Stochastic Distribution Control
Theory-Its Potential Application in
Risk Management in Financial Systems
Hong Wang*
Oak Ridge National Laboratory, Oak Ridge, USA
Introduction


             


          




        

1) 
2) 

          
      




             


       

Crimson Publishers
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*Corresponding author: 
Ridge National Laboratory, Oak Ridge, USA
Submission: 
Published: 
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Copyright@     

   
    
    

1
Strategies in Accounting and Management
ISSN: 2770-6648
Abstract
            
            
             
   

            


Keywords:
2
Strategies Account Manag
Copyright © Hong Wang
SAIM.000585. 4(2).2024
Discussion
Stochastic distribution control
           



         

        

        

         
           



        
    

          
       
          
        

       
          
         

      
 


           

Risk management using SDC
         
 


    

( 1) ( ( ),..., ( ), ( ), ( ))rk f rk rk m uk k
ω
+= −

         
     
   
           


       
            
         
           


         
         
( | ( ),..., ( ), ( ))x rk rk m uk
γ
−

     

{ ( 1) } ( | ( ),..., ( ), ( ))
Prk x rk rk m uk dx
γ
πγ
+∞
+> = −
∫

     


          

1
1( ( ), )
( | ( ),..., ( ), ( )) ( ( ( ), )) | |
df k x
x rk rk m uk f k x
dx
ϕ
γ γω ϕ
−
−
−=

     
         
         
         
       







         
             
           

          
   
 

2
()
0
min [ ( ) ( | ( )]
uk
J y x k dx
δ γϕ
+∞
= −
∫

     
0
() {
0
x
x
Otherwsie
δ
+∞ =
=


         
          




         

()
00
min ( | ( )) log[ ( | ( )] ( | ( ))
uk
J xk xkdx xyxkdx
γϕ γϕ ϕ
+∞ +∞
=−+
∫∫

3
Strategies Account Manag
Copyright © Hong Wang
SAIM.000585. 4(2).2024
Figure 1: The PDF of VaR at sample instant + 1([4]).





Conclusion
        
         
          
          

        
          
    

           
         
      
        
          


References
        

         

           
       

 

 

