What Is Human Risk Management? Definition & 2025 Guide

Human Risk Management (HRM) refers to identifying, assessing, and mitigating security risks stemming from human behavior within an organization. While traditional risk management focuses on systems or technical failures, HRM addresses how employee actions, decisions, and oversights can lead to vulnerabilities.

The urgency for organizations to adopt HRM practices is evident. The 2025 Verizon Data Breach Investigations Report revealed that human error contributed to over 60% of security incidents.

Also, Forrester predicts that in 2024, human factors will drive 90% of data breaches as threat actors exploit advanced social engineering tactics. These show that even the best technologies can fall short if human factors aren’t managed properly.

In this blog, we’ll explore the concept of human risk management, why it matters, and how businesses can create a robust framework to address risks stemming from employee behavior.

What is Human Risk Management?

Human Risk Management is about finding and fixing risks caused by people’s actions in a company. It looks at mistakes, carelessness, or even intentional actions that could cause problems. HRM focuses on building awareness and responsibility through training, clear rules, and good leadership.

Watch the YouTube video below to learn about Human Risk Management and how Keepnet reduces human-related cybersecurity threats.

Why Human Risk Management Matters in 2025

Digital defenses have never been stronger, yet the weak point remains painfully familiar: people. Verizon’s 2025 Data Breach Investigations Report found that 60% of all breaches last year started with a non-malicious human action—a click, a mis-addressed email, a mis-configuration.

Forrester goes a step further, forecasting that nine in ten breaches in 2024-25 will still hinge on the human element, despite rising investment in technical controls.

These numbers translate into real-world costs. Take the incident at Lloyds Banking Group in early 2025: during a routine statement run, staff accidentally posted a 300-page bundle of high-net-worth clients’ investment data—names, addresses, even multi-million-pound portfolio values—to the wrong customer. Lloyds had to notify every affected client, file a report with the UK Information Commissioner’s Office, and offer compensation while regulators investigate. The breach stemmed from a single “human error,” yet it exposed hundreds of customers and tarnished brand trust built over more than 250 years. (Source)

Cases like this underscore why Human Risk Management (HRM) is now mission-critical:

• Threats are people-centric: Ransomware crews and phishing gangs increasingly rely on social engineering—deepfake voice calls, QR-based phish, Gen-AI emails—to bypass hardened networks.
• Compliance is rising: Frameworks such as ISO/IEC 42001 and DORA explicitly require controls that address the “human-in-the-loop.” Regulators want proof that you can measure, not just train.
• Hybrid work widens exposure: Home Wi-Fi, personal devices, and shadow SaaS blur the perimeter, turning every employee into a potential entry point.
• Board scrutiny is sharper: Investors want to see outcome-driven metrics—click-rate reduction, risk-score deltas—not tick-box training logs.

In short, 2025 is the year security outcomes depend less on firewalls and more on how effectively you quantify, shape, and monitor human behaviour. HRM provides the framework: baseline the risk, intervene with tailored nudges, automate response, and prove improvement with data the board can read at a glance. Ignore it, and you risk becoming the next headline-worthy cautionary tale.

By implementing Human Risk Management, organizations can address these risks proactively. It’s not just about avoiding mistakes but also about fostering a culture of security awareness and accountability. This approach helps protect the company’s data, reputation, and bottom line, while also empowering employees to become part of the solution rather than the problem.

Key Differences Between Human Risk Management and Traditional Risk Management

Human Risk Management Solution and traditional risk management differ in their focus and approach to mitigating risks within organizations. These differences highlight why the Human Risk Management Platform is essential in today’s evolving risk landscape, where human behavior can be just as critical as technology in maintaining security:

Table 1: Human Risk Management vs Traditional Risk Management

Also, check our blog to learn the core differences between Human Risk Management and security awareness training programs.

5-Step Human-Risk Framework

Below is a practitioner-grade blueprint that security teams can adopt today. Each step is iterative—automate what you can, but never lose the human context.

1. Baseline & Quantify

Before you can fix risk, you must see it. Start with a phishing baseline and a 30-day behaviour sweep: pull login-failure logs, email-report-rates and policy-violation tickets into a single human-risk dashboard. Weight every signal for likelihood and impact so the output is a true risk score, not a vanity metric. Frameworks such as CyBehave’s 2025 good-practice guide recommend pairing hard indicators (click-through, MFA fatigue responses) with culture signals (psychological-safety scores) for a 360° view (Source).

