Reliability assessment in traditional power distribution systems has played a key role in power system planning, design, and operation. Recently, new information and communication technologies have been introduced in power systems automation and asset management, making the distribution network even more complex. In order to achieve efficient energy management, the distribution grid has to adopt a new configuration and operational conditions that are changing the paradigm of the actual electrical system. Therefore, the emergence of the cyber-physical systems concept to face future energetic needs requires alternative approaches for evaluating the reliability of modern distribution systems, especially in the smart grids environment. In this paper, a reliability approach that makes use of failure modes of power and cyber network main components is proposed to evaluate risk analysis in smart electrical distribution systems. We introduce the application of Failure Modes and Effects Analysis (FMEA) method in future smart grid systems in order to establish the impact of different failure modes on their performance. A smart grid test system is defined and failure modes and their effects for both power and the cyber components are presented. Preventive maintenance tasks are proposed and systematized to minimize the impact of high-risk failures and increase reliability.