Citation

Muthaiyah, Saravanan and Nguyen, Thi Phuong Lan and Yap, Voon Choong and Zaw, Thein Oak Kyaw (2024) Orchestration of Federated Risk for P2P Lending Platforms: A Multi-Agent Systems (MAS) Approach. HighTech and Innovation Journal, 5 (4). pp. 949-959. ISSN 2723-9535

Text Orchestration of Federated Risk for P2P Lending Platforms_ A Multi-Agent Systems (MAS) Approach _ Muthaiyah _ HighTech and Innovation Journal.pdf - Published Version Restricted to Repository staff only Download (4MB)

Abstract

Federated risk management in the context of Peer-to-Peer (P2P) lending shouldbe a collaborative approach with multiple autonomous entities(i.e. agent systems) working together to assess, monitor, and mitigate risks. Orchestration of these agentsiscrucial in facilitating risk evaluation, surveillance, and mitigation tactics. By employing Multi-AgentSystems(MAS), the orchestration of risk, regulatory compliance,and stakeholders' interests are better protected. The framework of federated risk management in P2P lending aims to address challenges and risks inherent in decentralized platforms. In recent years, the P2P lending industry has experienced significant growth, attracting both borrowers and investors seeking an alternative financial system. However, this growth has exposed the industry to various risks, including credit risk, fraud, and information asymmetry. As a result, the need for a robust risk management framework has become increasingly critical. In this paper,we delve into the role of intelligent agents and their protocol for collaborative dynamics that uses the portfolio's return (Rp) and the risk-free rate (Rf), divided by the standard deviation of the portfolio's excess return (σp)for various investment portfolios. Our framework allows MASto analyzedata from diverse sources, default rates, paybackhistory,and portfolio risks to propose adaptive strategies for risk mitigation

Item Type:	Article
Uncontrolled Keywords:	P2P Lending, Multi Agent Systems(MAS), Risk Free Rate, Portfolio Excess Return
Subjects:	H Social Sciences > HF Commerce > HF5001-6182 Business > HF5717-5734.7 Business communication Including business report writing, business correspondence
Divisions:	Faculty of Management (FOM)
Depositing User:	Ms Nurul Iqtiani Ahmad
Date Deposited:	12 Feb 2025 01:47
Last Modified:	12 Feb 2025 01:47
URII:	http://shdl.mmu.edu.my/id/eprint/13426

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