Techniques are described for managing risk in a network that includes one or more Internet-of-Things (IoT) devices. Management module(s) may operate to determine a model for an IoT in a home, office, or other environment, the model describing typical operations of the device(s) that are connected over an IoT. The operations of the IoT devices may be monitored for compliance with the model. The management module(s) may detect instances when one or more IoT devices exhibit behaviors that are a deviation from the normal operations indicated in the model, such as device failures. A policy may operate (e.g., as a smart contract) to transfer value to a user account in response to detecting an operational deviation of IoT device(s).