What Is Human Risk Management?

Human Risk Management (HRM) refers to the process of identifying, assessing, and mitigating 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 even oversights can lead to vulnerabilities.

The urgency for organizations to adopt HRM practices is evident. The 2023 Verizon Data Breach Investigations Report revealed that human error contributed to over 80% of security incidents. This shows 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 Does Human Risk Management Mean?

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.

The Evolution of Risk Management Towards Human-Centric Approaches

Traditional risk management strategies often emphasize operational risks, such as system downtime or external attacks. However, the increasing frequency of threats like phishing and ransomware has pushed organizations to prioritize the human element of risk management. Employees are no longer just users of technology—they are critical participants in an organization’s defense strategy.

For instance, adopting tools like a phishing simulator not only identifies employee vulnerabilities but also provides actionable insights to improve their response capabilities.

Why Human Risk Management Is Important for Organizations

Human Risk Management is significant because people play a major role in an organization’s success—and its vulnerabilities. Whether it’s an employee clicking on a phishing email, using a weak password, or mishandling sensitive data, human behavior often opens the door to risks. Studies show that over 80% of security breaches involve some form of human error, making it one of the biggest threats businesses face today.

By implementing HRM, 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.

The Role of Human Behavior in Organizational Risks

Whether it’s an employee clicking on a malicious link or using a weak password, human behavior remains one of the biggest cybersecurity risks. Tackling these risks through security awareness training ensures that employees are educated about threats like vishing and quishing, which are becoming increasingly prevalent.

How Neglecting Human Factors Amplifies Risks

Neglecting the human side of risk can lead to devastating outcomes. In one real-world example, a well-known UK bank suffered a data breach due to a simple employee error, resulting in fines and lost customer trust. Such incidents highlight why enterprises need to implement proactive measures like human factor risk management to safeguard their operations.

By integrating training solutions and tools like the Keepnet Human Risk Management Platform, organizations can address these vulnerabilities effectively while fostering a risk-aware culture.

Core Principles of Human Risk Management

HRM is built on key principles that help organizations address risks tied to human behavior effectively. Here are the core elements:

Identifying Human-Related Risks

The first step in human resource risk management involves identifying behaviors and situations that pose a threat to the organization. This includes negligence, insider threats, and lack of awareness. Tools like email threat simulators can be instrumental in pinpointing where these risks are most likely to occur.

Mitigating Human Error Through Policies and Training

To combat human error, organizations need clear policies combined with ongoing education. For example, implementing security awareness training for employees can help reduce the likelihood of mistakes like falling for a phishing attack.

The Role of Leadership in Human Risk Management

Strong leadership plays a critical role in embedding a culture of security. Leaders who prioritize risk management encourage employees to take cybersecurity seriously. In fact, integrating HRM into broader enterprise risk management human resources plans ensures that risk awareness becomes a shared responsibility across all levels.

Key Differences Between Human Risk Management and Traditional Risk Management

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

Focus on Behavioral Risks vs. Operational Risks

Traditional risk management deals with tangible, operational risks such as system outages or equipment failures. On the other hand, human resource risk management focuses on intangible risks caused by human decisions and behaviors. This shift emphasizes the importance of educating employees and creating a culture of accountability.

Addressing Psychological and Cultural Factors

A unique aspect of HRM is its focus on psychological and cultural factors. For example, employees working under high stress are more prone to making mistakes. Incorporating initiatives like mental health support and frequent communication can help reduce these risks.

Explore more about human error’s impact on cybersecurity breaches.

Common Challenges in Implementing Human Risk Management

Resistance to Change Among Employees

Change management is a significant hurdle when implementing human resource risk management plans. Employees may view additional training or policies as burdensome. To overcome this, organizations should use interactive and engaging tools, such as gamified phishing simulations, to make the process more appealing.

Difficulty in Measuring Human-Related Risks

Unlike technical vulnerabilities, human-related risks are harder to quantify. Leveraging analytics-driven solutions like risk dashboards can provide valuable insights into employee behavior and risk patterns.

How To Build an Effective Human Risk Management Framework

To successfully implement human element risk management, organizations should follow these steps:

1. Assess Risks: Use tools such as threat simulators to evaluate vulnerabilities.
2. Develop Policies: Clearly outline acceptable behaviors and security protocols in employee handbooks.
3. Conduct Training: Regularly provide targeted security awareness training to empower employees.
4. Monitor Progress: Use KPIs and data analytics to measure the effectiveness of your HRM strategies.
5. Create a Security-First Culture: Promote open dialogue about security challenges and reward positive behaviors.

By aligning HRM with broader business goals, companies can significantly reduce risks while ensuring long-term operational resilience.

For deeper insights into this process, explore our blog on The Evolution of Security Awareness.

Use Keepnet Human Risk Management Platform

The Keepnet 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.

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.

Regulatory Compliance Simplified

The platform also helps organizations meet compliance requirements for standards like GDPR, HIPAA, and CCPA by offering tools to assess, report, and reduce human-related risks.

Unified Approach for Better Security

By unifying tools and automating repetitive tasks, Keepnet allows organizations to:

• Reduce their human risk score by up to 90%.
• Quickly respond to threats with 48.6x faster analysis.
• Avoid gaps caused by fragmented security solutions.

Why Choose Keepnet?

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!