The role of rules-based compliance systems in the new EU regulatory landscape: perspectives of institutional change and agency

The financial crisis of 2007-2009 and the subsequent reaction of the G20 have created a new global regulatory landscape. Within the EU, change of regulatory institutions is ongoing. The research objective of this study is to understand how institutional changes to the EU regulatory landscape may affect corresponding institutionalized operational practices within financial organizations and to understand the role of agency within this process. Our motivation is to provide insight into these changes from an operational management perspective, as well as to test Thelen and Mahoney?s (2010) modes of institutional change. Consequently, the study researched implementations of an Investment Management System with a rules-based compliance module within financial organizations. The research consulted compliance and risk managers, as well as systems experts. The study suggests that prescriptive regulations are likely to create isomorphic configurations of rules-based compliance systems, which consequently will enable the institutionalization of associated compliance practices. The study reveals the ability of some agents within financial organizations to control the impact of regulatory institutions, not directly, but through the systems and processes they adopt to meet requirements. Furthermore, the research highlights the boundaries and relationships between each mode of change as future avenues of research.

Previsão em tempo atual de cheias com uso de sistema especialista difuso

Sistemas de previsão de cheias podem ser adequadamente utilizados quando o alcance é suficiente, em comparação com o tempo necessário para ações preventivas ou corretivas. Além disso, são fundamentalmente importantes a confiabilidade e a precisão das previsões. Previsões de níveis de inundação são sempre aproximações, e intervalos de confiança não são sempre aplicáveis, especialmente com graus de incerteza altos, o que produz intervalos de confiança muito grandes. Estes intervalos são problemáticos, em presença de níveis fluviais muito altos ou muito baixos. Neste estudo, previsões de níveis de cheia são efetuadas, tanto na forma numérica tradicional quanto na forma de categorias, para as quais utiliza-se um sistema especialista baseado em regras e inferências difusas. Metodologias e procedimentos computacionais para aprendizado, simulação e consulta são idealizados, e então desenvolvidos sob forma de um aplicativo (SELF – Sistema Especialista com uso de Lógica “Fuzzy”), com objetivo de pesquisa e operação. As comparações, com base nos aspectos de utilização para a previsão, de sistemas especialistas difusos e modelos empíricos lineares, revelam forte analogia, apesar das diferenças teóricas fundamentais existentes. As metodologias são aplicadas para previsão na bacia do rio Camaquã (15543 km2), para alcances entre 10 e 48 horas. Dificuldades práticas à aplicação são identificadas, resultando em soluções as quais constituem-se em avanços do conhecimento e da técnica. Previsões, tanto na forma numérica quanto categorizada são executadas com sucesso, com uso dos novos recursos. As avaliações e comparações das previsões são feitas utilizandose um novo grupo de estatísticas, derivadas das freqüências simultâneas de ocorrência de valores observados e preditos na mesma categoria, durante a simulação. Os efeitos da variação da densidade da rede são analisados, verificando-se que sistemas de previsão pluvio-hidrométrica em tempo atual são possíveis, mesmo com pequeno número de postos de aquisição de dados de chuva, para previsões sob forma de categorias difusas.

Estudo de estratégias de otimização para poços de petróleo com elevação por bombeio de cavidades progressivas

The progressing cavity pump artificial lift system, PCP, is a main lift system used in oil production industry. As this artificial lift application grows the knowledge of it s dynamics behavior, the application of automatic control and the developing of equipment selection design specialist systems are more useful. This work presents tools for dynamic analysis, control technics and a specialist system for selecting lift equipments for this artificial lift technology. The PCP artificial lift system consists of a progressing cavity pump installed downhole in the production tubing edge. The pump consists of two parts, a stator and a rotor, and is set in motion by the rotation of the rotor transmitted through a rod string installed in the tubing. The surface equipment generates and transmits the rotation to the rod string. First, is presented the developing of a complete mathematical dynamic model of PCP system. This model is simplified for use in several conditions, including steady state for sizing PCP equipments, like pump, rod string and drive head. This model is used to implement a computer simulator able to help in system analysis and to operates as a well with a controller and allows testing and developing of control algorithms. The next developing applies control technics to PCP system to optimize pumping velocity to achieve productivity and durability of downhole components. The mathematical model is linearized to apply conventional control technics including observability and controllability of the system and develop design rules for PI controller. Stability conditions are stated for operation point of the system. A fuzzy rule-based control system are developed from a PI controller using a inference machine based on Mandami operators. The fuzzy logic is applied to develop a specialist system that selects PCP equipments too. The developed technics to simulate and the linearized model was used in an actual well where a control system is installed. This control system consists of a pump intake pressure sensor, an industrial controller and a variable speed drive. The PI control was applied and fuzzy controller was applied to optimize simulated and actual well operation and the results was compared. The simulated and actual open loop response was compared to validate simulation. A case study was accomplished to validate equipment selection specialist system

