The correct answer is Applications should be designed to fail closed, defaulting to a secure state. The principle of "defense in failure" (also called "fail secure" or "fail safe") means that when a security mechanism fails or encounters an error, it should default to a secure state that denies access rather than allowing it. This prevents security breaches during exceptional conditions and ensures that security is maintained even when things go wrong.
Applications should collect detailed logs when failures occur is incorrect because while logging failures is an important security practice for detection and forensics, it is a separate principle from defense in failure. Logging documents what happened but doesn't control the security state during failure.
Applications should never fail under any circumstances is incorrect because it represents an unrealistic expectation. All systems will eventually fail under some circumstances, and secure design requires planning for these failures rather than assuming they won't occur.
Applications should hide error details from administrators is incorrect because hiding error details from administrators would hinder troubleshooting and incident response. Proper error handling should hide sensitive details from users while providing administrators with the information needed to address issues.
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