2. Prioritise & Segment

Raw scores mean nothing until you translate them into personas. Use clustering to group users by role, threat exposure and score volatility—e.g., “High-Privilege Frequent Travellers” or “First-Line Support with Legacy Access.” This segmentation lets you triage limited resources: apply zero-trust controls to top-risk cohorts while offering lighter-touch reinforcement to low-risk teams. Our research shows teams that segment see up to a 38% phishing risk reduction.

3. Intervene

Now deliver precision nudges instead of carpet-bomb training. Examples:

• Just-in-time prompts that pop when a user hovers over an unknown QR code.
• Micro-learning bursts (≤ 3 min) auto-assigned after a risky click.
• Positive reinforcement badges when employees report suspected phish within 60 seconds.

Because the content is tied to each persona’s risk triggers, engagement rates soar and behaviour change sticks longer than annual slideshow training.

4. Automate & Orchestrate

Wire the HRM platform into your SOAR / SIEM stack so incidents loop back into the human-risk scorecard. Example flow: reported email → SOAR triage → confirmed threat → platform auto-enrols that user’s cohort in a follow-up drill, while IAM enforces an adaptive control (step-up MFA, session revocation). This closed loop trims mean incident-response time by 80% according to oR case studies. Check details on our customer success story how they were able to increase phishing reporting up to 94%.

5. Measure & Report

Finally, trade “completion rates” for outcome-driven metrics:

Table 2: Measure and Report

Roll these into a monthly governance deck and a live exec dashboard so leadership sees trend lines, not snapshots. Boards—and Google’s algorithms—reward pages that surface actionable, data-rich insights over generic advice.

Pro tip: Treat the framework as a spiral, not a ladder. Every new threat campaign feeds fresh telemetry into Step 1, and the cycle accelerates. Teams that repeat the loop quarterly typically halve their aggregate human-risk score within the first 12 months.

Why Security Awareness Evolved to Human-Risk Management

Traditional security awareness programs have often centered around compliance-driven training, emphasizing checklists and regulations rather than fostering genuine behavioral change. However, as sophisticated threats like phishing, ransomware, and social engineering continue to evolve, organizations are shifting towards human-centric approaches that prioritize the human element of cybersecurity.

Employees are no longer passive recipients of training—they are frontline defenders, playing an active role in an organization’s security posture. By focusing on building awareness and embedding positive security behaviors into daily workflows, organizations can turn employees into a resilient line of defense against ever-changing cyber threats. This approach often involves working with an employer of record in Eastern Europe and other locations to ensure that remote employees follow cybersecurity guidelines accordingly.

Gartner has recognized this shift by introducing the Security Behavior and Culture (SBC) Program, which emphasizes the need to measure and influence employee behavior as a core part of security. Programs like these rely on Security Behavior and Culture Metrics to not only elevate awareness but also translate it into actionable behavior changes. For more details on these metrics and how they drive a stronger security culture, visit our blog: Security Behavior and Culture Metrics.

Understanding the distinction between Human Risk Management and traditional Security Awareness Programs is another critical step in adopting a human-centric approach. Human Risk Management Platform focuses on quantifying and mitigating employee-related risks, while security awareness builds foundational knowledge. To learn more about how these two approaches complement each other, explore our blog: Differences Between Human Risk Management & Security Awareness.

By combining these strategies, organizations can create a proactive defense that integrates employees as active participants in mitigating risk.

Outcome-Driven Metrics

Outcome-driven metrics are essential for measuring the effectiveness of Human Risk Management (HRM) strategies. They go beyond compliance, focusing on real-world outcomes such as behavioral changes, cultural shifts, and strategic alignment with organizational goals. These metrics enable organizations to track progress, identify vulnerabilities, and demonstrate the impact of their security initiatives.

Table 3: Outcome-Driven Metrics

By integrating outcome-driven metrics, organizations can create a compelling narrative of progress and align security initiatives with business objectives. For a deeper dive into these metrics and how they elevate security behavior and culture, visit our blog on Security Behavior and Culture Metrics.

Check out our blog to get further information on outcome-driven metrics.

HRM Unifies Fragmented Solutions

Fragmented security solutions often lead to unnecessary complexity, leaving gaps in protection and slowing response times.

Instead of juggling multiple tools for phishing simulations, security awareness training, and incident response, organizations can benefit greatly from a platform like Keepnet’s Human Risk Management solution.

By integrating diverse tools into one seamless system, Keepnet simplifies the process of managing security threats, reducing reliance on disconnected products.

