The automotive industry and academic research have been continuously conducting research on standardization such as AUTOSAR (AUTomotive Open System ARchitecture) and ISO26262 to solve problems such as safety and efficiency caused by the complexity of electric/electronic architecture of automotive. AUTOSAR is an automotive standard software platform that has a layered structure independent of MCU (Micro Controller Unit) hardware, and improves product reliability through software modularity and reusability. And, ISO26262, an international standard for automotive functional safety and suggests a method to minimize errors in automotive ECU (Electronic Control Unit)s by defining the development process and results for the entire life cycle of automotive electrical/electronic systems. These design methods are variously applied in representative automotive safety-critical systems. However, since the functional and safety requirements are different according to the characteristics of the safety-critical system, it is essential to research the AUTOSAR functional safety design method specialized for each application domain. In this paper, a software functional safety mechanism design method using AUTOSAR is proposed, and a new failure management framework is proposed to ensure the high reliability of the product. The AUTOSAR functional safety mechanism consists of memory partitioning protection, timing monitoring protection, and end-to-end protection. The fault management framework is composed of several safety SWCs to maintain the minimum function and performance even if a fault occurs during the operation of a safety-critical system. Finally, the proposed method is applied to the Shift-by-Wire system design to prove the validity of the proposed method.