What happens if a bit is flipped in a private key embedded in a HSM? For example the root CA private key or the root cold wallet key for a cryptocurrency exchange? In this case you are not able to alter the public key to correct for the bit flip (like they did with Voyager). I guess if that happens you are toast?
Yeah same happens if someone tries to open it and the HSM deletes the content, or someone physically burns it, etc.
Generally that's why you ideally don't just have one key, but multiple. Ideally with voting, but even if you just replicate the key into a second HSM at a different physical location, it's going to improve your situation a lot.