What Is Human Risk Management?

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 2023 Verizon Data Breach Investigations Report revealed that human error contributed to over 80% 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 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 Security Awareness Towards 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.

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.

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 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.

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 1: 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.

Unifying Fragmented Solutions for Enhanced Efficiency

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 unified 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.

A unified HRM 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 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.

Benefits of Human Risk Management:

• Reduced Risk of Cyber Incidents: Proactively identifying and addressing vulnerabilities minimizes the chances of successful attacks.
• Increased Employee Resilience: Regular training and simulations build employee confidence in handling cyber threats.
• Regulatory Compliance: Meeting industry standards for security awareness training ensures compliance with regulations like GDPR or HIPAA.
• Improved Organizational Security Posture: A well-informed workforce strengthens the overall security ecosystem.

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

Human Risk Management Solution 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 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 Solution and traditional risk management differ in their focus and approach to mitigating risks within organizations. These differences highlight why 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 core differences between Human Risk Management and Security Awaraneess Training Programs

Common Challenges in Implementing Human Risk Management

Implementing Human Risk Management can significantly enhance an organization’s security posture, but it comes with its own set of challenges. These challenges often stem from the complexities of addressing human behavior and fostering a culture of accountability. By understanding and proactively tackling these hurdles, organizations can create a more effective and sustainable HRM strategy.

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:

Table 2: How To Build an Effective Human Risk Management Framework

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 Unified 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.

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 blog is updated on 27th December, 2024.