What is a major risk of storing the Server Key on the local file system?

Storing the Server Key on the local file system poses a significant risk primarily due to the increased potential for reverse engineering by attackers. When sensitive keys are stored on a local file system, they may be more easily accessed by malicious actors who can exploit vulnerabilities in the system. Once an attacker gains access to the file system, they can potentially retrieve the Server Key, giving them the ability to compromise the security of the environment by decrypting sensitive information or impersonating legitimate services.

In contrast, increased system performance, faster recovery operations, and enhanced key management do not directly pertain to the risks associated with storing critical security materials locally. These options mislead regarding the security implications, as the trade-off between performance or operational efficiency and security can create vulnerabilities rather than mitigate them. Key management best practices generally advocate for storing sensitive keys in secure environments that provide encryption, access controls, and monitoring, rather than in locations that might be exposed to unauthorized access.