In this work, a complete framework on the Dynamic Risk Assessment (DRA) is applied to one of the most prominent examples of conjunction of physical and digital worlds – smarthomes. Stipulated by the studies on the challenges associated with the mobile properties of the IoT objects, we have conceptualised the representation of the generic object model – IoT Stack – and applied it to the DRA. Governed by the evolving user and functional requirements, we have designed a complete workflow from data capture and network analysis to anomaly detection and operational DRA, deployed in real environments. The framework was further extended with the usability focused visualisation of the user interfaces to support automated decision-making for the mitigation of the confronted risks. Automation, not always being possible or even desirable by lay users, due to their risk perception, proved to be of crucial importance in the decision-making process.