Building post crisis watchtowers: investment management Systems and new institutional logics for regulatory compliance

The financial crisis of 2007-2009 has precipitated large scale regulatory change. Tight deadlines for implementation require organizations to start working on remediation projects before final drafts of regulations are crystalized. Firms are faced with engaging in complex and costly change management programs at a time when profits are diminished. As a consequence of these factors, pre-crisis logics for organizing compliance practices are being questioned and new approaches introduced. Our study explores the use of Investment Management Systems (IMS) in facilitating compliance arrangements. Our motivation is to understand the new logics and the part played by IMS in supporting these approaches. The study adopts an institutional logics perspective to explore the use of such systems at eight financial organizations. The study found new logics for organizing compliance include consolidation, centralization, harmonization and consistency and that the IMS plays an important role in supporting and enabling related activities.

Transreal arithmetic as a consistent basis for paraconsistent logics

Paraconsistent logics are non-classical logics which allow non-trivial and consistent reasoning about inconsistent axioms. They have been pro- posed as a formal basis for handling inconsistent data, as commonly arise in human enterprises, and as methods for fuzzy reasoning, with applica- tions in Artificial Intelligence and the control of complex systems. Formalisations of paraconsistent logics usually require heroic mathe- matical efforts to provide a consistent axiomatisation of an inconsistent system. Here we use transreal arithmetic, which is known to be consis- tent, to arithmetise a paraconsistent logic. This is theoretically simple and should lead to efficient computer implementations. We introduce the metalogical principle of monotonicity which is a very simple way of making logics paraconsistent. Our logic has dialetheaic truth values which are both False and True. It allows contradictory propositions, allows variable contradictions, but blocks literal contradictions. Thus literal reasoning, in this logic, forms an on-the- y, syntactic partition of the propositions into internally consistent sets. We show how the set of all paraconsistent, possible worlds can be represented in a transreal space. During the development of our logic we discuss how other paraconsistent logics could be arithmetised in transreal arithmetic.

Approximations of modal logics: K and beyond

Inspired by the recent work on approximations of classical logic, we present a method that approximates several modal logics in a modular way. Our starting point is the limitation of the n-degree of introspection that is allowed, thus generating modal n-logics. The semantics for n-logics is presented, in which formulas are evaluated with respect to paths, and not possible worlds. A tableau-based proof system is presented, n-SST, and soundness and completeness is shown for the approximation of modal logics K, T, D, S4 and S5. (c) 2008 Published by Elsevier B.V.

On AGM for Non-Classical Logics

The AGM theory of belief revision provides a formal framework to represent the dynamics of epistemic states. In this framework, the beliefs of the agent are usually represented as logical formulas while the change operations are constrained by rationality postulates. In the original proposal, the logic underlying the reasoning was supposed to be supraclassical, among other properties. In this paper, we present some of the existing work in adapting the AGM theory for non-classical logics and discuss their interconnections and what is still missing for each approach.