Software architecture for web-based project management system

This article presents software architecture for a web-based system to aid project managing, conceptually founded on guidelines of the Project Management Body of Knowledge (PMBoK) and on ISO/IEC 9126, as well as on the result of an empiric study done in Brazil. Based on these guidelines, this study focused on two different points of view about project management: the view of those who develop software systems to aid management and the view of those who use these systems. The designed software architecture is capable of guiding an incremental development of a quality system that will satisfy today's marketing necessities, principally those of small and medium size enterprises.

Evaluating a Speech Communication System for deaf people

This paper describes the development of an Advanced Speech Communication System for Deaf People and its field evaluation in a real application domain: the renewal of Driver’s License. The system is composed of two modules. The first one is a Spanish into Spanish Sign Language (LSE: Lengua de Signos Española) translation module made up of a speech recognizer, a natural language translator (for converting a word sequence into a sequence of signs), and a 3D avatar animation module (for playing back the signs). The second module is a Spoken Spanish generator from sign-writing composed of a visual interface (for specifying a sequence of signs), a language translator (for generating the sequence of words in Spanish), and finally, a text to speech converter. For language translation, the system integrates three technologies: an example-based strategy, a rule-based translation method and a statistical translator. This paper also includes a detailed description of the evaluation carried out in the Local Traffic Office in the city of Toledo (Spain) involving real government employees and deaf people. This evaluation includes objective measurements from the system and subjective information from questionnaires. Finally, the paper reports an analysis of the main problems and a discussion about possible solutions.

An overview of the ciao system

Ciao is a logic-based, multi-paradigm programming system. One of its most distinguishing features is that it supports a large number of semantic and syntactic language features which can be selectively activated or deactivated for each program module. As a result, a module can be written in, for example, ISO-Prolog plus constraints and higher order, while another can be a puré logic module with a different control rule such as iterative deepening and/or tabling, and perhaps using constructive negation. A powerful and modular extensión mechanism allows user-level design and implementation of such features and sub-languages. Another distinguishing feature of Ciao is its powerful assertion language, which allows expressing many kinds of program properties (ranging from, e.g., moded types to resource consumption), as well as tests and documentation. The compiler is capable of statically ñnding violations of these properties or verifying that programs comply with them, and issuing certiñcates of this compliance. The compiler also performs many types of optimizations, including automatic parallelization. It offers very competitive performance, while retaining the flexibility and interactive development of a dynamic language. We will present a hands-on overview of the system, through small examples which emphasize the novel aspects and the motivations which lie behind Ciao's design and implementation.

Design, development and field evaluation of a Spanish into sign language translation system

This paper describes the design, development and field evaluation of a machine translation system from Spanish to Spanish Sign Language (LSE: Lengua de Signos Española). The developed system focuses on helping Deaf people when they want to renew their Driver’s License. The system is made up of a speech recognizer (for decoding the spoken utterance into a word sequence), a natural language translator (for converting a word sequence into a sequence of signs belonging to the sign language), and a 3D avatar animation module (for playing back the signs). For the natural language translator, three technological approaches have been implemented and evaluated: an example-based strategy, a rule-based translation method and a statistical translator. For the final version, the implemented language translator combines all the alternatives into a hierarchical structure. This paper includes a detailed description of the field evaluation. This evaluation was carried out in the Local Traffic Office in Toledo involving real government employees and Deaf people. The evaluation includes objective measurements from the system and subjective information from questionnaires. The paper details the main problems found and a discussion on how to solve them (some of them specific for LSE).

Towards a lightweight mobile semantic-based approach for enhancing interaction with smart objects

This work describes a semantic extension for a user-smart object interaction model based on the ECA paradigm (Event-Condition-Action). In this approach, smart objects publish their sensing (event) and action capabilities in the cloud and mobile devices are prepared to retrieve them and act as mediators to configure personalized behaviours for the objects. In this paper, the information handled by this interaction system has been shaped according several semantic models that, together with the integration of an embedded ontological and rule-based reasoner, are exploited in order to (i) automatically detect incompatible ECA rules configurations and to (ii) support complex ECA rules definitions and execution. This semantic extension may significantly improve the management of smart spaces populated with numerous smart objects from mobile personal devices, as it facilitates the configuration of coherent ECA rules.

