Security manager is a online page on http://www.macromedia.com website which provides interface to save your security settings. When you run a flash file on local system it will ask for permissions to run the active content and you need to add your local hard disk path to security managers to allow run flash on local computer. YOu can also store your trusted websites in it. You need not to implement it , its just settings.

See the following link to settings or security manager

http://www.macromedia.com/support/documentation/en/flashplayer/help/settings_manager04.html