This article proposes the Function–Behavior–Structure–Failure Modes (FBSFMs), a novel ontological framework for an enhanced representation of system knowledge, to address the integration gap between the system models and design risk analysis activities during the early product development phase. As a theoretical contribution, the FBSFM extends the well-established function–behavior–structure ontology for system design information representation in terms of functions, intended behaviors, and structure, with an ontology schema for the representation of the actual behavior as function failure modes, enriched with linkages to causes and effects across multiple levels of system abstraction. This integrated representation improves design risk analysis by facilitating the traceability between design decisions captured in system models and potential failure scenarios documented in Failure Mode and Effects Analyses (FMEAs). The framework was implemented using formal ontology engineering methods and implemented in Web Ontology Language using Protégé. A real-world automotive case study was conducted in collaboration with practicing engineers and domain experts from a global automotive manufacturer, to demonstrate the framework’s applicability and its ability to support structured failure knowledge representation. The case study illustrates the capability of the ontology to consolidate multisource engineering knowledge, specifically design data derived from system modeling and structured risk artifacts from FMEA, into a coherent, machine-readable repository, supporting enhanced traceability from user goals to potential system failures. The use of ontological reasoning and structured querying facilitates the systematic review and validation of FMEA information against system models, with a positive impact on product development practice.