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Safety-critical systems in most modern applications are designed in a way such that they provide a fail-safe operation when a fault occurs, to pose minimum risk to the user. As these systems become more sophisticated with increased functionality, it is important that their design incorporates functional safety concepts which entail detection of a potential harmful condition that prompts a corrective action to prevent hazardous events. In this paper, we discuss the significance of safety-critical systems along with the implementation of fail-safe designs in these systems. We also aim to provide an overview of functional safety as addressed in some of the industry standards and through a case study demonstrate how the concepts can be used when developing a safety-critical system.