In order to fully exploit the concept of the Smart Home, challenges associated with multiple device management in consumer facing applications have to be addressed. Specific to this is the management of resource usage in the home via the improved utilisation of devices, this is achieved by integration with the wider environment they operate in. The traditional model of the isolated device no longer applies, the future home will be connected with services provided by third parties ranging from supermarkets to domestic appliance manufacturers. In order to achieve this risk based integrated device management and contextualization is explored in this paper based on the cloud computing model. We produce an architecture and evaluate risk models to assist in this management of devices from a security, privacy and resource management perspective. We later propose and expansion on the risk based approach to wider data sharing between the home and external services using the key indicators of TREC (Trust, Risk, Eco-efficiency and Cost). The paper contributes to Smart Home research by defining how Cloud service management principles of risk and contextualization for virtual machines can produce solutions to emerging challenges facing a new generation of Smart Home devices.