The contribution of Small and Medium Industries is very large for aspects of the economy in Indonesia. To increase the competitiveness of their products, the small and medium industries must improve the quality of their products. One of the things that can be done in addition to measuring the performance, by measuring the risk along the process can minimize failures and quality costs. The purpose of this study is to design a risk management measurement model based on the concept of ISO 31000 and Design Failure Mode and Effect Analysis (DFMEA) in small and medium industries. This research method is to use a qualitative approach and descriptive analysis with the approach to the concept of ISO 31000 and DFMEA. The result of this research is that there are four stages in measuring the risks contained in SMI’s, namely the risk identification stage, the risk analysis stage, the risk evaluation stage, and the risk treatment stage. The DFMEA concept is at the risk analysis stage using the Risk Priority Number. The measurement of risk uses four variables, namely raw material risk, production process risk, marketing risk, capital risk, and legality risk.