This paper describes the theory and considerations in the application of metrics to measure the effectiveness of fault management. Fault management refers here to the operational aspect of system health management, and as such is considered as a meta-control loop that operates to preserve or maximize the system's ability to achieve its goals in the face of current or prospective failure. As a suite of control loops, the metrics to estimate and measure the effectiveness of fault management are similar to those of classical control loops in being divided into two major classes: state estimation, and state control. State estimation metrics can be classified into lower-level subdivisions for detection coverage, detection effectiveness, fault isolation and fault identification (diagnostics), and failure prognosis. State control metrics can be classified into response determination effectiveness and response effectiveness. These metrics are applied to each and every fault management control loop in the system, for each failure to which they apply, and probabilistically summed to determine the effectiveness of these fault management control loops to preserve the relevant system goals that they are intended to protect.