Mejora postpradial de un controlador basado en reglas

La Diabetes mellitus es una enfermedad caracterizada por la insuficiente o nula producción de insulina por parte del páncreas o la reducida sensibilidad del organismo a esta hormona, que ayuda a que la glucosa llegue a los tejidos y al sistema nervioso para suministrar energía. La Diabetes tiene una mayor prevalencia en los países desarrollados debido a múltiples factores, entre ellos la obesidad, la vida sedentaria, y disfunciones en el sistema endocrino relacionadas con el páncreas. La Diabetes Tipo 1 es una enfermedad crónica e incurable, en la que son destruidas las células beta del páncreas, que producen la insulina, haciéndose necesaria la administración de insulina de forma exógena para controlar los niveles de glucosa en sangre. El paciente debe seguir una terapia con insulina administrada por vía subcutánea, que debe estar adaptada a sus necesidades metabólicas y a sus hábitos de vida. Esta terapia intenta imitar el perfil insulínico de un páncreas sano. La tecnología actual permite abordar el desarrollo del denominado “páncreas endocrino artificial” (PEA), que aportaría precisión, eficacia y seguridad en la aplicación de las terapias con insulina y permitiría una mayor independencia de los pacientes frente a su enfermedad, que en la actualidad están sujetos a una constante toma de decisiones. El PEA consta de un sensor continuo de glucosa, una bomba de infusión de insulina y un algoritmo de control, que calcula la insulina a infusionar utilizando los niveles de glucosa del paciente como información principal. Este trabajo presenta una modificación en el método de control en lazo cerrado propuesto en un proyecto previo. El controlador del que se parte está compuesto por un controlador basal booleano y un controlador borroso postprandial basado en reglas borrosas heredadas del controlador basal. El controlador postprandial administra el 50% del bolo manual (calculado a partir de la cantidad de carbohidratos que el paciente va a consumir) en el instante del aviso de la ingesta y reparte el resto en instantes posteriores. El objetivo es conseguir una regulación óptima del nivel de glucosa en el periodo postprandial. Con el objetivo de reducir las hiperglucemias que se producen en el periodo postprandial se realiza un transporte de insulina, que es un adelanto de la insulina basal del periodo postprandial que se suministrará junto con un porcentaje variable del bolo manual. Este porcentaje estará relacionado con el estado metabólico del paciente previo a la ingesta. Además se modificará la base de conocimiento para adecuar el comportamiento del controlador al periodo postprandial. Este proyecto está enfocado en la mejora del controlador borroso postprandial previo, modificando dos aspectos: la inferencia del controlador postprandial y añadiendo una toma de decisiones automática sobre el % del bolo manual y el transporte. Se ha propuesto un controlador borroso con una nueva inferencia, que no hereda las características del controlado basal, y ha sido adaptado al periodo postprandial. Se ha añadido una inferencia borrosa que modifica la cantidad de insulina a administrar en el momento del aviso de ingesta y la cantidad de insulina basal a transportar del periodo postprandial al bolo manual. La validación del algoritmo se ha realizado mediante experimentos en simulación utilizando una población de diez pacientes sintéticos pertenecientes al Simulador de Padua/Virginia, evaluando los resultados con estadísticos para después compararlos con los obtenidos con el método de control anterior. Tras la evaluación de los resultados se puede concluir que el nuevo controlador postprandial, acompañado de la toma de decisiones automática, realiza un mejor control glucémico en el periodo postprandial, disminuyendo los niveles de las hiperglucemias. ABSTRACT. Diabetes mellitus is a disease characterized by the insufficient or null production of insulin from the pancreas or by a reduced sensitivity to this hormone, which helps glucose get to the tissues and the nervous system to provide energy. Diabetes has more prevalence in developed countries due to multiple factors, including obesity, sedentary lifestyle and endocrine dysfunctions related to the pancreas. Type 1 Diabetes is a chronic, incurable disease in which beta cells in the pancreas that produce insulin are destroyed, and exogenous insulin delivery is required to control blood glucose levels. The patient must follow a therapy with insulin administered by the subcutaneous route that should be adjusted to the metabolic needs and lifestyle of the patient. This therapy tries to imitate the insulin profile of a non-pathological pancreas. Current technology can adress the development of the so-called “endocrine artificial pancreas” (EAP) that would provide accuracy, efficacy and safety in the application of insulin therapies and will allow patients a higher level of independence from their disease. Patients are currently tied to constant decision making. The EAP consists of a continuous glucose sensor, an insulin infusion pump and a control algorithm that computes the insulin amount that has to be infused using the glucose as the main source of information. This work shows modifications to the control method in closed loop proposed in a previous project. The reference controller is composed by a boolean basal controller and a postprandial rule-based fuzzy controller which inherits the rules from the basal controller. The postprandial controller administrates 50% of the bolus (calculated from the amount of carbohydrates that the patient is going to ingest) in the moment of the intake warning, and distributes the remaining in later instants. The goal is to achieve an optimum regulation of the glucose level in the postprandial period. In order to reduce hyperglycemia in the postprandial period an insulin transport is carried out. It consists on a feedforward of the basal insulin from the postprandial period, which will be administered with a variable percentage of the manual bolus. This percentage would be linked with the metabolic state of the patient in moments previous to the intake. Furthermore, the knowledge base is going to be modified in order to fit the controller performance to the postprandial period. This project is focused on the improvement of the previous controller, modifying two aspects: the postprandial controller inference, and the automatic decision making on the percentage of the manual bolus and the transport. A fuzzy controller with a new inference has been proposed and has been adapted to the postprandial period. A fuzzy inference has been added, which modifies both the amount of manual bolus to administrate at the intake warning and the amount of basal insulin to transport to the prandial bolus. The algorithm assessment has been done through simulation experiments using a synthetic population of 10 patients in the UVA/PADOVA simulator, evaluating the results with statistical parameters for further comparison with those obtained with the previous control method. After comparing results it can be concluded that the new postprandial controller, combined with the automatic decision making, carries out a better glycemic control in the postprandial period, decreasing levels of hyperglycemia.

