N-1 Criterion
TL;DR
N-1 criterion requires systems survive any single component failure. The 2003 Northeast blackout (50M people, $10B) demonstrated cascade failure when this standard was violated—one sagging power line triggered continental collapse.
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Power grid design principle requiring systems to maintain function with any single component failure. N-2 extends this to two component failures.
Business Application of N-1 Criterion
EDF's N-1 criterion translates directly to business contexts: Can you lose your largest customer without crisis? Can a single supplier failure disrupt operations? Can your top performer's departure paralyze a department? If losing any single component causes system-wide failure, you lack N-1 redundancy.