Why is autologon in Windows 7 a security risk

That's the security risk it is referring to - anyone who obtains physical access to the machine is able to log on and access any of your data. If your computer is in a safe place and that isn't an issue for you, there's no need to worry about it!

No, remote hackers won't be able to do anything more than they otherwise could. The risk is only local, as you already mentioned.

If your computer is on your desk at home and you know who is around, then use autologin.

If it's a laptop and/or work computer then don't use autologin.

Aside from the obvious risk that someone can walk up to your computer and use it, there is another minor security risk. When you set autologon, your password is now on the computer. It is encrypted and theoretically safe, but there's always a chance that it can be discovered.

The #1 security risk for companies is insiders. Often it is dissatisfied employees. Let's think of you personally as a company. Ever had a friend go to the dark side and start abusing you in some way. Why wouldn't that person wreck your computer or steal your data.

Now to this thought about it (your data) being encrypted being security. From inside your computer as a legitimate user, it's not encrypted. That's why you can use it.

So, let's do steps on how you might get hacked: 1. I decide I hate you 2. I am nice to you so you won't cut me off 3. I logon and change your password. You'll never know because you don't use it anyway. 4. I remote your computer as you. 5. Now I can do evil things to you to my heart's content...

So, yes! I'm saying that you are taking a risk.