Reliability is a major performance index in the electromechanical product conceptual design decision process. As the function is the purpose of product design, the risk of scheme design is easy to be caused when there is a failure (i.e., function failure). However, existing reliability analysis models focus on the failure analysis of functions but ignore the quantitative risk assessment of conceptual schemes when function failures occur. In addition, design information with subjectivity and fuzziness is difficult to introduce the risk index into the early design stage for comprehensive decisions. To fill this gap, this paper proposes a conceptual scheme decision model for mechatronic products driven by the risk of function failure propagation. Firstly, the function structure model is used to construct the function fault propagation model, so as to obtain the influence degree of the subfunction failure. Secondly, the principle solution weight is calculated when the function failure is propagated, and the influence degree of the failure mode is integrated to obtain the severity of the failure mode on the product system. Thirdly, the risk value of failure mode is calculated by multiplying the severity and failure probability of failure mode, and the risk value of the scheme is obtained based on the influence relationship between failure modes. Finally, the VIKOR (Višekriterijumska Optimizacija i kompromisno Rešenje) method is used to make the optimal decision for the conceptual scheme, and then take the cutting speed regulating device scheme of shearer as an example to verify the effectiveness and feasibility of the proposed decision model.