Fed risk rating system unifies stress testing and 3LOD

Some banks have qualms over potential downgrades and overlap between first and second lines

Traditionally, US colleges evaluate student admission applications by coldly ranking them according to grades, scores on standardised tests and extracurricular activities, using these metrics to come up with an overall score. Recently, however, schools have started playing down the importance of grades and test scores, and given greater emphasis to qualitative factors such as leadership ability, overcoming hardships and celebrating unique talents.

In much the same way, the Federal Reserve is