Evaluating knowledge-based approaches to the multilingual extension of a temporal expression normalizer

The extension to new languages is a well known bottleneck for rule-based systems. Considerable human effort, which typically consists in re-writing from scratch huge amounts of rules, is in fact required to transfer the knowledge available to the system from one language to a new one. Provided sufficient annotated data, machine learning algorithms allow to minimize the costs of such knowledge transfer but, up to date, proved to be ineffective for some specific tasks. Among these, the recognition and normalization of temporal expressions still remains out of their reach. Focusing on this task, and still adhering to the rule-based framework, this paper presents a bunch of experiments on the automatic porting to Italian of a system originally developed for Spanish. Different automatic rule translation strategies are evaluated and discussed, providing a comprehensive overview of the challenge.

An Assessment of the Penalties System for Infringements of EU Competition Law: Can Personal Sanctions be the Missing Piece of the Puzzle? IES WORKING PAPER 6/2013

Competition law seeks to protect competition on the market as a means of enhancing consumer welfare and of ensuring an efficient allocation of resources. In order to be successful, therefore, competition authorities should be adequately equipped and have at their disposal all necessary enforcement tools. However, at the EU level the current enforcement system of competition rules allows only for the imposition of administrative fines by the European Commission to liable undertakings. The main objectives, in turn, of an enforcement policy based on financial penalties are two fold: to impose sanctions on infringing undertakings which reflect the seriousness of the violation, and to ensure that the risk of penalties will deter both the infringing undertakings (often referred to as 'specific deterrence') and other undertakings that may be considering anti-competitive activities from engaging in them (often referred to as 'general deterrence'). In all circumstances, it is important to ensure that pecuniary sanctions imposed on infringing undertakings are proportionate and not excessive. Although pecuniary sanctions against infringing undertakings are a crucial part of the arsenal needed to deter competition law violations, they may not be sufficient. One alternative option in that regard is the strategic use of sanctions against the individuals involved in, or responsible for, the infringements. Sanctions against individuals are documented to focus the minds of directors and employees to comply with competition rules as they themselves, in addition to the undertakings in which they are employed, are at risk of infringements. Individual criminal penalties, including custodial sanctions, have been in fact adopted by almost half of the EU Member States. This is a powerful tool but is also limited in scope and hard to implement in practice mostly due to the high standards of proof required and the political consensus that needs first to be built. Administrative sanctions for individuals, on the other hand, promise to deliver up to a certain extent the same beneficial results as criminal sanctions whilst at the same time their adoption is not likely to meet strong opposition and their implementation in practice can be both efficient and effective. Directors’ disqualification, in particular, provides a strong individual incentive for each member, or prospective member, of the Board as well as other senior executives, to take compliance with competition law seriously. It is a flexible and promising tool that if added to the arsenal of the European Commission could bring balance to the current sanctioning system and that, in turn, would in all likelihood make the enforcement of EU competition rules more effective. Therefore, it is submitted that a competition law regime in order to be effective should be able to deliver policy objectives through a variety of tools, not simply by imposing significant pecuniary sanctions to infringing undertakings. It is also clear that individual sanctions, mostly of an administrative nature, are likely to play an increasingly important role as they focus the minds of those in business who might otherwise be inclined to regard infringing the law as a matter of corporate risk rather than of personal risk. At the EU level, in particular, the adoption of directors’ disqualification promises to deliver more effective compliance and greater overall economic impact.

