Critical failure refers to a situation where a system, process, or component fails in a way that significantly impacts its functionality or safety. This type of failure often leads to severe consequences, such as accidents, financial loss, or damage to reputation. Examples can include software crashes, mechanical breakdowns, or structural collapses. In engineering and project management, critical failure is often analyzed to improve future designs and prevent similar issues. Techniques like failure mode and effects analysis (FMEA) are used to identify potential failure points and develop strategies to mitigate risks, ensuring better reliability and safety in systems.