14 CFR § 29.1309

The design of each item of equipment, system, and installation must be analyzed separately and in relation to other rotorcraft systems and installations to determine and identify any failure that would affect the capability of the rotorcraft or the ability of the crew to perform their duties in all operating conditions.

Each item of equipment, system, and installation must be designed and installed so that:

The occurrence of any catastrophic failure condition is extremely improbable;

The occurrence of any major failure condition is no more than improbable; and

For the occurrence of any other failure condition in between major and catastrophic, the probability of the failure condition must be inversely proportional to its consequences.

A means to alert the crew in the event of a failure must be provided when an unsafe system operating condition exists and to enable them to take corrective action. Systems, controls, and associated monitoring and crew alerting means must be designed to minimize crew errors that could create additional hazards.

Compliance with the requirements of this section must be shown by analysis and, where necessary, by ground, flight, or simulator tests. The analysis must account for:

Possible modes of failure, including malfunctions and misleading data and input from external sources;

The effect of multiple failures and latent failures;

The resulting effects on the rotorcraft and occupants, considering the stage of flight and operating conditions; and

The crew alerting cues and the corrective action required.