An electronics-based system (100) for power conversion and load management provides control sequencing and prognostic health monitoring and diagnostics for fault tolerant operation of the system. The system (100) includes a prognostic health monitoring and diagnostic unit (30) for identifying present out-of-range conditions, overload conditions, and trending violations, for components of the system and a decision making unit (20), which controls transitions between a plurality of operating modes to ensure fail-safe operation without unnecessary tripping, cold-starts or system resets upon the occurrence of certain fault conditions.