This centralized approach not only eliminates redundancies but also allows for real-time analysis and reporting, ensuring your security team can identify and address vulnerabilities quickly.

With automation and built-in integrations, the platform can save up to 95% of the time spent on repetitive tasks, giving teams more capacity to focus on strategic initiatives.

An xHRM platform doesn’t just enhance operational efficiency—it also fosters smarter decision-making by providing a comprehensive view of human behavior and security behaviors.

For example, Keepnet’s Human Risk Management Platform consolidates data from phishing simulations like quishing and smishing alongside awareness training outcomes, creating an actionable human risk score for each employee. This score enables security teams to prioritize their efforts and reduce the risks of human error in real-world scenarios.

By unifying these capabilities under one system, organizations can streamline their approach to risk management, strengthen collaboration across departments, and ensure that their defenses are always one step ahead of cybercriminals.

Core Principles of Human Risk Management

Effective human risk management requires a strategic focus on mitigating risks stemming from human behavior, decisions, and interactions. Below are the core principles to guide your approach:

1. Understand Human Behavior

Human actions are influenced by cognitive biases, emotions, and social dynamics. Recognize patterns like overconfidence, groupthink, or stress-induced errors to anticipate and address risks proactively.

2. Foster a Risk-Aware Culture

Build an environment where employees prioritize risk awareness. Encourage open discussions about vulnerabilities and empower teams to report concerns without fear of blame.

3. Establish Clear Communication Channels

Miscommunication is a leading cause of human error. Ensure transparency in policies, expectations, and feedback loops to minimize misunderstandings and align actions with organizational goals.

4. Define Accountability and Responsibility

Clarify roles in risk management processes. Hold individuals and teams accountable for their decisions while promoting collective ownership of outcomes.

5. Prioritize Continuous Learning

Invest in regular training, simulations, and scenario-based learning. Adapt strategies based on past incidents and emerging trends in human behavior and technology.

6. Embed Ethical Leadership

Leaders must model integrity and ethical decision-making. Align risk management practices with organizational values to build trust and reduce misconduct.

7. Balance Technology with Human Judgment

Use tools like AI and analytics to monitor behavior and predict risks, but retain human oversight to contextualize data and avoid over-reliance on automation.

Benefits of Human Risk Management

Deploying a Human Risk Management (HRM) program is no longer a “nice-to-have” add-on to technical controls—it is the multiplier that lets every other layer of the stack deliver full value. Here’s what companies gain when they treat humans as a measurable, improvable security control rather than an unpredictable variable.

Table 4: Benefits of Human Risk Management

Bottom line: HRM is the rare initiative that checks every executive box—revenue protection, cost control, regulatory assurance and cultural resilience—while giving security teams the granular telemetry they need to out-maneuver threat actors who are betting on the next human mistake.

The Importance of Human Psychology and Nudge Theory in Human Risk Management

Effectively managing human risk requires a deep understanding of human psychology and leveraging nudge theory to influence behavior. Both disciplines offer insights into how individuals make security decisions and how organizations can guide them toward safer practices.

Psychology: Understanding Human Behavior in Security

Human psychology is central to addressing the vulnerabilities introduced by human behavior. As highlighted in Keepnet’s blog on behavioral science, cognitive biases significantly influence security decisions:

• Cognitive Biases: People often rely on mental shortcuts when making decisions, which can lead to security lapses. The optimism bias causes individuals to underestimate their vulnerability to cyber-attacks. The availability heuristic leads to a focus on familiar risks, ignoring less visible but equally critical threats.
• Emotional Factors: Stress, fatigue, and pressure can impair judgment, causing individuals to make hasty, risky decisions in high-pressure scenarios.
• Motivation and Incentives: Security behaviors improve when aligned with personal goals and organizational incentives, encouraging employees to follow best practices.
• Risk Perception: Individual risk assessments vary based on experiences, culture, and values, requiring tailored approaches to foster vigilance.
• Social Influence: Peer behaviors and organizational culture play a significant role. Leaders and colleagues who model strong security practices inspire similar actions among team members.

Nudge Theory: Subtle Influences for Safer Decisions

As explained in Keepnet’s guide on nudge theory, nudging involves creating subtle influences that encourage better security decisions without restricting choice. Key strategies include:

• Default Settings: Secure defaults, like mandatory strong passwords, encourage compliance without requiring active decisions.
• Framing: Presenting risks in terms of potential losses—such as the cost of a breach—motivates protective actions more effectively than abstract warnings.
• Social Proof: Highlighting high compliance rates within teams fosters positive peer influence and normalizes secure behaviors.
• Choice Architecture: Designing environments that promote security, such as placing reminders strategically or simplifying procedures, reduces resistance to safer actions.
• Feedback Loops: Immediate feedback, such as alerts for risky behavior or recognition for good practices, reinforces positive habits and corrects mistakes quickly.

