Arc flash is one of the major causes of injuries and death in electrical work related incidents. Arc flash risk assessment is required to protect the working personnel from the hazards of an arc flash event. This paper conducts an investigation to analyze the effects of critical parameters that influence incident energy level at different locations in a power system. An electrical network, a representative of small industrial facility, is modelled and in different scenarios, incident energy is determined by simulating an arc flash analysis based on IEEE 1584 standard on Electrical Transient Analyzer Program (ETAP). The results of simulation are then presented, plotted and discussed. Different mitigation techniques are also proposed to reduce incident energy. The results could help the field personnel to know about the parameters that are crucial to incident energy. This will help them to explore different mitigation techniques against arc flash event.