Bob - ANYTHING can fail. A magnetic compass is one of those things that I would bet against failure every time, and I am confident that I would come out a big winner. Of course I would be betting money and not my life.And don't forget a compass can go bad. I had one that made me think I couldn't follow a compass course anymore. It seems that on the surface before the dive it worked perfect, then when subjected to cold and pressure it would not swing properly. My buddy was on my a** about my lack of skill with a compass, until we were out of the water and it was pointing due east. When moved it was sluggish and stopped where it wanted. After a half hour or so during the SI, it worked perfect again.
Needless to say, I got another compass. And I think twice before I tell someone a compass can't go bad.
Bob
Electronic compasses are a different issue. I once had a gyro compass fail on me while flying with just a small amount of drift, but enough that I could have gotten into serious problems. Thank goodness (and training) there were a couple of visual references (and my magnetic compass) that kept me from flying in circles until flame-out. That's one of the reasons that I believe in redundancy.
I will say that I have never cold weather tested an oil-filled compass. Less than 6 ata is about the limit of my pressure testing of one without failure.
Cheers - M²