In the World Martial Arts Association, we don't (often, if at all) fail students, we just don't advance them until they are ready. I'm a teacher (1stDeg), and I take my students to my instructor (5thDeg) to be assessed for promotion. The student doesn't know about this, of course, but my instructor lets me know a few things they need to work on. He's got the experience to know this, and to be able to see their readiness much more clearly than I. Only when they have mentally, emotionally, and physically been sufficiently prepared do we announce that they will test at the next event. So for us, a 'test' is more of a celebration. Oh, everyone is put through their paces at the test, but the outcome - baring a major meltdown - is already determined. I never have to say "failed" to any of my students, nor have I seen that been said more than once or twice in six years. We just say, "not yet".