sentences: Enforcing security in Internet of Things environments has been identified as one of the top barriers for realizing the vision of smart, energy-efficient homes and buildings. In this context, understanding the risks related to the use and potential misuse of information about homes, partners, and end-users, as well as, forming methods for integrating security-enhancing measures in the design is not straightforward and thus requires substantial investigation. A risk analysis applied on a smart home automation system developed in a research project involving leading industrial actors has been conducted. Out of 32 examined risks, 9 were classified as low and 4 as high, i.e., most of the identified risks were deemed as moderate. The risks classified as high were either related to the human factor or to the software components of the system. The results indicate that with the implementation of standard security features, new, as well as, current risks can be minimized to acceptable levels albeit that the most serious risks, i.e., those derived from the human factor, need more careful consideration, as they are inherently complex to handle. A discussion of the implications of the risk analysis results points to the need for a more general model of security and privacy included in the design phase of smart homes. With such a model of security and privacy in design in place, it will contribute to enforcing system security and enhancing user privacy in smart homes, and thus helping to further realize the potential in such IoT environments.