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Farhana Afroz

Publications and source records attributed to Farhana Afroz.

2 recordsLinked to original sources

Ethical and Explainable AI in Reusable MLOps Pipelines

This paper introduces a unified machine learning operations (MLOps) framework that brings ethical artificial intelligence principles into practical use by enforcing fairness, explainability, and governance throughout the machine learning lifecycle. The proposed method reduces bias by lowering the demographic parity difference (DPD) from 0.31 to 0.04 without model retuning, and cross-dataset validation achieves an area under the curve (AUC) of 0.89 on the Statlog Heart dataset. The framework maintains fairness metrics within operational limits across all deployments. Model deployment is blocked if the DPD exceeds 0.05 or if equalized odds (EO) exceeds 0.05 on the validation set. After deployment, retraining is automatically triggered if the 30-day Kolmogorov-Smirnov drift statistic exceeds 0.20. In production, the system consistently achieved DPD <= 0.05 and EO <= 0.03, while the KS statistic remained <= 0.20. Decision-curve analysis indicates a positive net benefit in the 10 to 20 percent operating range, showing that the mitigated model preserves predictive utility while satisfying fairness constraints. These results demonstrate that automated fairness gates and explainability artefacts can be successfully deployed in production without disrupting operational flow, providing organizations with a practical and credible approach to implementing ethical, transparent, and trustworthy AI across diverse datasets and operational settings.

cs.CY↗

Bayesian Modeling for Uncertainty Management in Financial Risk Forecasting and Compliance

A Bayesian analytics framework that precisely quantifies uncertainty offers a significant advance for financial risk management. We develop an integrated approach that consistently enhances the handling of risk in market volatility forecasting, fraud detection, and compliance monitoring. Our probabilistic, interpretable models deliver reliable results: We evaluate the performance of one-day-ahead 95% Value-at-Risk (VaR) forecasts on daily S&P 500 returns, with a training period from 2000 to 2019 and an out-of-sample test period spanning 2020 to 2024. Formal tests of unconditional (Kupiec) and conditional (Christoffersen) coverage reveal that an LSTM baseline achieves near-nominal calibration. In contrast, a GARCH(1,1) model with Student-t innovations underestimates tail risk. Our proposed discount-factor DLM model produces a slightly liberal VaR estimate, with evidence of clustered violations. Bayesian logistic regression improves recall and AUC-ROC for fraud detection, and a hierarchical Beta state-space model provides transparent and adaptive compliance risk assessment. The pipeline is distinguished by precise uncertainty quantification, interpretability, and GPU-accelerated analysis, delivering up to 50x speedup. Remaining challenges include sparse fraud data and proxy compliance labels, but the framework enables actionable risk insights. Future expansion will extend feature sets, explore regime-switching priors, and enhance scalable inference.

q-fin.RM↗