Scenario-based requirements elicitation for user-centric explainable AI

Explainable Artificial Intelligence (XAI) develops technical explanation methods and enable interpretability for human stakeholders on why Artificial Intelligence (AI) and machine learning (ML) models provide certain predictions. However, the trust of those stakeholders into AI models and explanations is still an issue, especially domain experts, who are knowledgeable about their domain but not AI inner workings. Social and user-centric XAI research states it is essential to understand the stakeholder’s requirements to provide explanations tailored to their needs, and enhance their trust in working with AI models. Scenario-based design and requirements elicitation can help bridge the gap between social and operational aspects of a stakeholder early before the adoption of information systems and identify its real problem and practices generating user requirements. Nevertheless, it is still rarely explored the adoption of scenarios in XAI, especially in the domain of fraud detection to supporting experts who are about to work with AI models. We demonstrate the usage of scenario-based requirements elicitation for XAI in a fraud detection context, and develop scenarios derived with experts in banking fraud. We discuss how those scenarios can be adopted to identify user or expert requirements for appropriate explanations in his daily operations and to make decisions on reviewing fraudulent cases in banking. The generalizability of the scenarios for further adoption is validated through a systematic literature review in domains of XAI and visual analytics for fraud detection

IMPACT OF OPERATIONAL RISK ON BANK CAPITAL ADEQUACY: EUROPEAN EVIDENCE

The purpose of this thesis is to study the effect of European banks’ operational risk on their capital adequacy. Thesis distinguishes between observed data published by the European Banking Authority and adverse economic conditions compiled in their Stress tests. Thesis utilizes a panel dataset of 666 operational losses reported from 21 European countries between years 2013 and 2018 with a series of explanatory variables to control for events in the economy and financial indicators. Countries are grouped into regions of the European Union to control for different characteristics in the European banking system. Additional tests use econometric techniques and tests for changes in the qualitative insights during the time period chosen. Results conclude that there is not a significant relationship between the level of operational losses and the capital adequacy reported by European banks; heterogeneity of results is also evident among different regions within European banking system. Rather than external risks to bank’s operations, financial indicators such as solvency and liquidity play an important role in the final capital adequacy ratio reported by European banks. Similarly, operational risk is not found to be driving lower capital adequacy ratio under financial distress or worst-case economic conditions. By employing robustness tests and alternative models, these findings are reinforced. Additionally, other risks such as market and credit have more potential to determine capital adequacy systemic shock

Aplicação de técnicas de descoberta do conhecimento em investigações de lavagem de dinheiro.

Lavagem de dinheiro é um método utilizado por criminosos para dar aparência lícita a recursos obtidos de maneira ilícita. Estimativas de entidades mundialmente reconhecidas apontam que tal atividade é responsável por algo entre 2 e 5% do PIB mundial e está se tornando cada vez mais sofisticada. Pela dificuldade de identificação utilizando métodos tradicionais de investigação, a tecnologia tem desempenhado um papel importante nesse processo. Busca-se com este trabalho identificar as técnicas de descoberta do conhecimento aplicadas nas investigações da lavagem de dinheiro, o que foi conseguido através de uma revisão sistemática de literatura. As técnicas encontradas serão utilizadas em uma pesquisa experimental que visa compará-las quanto à eficácia na identificação de relacionamentos em uma rede de transações bancárias provenientes de uma investigação real de lavagem de dinheiro