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This paper is an application of ISO 26262 functional safety standards for fail-safe design, development and validation of Electric Power Assisted Steering (EPAS) System. As part of safety feature to save lives, prevent injuries and reduce economic loss due to accidents, many research institutes are working to ensure the safety and reliability of emerging safety-critical Electronic Control Systems in automobile applications. As, Advanced Driver Assistance Systems (ADAS) and other emerging technologies are introduced in the automobile application, the overall safety of these advanced electronic systems relies on the vehicle safety systems, such as steering systems. This paper outlines the approach of performing the Hazard Analysis & Risk Assessment (HARA) and developing a Functional Safety Concept. This approach incorporates several analysis methods, including Hazard and Operability study, Functional Failure Modes and Effects Analysis.