Keepnet Extended Human Risk Management Platform

The Keepnet Extended Human Risk Management Platform is a unified solution designed to simplify managing risks associated with human behavior in organizations. By integrating security awareness training, phishing simulations, and advanced incident response tools into a single platform, Keepnet empowers businesses to address social engineering attacks, improve employee awareness, and strengthen overall security defenses.

Advanced Analytics for Behavioral Impact

Keepnet empowers you with analytics and reporting tools that go beyond engagement metrics. These tools measure behavioral changes and assess their direct impact on reducing organizational risks.

Actionable Data Insights

Keepnet’s metrics provide in-depth analysis of cybersecurity patterns, root causes, and high-risk areas. This ensures that Security Behavior and Culture Program (SBCP) efforts are strategically targeted where they are needed most.

Aligning Goals with Protection Level Agreements (PLAs)

With Keepnet’s support, you can create and monitor PLAs, aligning security objectives with executive expectations. These frameworks enable them to demonstrate how initiatives mitigate employee-driven risks and drive measurable business outcomes.

Data-Driven Storytelling

Keepnet’s integrated platform equips managers with tools to craft compelling, business-focused narratives. By leveraging data, they can illustrate benefits such as reduced operational costs, enhanced productivity, and revenue protection to gain stakeholder buy-in.

Human Risk Score

HRM platforms look at how employees act. They create a human risk score by checking responses to fake attacks. These include phishing tests and other activities that copy real cyber threats. This score provides a clear, actionable benchmark for identifying employees who may need additional training.

For example, the Keepnet Human Risk Management Platform offers advanced features to monitor, test, and enhance employee awareness. This enables the security team to focus on improving the organization’s overall resilience to threats. By taking proactive measures, organizations can turn weaknesses into opportunities for building stronger, more secure teams.

Customized Security Culture Programs

Keepnet enables organizations to design tailored training and interventions, providing employees with personalized support to nurture lasting security-conscious behaviors and strengthen the organization's overall risk posture.

Simplify Human Risk Management

Keepnet’s platform consolidates various tools for combating business email compromise (BEC), spear-phishing, ransomware, and other social engineering threats. This streamlined approach reduces complexity, saving organizations up to 95% of the time compared to using fragmented tools.

Comprehensive Phishing Simulations

The Keepnet Human Risk Management platform offers diverse phishing simulation products to train employees across multiple attack vectors:

• Email Phishing Simulation: Mimics real-world phishing attacks to educate employees on spotting malicious emails.
• Voice Phishing (Vishing) Simulation: Tests employees’ ability to handle fraudulent calls.
• SMS Phishing (Smishing) Simulation: Sends simulated malicious text messages to evaluate employee responses.
• MFA Phishing Simulation: Assesses how employees react to simulated multi-factor authentication phishing attempts.
• QR Code Phishing (Quishing) Simulation: Trains users to recognize and avoid malicious QR codes.
• Callback Voice Phishing Simulation: Tests employee responses to callback phishing scenarios.

Security Awareness Training

Keepnet provides one of the largest security awareness training libraries, with content from over 12 leading vendors. It includes:

• Interactive games, videos, and detailed courses in multiple languages.
• Gamified leaderboards to boost employee engagement.
• Training delivery via SMS for employees without regular email access.
• Auto-pilot training programs customized to an organization’s needs.

Advanced Incident Response and Forensics

Keepnet’s AI-driven incident response tools allow organizations to detect, analyze, and mitigate email threats in minutes. Key features include:

• Phishing Reporter Add-In for employees to flag suspicious emails directly from their inbox.
• Seamless integrations with Office 365, Google Workspace, and third-party tools for automated investigations.
• Access to over 20+ analysis engines like Sandboxes and threat intelligence feeds for deeper insights.

Why Choose Keepnet Human Risk Management?

According to Gartner, 80% of CISOs prefer unified security platforms to streamline operations. With its user-friendly interface, automated workflows, and comprehensive capabilities, Keepnet is the go-to solution for managing human risks effectively.

Ready to strengthen your defenses? Explore the platform today and take your human risk management strategy to the next level!

Editor's Note: This article was updated on June 23, 2025.