All software contains bugs. Often, these bugs can result in a vulnerability that can expose your system to malicious users. Unpatched systems are a common cause of computer intrusions. You should have a plan to install security patches in a timely manner to close those vulnerabilities so they cannot be exploited.
For home users, security updates should be installed as soon as possible. Configuring automatic installation of security updates is one way to avoid having to remember, but does carry a slight risk that something can cause a conflict with your configuration or with other software on the system.
For business or advanced home users, security updates should be tested and scheduled for installation. Additional controls will need to be used to protect the system during the time between the patch release and its installation on the system. These controls would depend on the exact vulnerability, but could include additional firewall rules, the use of external firewalls, or changes in software settings.