An analysis of the distinction between deep and shallow expert systems /

This paper analyzes the relationship between the techniques used to build expert systems and the behaviors they exhibit to show that there is not sufficient evidence to link the behavioral shortcomings of first-generation expert systems to the shallow methods of representation and inference they employ. There is only evidence that the shortcomings are a consequence of a general lack of knowledge. Moreover, the paper shows that the first-generation of expert systems employ both shallow methods and most of the so-called deep methods. Lastly, we show that deeper methods augment but do not replace shallow reasoning methods; most expert systems should possess both."

Continuous action system refinement

Action systems are a framework for reasoning about discrete reactive systems. Back, Petre and Porres have extended these action systems to continuous action systems, which can be. used to model hybrid systems. In this paper we define a refinement relation, and develop practical data refinement rules for continuous action systems. The meaning of continuous action systems is expressed in terms of a mapping from continuous action systems to action systems. First, we present a new mapping from continuous act ion systems to action systems, such that Back's definition of trace refinement is correct with respect to it. Second, we present a stream semantics that is compatible with the trace semantics, but is preferable to it because it is more general. Although action system trace refinement rules are applicable to continuous action systems with a stream semantics, they are not complete. Finally, we introduce a new data refinement rule that is valid with respect to the stream semantics and can be used to prove refinements that are not possible in the trace semantics, and we analyse the completeness of our new rule in conjunction with the existing trace refinement rules.

Elaboration and testing of new methodologies for automatic abstracting

The primary objective of this research was to understand what kinds of knowledge and skills people use in `extracting' relevant information from text and to assess the extent to which expert systems techniques could be applied to automate the process of abstracting. The approach adopted in this thesis is based on research in cognitive science, information science, psycholinguistics and textlinguistics. The study addressed the significance of domain knowledge and heuristic rules by developing an information extraction system, called INFORMEX. This system, which was implemented partly in SPITBOL, and partly in PROLOG, used a set of heuristic rules to analyse five scientific papers of expository type, to interpret the content in relation to the key abstract elements and to extract a set of sentences recognised as relevant for abstracting purposes. The analysis of these extracts revealed that an adequate abstract could be generated. Furthermore, INFORMEX showed that a rule based system was a suitable computational model to represent experts' knowledge and strategies. This computational technique provided the basis for a new approach to the modelling of cognition. It showed how experts tackle the task of abstracting by integrating formal knowledge as well as experiential learning. This thesis demonstrated that empirical and theoretical knowledge can be effectively combined in expert systems technology to provide a valuable starting approach to automatic abstracting.

An analysis of users' reactions to an expert advisory system

Ignorance of user factors can be seen as one of the nontechnical issues contributing to expert system failure. An expert advisory system is built for nonexpert users; the users' acceptance is a very important factor for its successful implementation. If an expert advisory system satisfactorily represents the expertise in the domain, there still remains the question: "Will the end-users use the system?" This paper aims to address users' issues by analysing their reactions towards an expert advisory system called ADGAME, developed to help its users make better decisions in playing a competitive business game. Two experiments with ADGAME have been carried out. The research results show that, when the use of the expert advisory system is optional, there is considerable reluctance to use it, particularly amongst the "worst" potential users. Users also doubt the potential benefits in terms of improved learning and confidence in decisions made. Strangely, the one positive expectation that users had, that the system would save them time, proved not to be the case in practice; ADGAME appears to improve the users' effectiveness rather than their efficiency. © 1995.