What makes crisis management in financial institutions fairly unique and particularly complex is the accompanying crisis contagion or systemic risk. The subprime mortgage crisis currently happening in the USA is a typical example. In order to further deepen our understanding of how crisis contagion occurs and enhance information interchange and knowledge sharing among related entities, ontologies for crisis contagion management in financial institutions are proposed in this study. Three categories of ontologies, which include static ontology, dynamic ontology, and social ontology, are developed to deal with different perspectives in this domain. The three types of ontology are then united in the Ontology Web Language (OWL) and the Semantic Web Rules Languages (SWRL) framework, both of which are machine readable. Finally, the case of Long-Term Capital Management (LTCM) is offered to demonstrate how the proposed ontologies are used in financial institutions.
G. Kaufman , Banking and currency crises and systemic risk: Lessons from recent events, Economic PerspectivesQ(3) (2000) 9-28.
2.
L. Eisenberg and T.H. Noe , Systemic risk in financial systems, Management Science47(2) (2001) 236.
3.
A.R. Sorkin , JP Morgan pays $2 a share for Bear Stearns , The New York Times (17 March 2008).
4.
B. White and J. Anderson, Lehman heads toward brink as Barclays ends talks, The New York Times (14 September 2008).
5.
J. Hilsenrath , S. Ng and D. Paletta, Worst crisis since ‘30s, with no end yet in sight, The Wall Street Journal (18 September 2008).
6.
P. Jorion, Risk management lessons from long-term capital management, European Financial Management6 ( 2000) 277-300.
7.
M.S. Scholes , The near crash of 1998: crisis and risk management , The American Economic Review90(2) (2000) 17-21.
8.
L.E. Kodres and M. Pritsker, A rational expectations model of financial contagion, Journal of Finance57(2) (2002) 769-799.
9.
A. Lehar, Measuring systemic risk: A risk management approach, Journal of Banking and Finance29(10) (2005) 2577-2603
10.
T.R. Gruber , A translation approach to portable ontology specifications, Knowledge Acquisition5 (1993) 199-220.
11.
N.F. Noy and C.D. Hafner, The state of the art in ontology design: a survey and comparative review, AI Magazine ( 1997) 53-74.
12.
C. Brewster and K. O’Hara, Knowledge representation with ontologies: The present and future, IEEE Intelligent Systems ( 2004) 72-81.
13.
B. Chandrasekaran , J.R. Josephson and V.R. Benjamins, What are ontologies and why do we need them?IEEE Intelligent Systems ( 1999) 20-26.
14.
Y. Ding and S. Foo, Ontology research and development. Part 1 - a review of ontology generation , Journal of Information Science28(2) (2002) 123-136.
15.
I. Jurisica , J. Mylopoulos and E. Yu , Ontologies for knowledge management: an information systems perspective, Knowledge and Information Systems6 ( 2004) 380-401.
16.
T.X. Bui and S.R. Sankaran, Design considerations for a virtual information centre for humanitarian assistance/disaster relief using workflow modelling, Decision Support Systems31 (2001) 165-179.
17.
H.Y. Mak , A.P. Mallard, T. Bui and G. Au , Building online crisis management support using workflow systems, Decision Support Systems25 (1999) 209-224.
18.
H. Wang, J. Mylopoulos and S. Liao, Intelligent Agents and financial risk monitoring systems, Communication of ACM45(3) (2002) 83-88.
19.
A. Crockett , Why is financial stability a goal of public policy? In: Maintaining Financial Stability in a Global Economy (Federal Reserve Bank of Kansas City, Kansas, 1997 ).
20.
D.E. O’Leary , Using AI in Knowledge Management: Knowledge Bases and Ontology, IEEE Intelligent Systems ( 1998) 34-39.
21.
B.C. Vickery , Ontologies, Journal of Information Science23(4) (1997) 277-286.
22.
Y. Wand and R. Weber, Information systems and conceptual modelling-a research agenda, Information Systems Research13(4) (2002) 363-376.
23.
H. Wang and C. Wang, Ontologies for universal information systems, Journal of Information Science21(3) (1995) 232-239.
24.
M.K. Smith , C. Welty and D.L. McGuiness, OWL Web Ontology Language Guide. W3C Recommendation, 10 February 2004 .
25.
I. Horrocks , P.F. Patel-Schneider, H. Bobley, S. Tabet, B. Grosof and M. Dean, SWRL: A Semantic Web Rule Language Combining OWL and RuleML. Acknowledged W3C Member Submission, 21 May 2004.
26.
J. Castro , M. Kolp and J. Mylopoulos, Towards requirements-driven information systems engineering: the Tropos project, Information Systems27 (2002) 365-389.
27.
J.F.B. Castro , C.T.L.L. Silva and J. Mylopoulos, Modeling organizational architectural styles in UML. In: The 15th Conference on Advanced Information Systems Engineering (CAiSE 03) LNCS, 2681. ( Springer-Verlag Berlin Heidelberg, 2003) 111-126.
28.
B. Selic and J. Rumbaugh, Using UML for Modeling Complex Real-Time Systems. Rational Whitepaper (1998 ). Available at: www.rational.com
29.
P. Bresciani , P. Giorgini, F. Giunchiglia, J. Mylopoulos and A. Perini, Tropos: an agent-oriented software development methodology, Autonomous Agents and Multi-Agent Systems8 (2004) 203-236.
30.
P. Jorion, Value at Risk: The New Benchmark for Managing Financial Risk, 2nd edn (McGraw-Hill, New York, 2001).
31.
C. Golbreich , Combining rule and ontology reasoners for the semantic web. In: Rules and Rule Markup Languages for the Semantic Web (Springer, Berlin, 2004) 6-22.
