There is provided a method of fault management of a smart device including comparing a value of a fault detection indicator (hereinafter referred to as ‘FDI’) in a normal state, which detects faults generated in the smart device, with respect to at least one performance indicator, with an FDI value observed in real time and detecting the faults by calculating a relative variation level of the observed values, and creating a diagnosis object (hereinafter referred to as ‘DO’) including a cause and a countermeasure of the detected fault and analyzing the fault.