This meta-logical approach enables the provision of powerful tool support in LogiKEy: off-the-shelf theorem provers and model finders for HOL are assisting the LogiKEy designer of ethical intelligent agents to flexibly experiment with underlying logics and their combinations, with ethico-legal domain theories, and with concrete examples---all at the same time. Continuous improvements of these off-the-shelf provers, without further ado, leverage the reasoning performance in LogiKEy. Case studies, in which the LogiKEy framework and methodology has been applied and tested, give evidence that HOL's undecidability often does not hinder efficient experimentation.Comment: 50 pages; 10 figure

Dialectic tensions in the financial markets: a longitudinal study of pre- and post-crisis regulatory technology

This article presents the findings from a longitudinal research study on regulatory technology in the UK financial services industry. The financial crisis with serious corporate and mutual fund scandals raised the profile of compliance as governmental bodies, institutional and private investors introduced a ‘tsunami’ of financial regulations. Adopting a multi-level analysis, this study examines how regulatory technology was used by financial firms to meet their compliance obligations, pre- and post-crisis. Empirical data collected over 12 years examine the deployment of an investment management system in eight financial firms. Interviews with public regulatory bodies, financial institutions and technology providers reveal a culture of compliance with increased transparency, surveillance and accountability. Findings show that dialectic tensions arise as the pursuit of transparency, surveillance and accountability in compliance mandates is simultaneously rationalized, facilitated and obscured by regulatory technology. Responding to these challenges, regulatory bodies continue to impose revised compliance mandates on financial firms to force them to adapt their financial technologies in an ever-changing multi-jurisdictional regulatory landscape

Cloud service localisation

The essence of cloud computing is the provision of software and hardware services to a range of users in dierent locations. The aim of cloud service localisation is to facilitate the internationalisation and localisation of cloud services by allowing their adaption to dierent locales. We address the lingual localisation by providing service-level language translation techniques to adopt services to dierent languages and regulatory localisation by providing standards-based mappings to achieve regulatory compliance with regionally varying laws, standards and regulations. The aim is to support and enforce the explicit modelling of aspects particularly relevant to localisation and runtime support consisting of tools and middleware services to automating the deployment based on models of locales, driven by the two localisation dimensions. We focus here on an ontology-based conceptual information model that integrates locale specication in a coherent way

Automated Sustainability Compliance Checking Using Process Mining and Formal Logic

Business processes need to have certain constraints such that they can lead to sustainable outcomes. These constraints can be manifold and their adherence has to be monitored. In the past compliance checking has been applied in several business domains without considering certain sustainability aspects, such as multi-dimensionality and impact level. With my research I want to contribute to the application of compliance checking techniques for the purpose of sustainability compliance. In order to achieve this, I want to analyse and develop data-driven approaches, which allow to automate the task of compliance checking. The way in which this can be achieved, is be combining methods from process mining with formal languages that can express sustainability rules in a machine-readable manner. The main goal is to develop a compliance engine that can be adapted by ERP systems in order to evaluate sustainability conformance in business processes

Legal compliance by design (LCbD) and through design (LCtD) : preliminary survey

1st Workshop on Technologies for Regulatory Compliance co-located with the 30th International Conference on Legal Knowledge and Information Systems (JURIX 2017). The purpose of this paper is twofold: (i) carrying out a preliminary survey of the literature and research projects on Compliance by Design (CbD); and (ii) clarifying the double process of (a) extending business managing techniques to other regulatory fields, and (b) converging trends in legal theory, legal technology and Artificial Intelligence. The paper highlights the connections and differences we found across different domains and proposals. We distinguish three different policydriven types of CbD: (i) business, (ii) regulatory, (iii) and legal. The recent deployment of ethical views, and the implementation of general principles of privacy and data protection lead to the conclusion that, in order to appropriately define legal compliance, Compliance through Design (CtD) should be differentiated from CbD

Strengthening governance of social safety nets in East Asia

Several East Asian countries, in the aftermath of the global financial crisis, are considering an expansion of their social safety net programs. In many cases, existing delivery mechanisms for social assistance in the region tend to be basic, in line with the small size of programs. In a context of coverage expansion and proliferation of new programs, the risk of creating increasingly complex systems characterized by cross-incentives is high. Lack of coordination, ambiguous criteria for identifying and selecting beneficiaries, low administrative capacity, lack of transparency and limited beneficiary participation pose risks for program effectiveness and can decrease accountability. Good governance can improve program outcomes through effective program coordination, stronger accountability arrangements, provider incentives and greater transparency and participation. This paper proposes an analytical framework to systematically identify governance risks and constraints which, if removed, could improve the outcomes of modern social assistance programs.Health Monitoring&Evaluation,Safety Nets and Transfers,National Governance,Governance Indicators,Poverty Monitoring&Analysis