I had a similar problem, no matter what Kane's Wrath would not start,
"A required security module can not be activated. This program can not be executed. Error 8016" message appears
After a lot of research the problem turned out to be very exotic and messed up.
Many days and attempts later I got Kane's Wrath to work.
Here was my solution.
Gigabyte Z170 motherboard, updated bios to fix CPU microcode version F7g beta. This is intended to fix latest gen skylake processor issue with older games. Not only windows security update messes with DRM, but also skylake CPU can lead to very similar problem.
Installed ancient release of windows 7 32 bit, without any recent patches or updates. This z170 motherboard and skylake 6700k is so messed up, that USB/DVD install never worked for me, regardless of which drivers I provide for it. I used IMAGEX to unfold the windows install.wim image.
64 bit is supposedly messy, haven't got my 64bit install to work yet.
Finally, this was not enough, another issue with intel management inf, which manages storage and chipsets, such as SATA, ACHI, xCHI, etc. Some reports say there are CD/DVD issues with other recent video games, the cause is this storage management software. So as long as the system works without it, relying on default windows drivers, I did not install intel chipset utility.
Finally, you may need to manually install old directx 9.x components supplied on the original DVD to get the game working.
Short -
Pre 2012 WIN 7 32 bit new install
latest BIOS update for z170 skylake issue
Not installed intel storage management drivers
mandatory direct x9 components installation