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Losing one will not lose you the +1 flanking bonus. Even a single model will give you this bonus if it survives.
You will be unable to break ranks if you don't have at least two ranks yourself. This will probably be more important, depending on the number of ranks the opposing unit has. In this regard, 15 hounds would be much better as they can suffer five casualties and still have two full ranks. Remember that not only shooting prior to the combat is relevant. Your flanker must be able to suffer a few casualties from combat as well because ranks are determined at the end of the combat. It is not at all exotic to lose a model even to subpar fighters such as State Troops or Clanrats.
However, flanking alone, ranks or not, will not remove steadfast as long as the target has more total ranks than either of your units. With a unit of CW in the front and Horsemen in the flank, you are extremely likely to win the fight through the sheer number of kills, regardless of whether you remove their rank bonus or not. Not only is winning still important, as even a high Ld test can be failed, more kills will also serve to remove those extra ranks faster.
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