Risk Framework
Tiers & Suitability
How 0-10 scores map to Prime/Core/Edge tiers and institutional suitability labels in v4.1.
Tier Mapping (Score-Based)
| Tier | Score Range | Interpretation |
|---|---|---|
| Prime | 8.0-10.0 | Strong relative resilience under current evidence and methodology state |
| Core | 5.0-7.9 | Moderate resilience with meaningful constraints |
| Edge | 0.0-4.9 | Elevated or unresolved risk pressure |
Tiers are relative classifications, not guarantees or recommendations.
Suitability Labels (Policy Layer)
In v4.1, the methodology also emits suitability labels:
| Suitability | Rule |
|---|---|
| institutional | reviewed + final score >= 8 + no hard-fail flags + high-confidence evidence |
| qualified | reviewed + final score >= 5 |
| speculative | reviewed/provisional but below qualified or constrained by caps |
| not_assessed | unreviewed |
Suitability is distinct from tier:
- Tier describes score range.
- Suitability adds governance/evidence requirements.
What Forces A Lower Outcome
v4.1 no longer relies on a single binary disqualification list. Instead, score-limiting constraints are explicit and explainable:
- cap cascade on asset scoring (
review_status, hard-fail flags, overrides, staleness) - unresolved address fallback to strict unreviewed behavior
- portfolio-level concentration/correlation/wrong-way penalties
- asset-quality drag and hard cap for non-prime assets
- fail-safe operational mode (
degradedorfail_closed)
Practical Reading Guidance
- A Prime tier can still be non-institutional if evidence confidence or governance criteria are insufficient.
- A Core or Edge tier often indicates one or more binding caps; check explainability fields (caps, flags, freshness, provenance).
- When fail-safe is
fail_closed, no score is served by design.