teceem: I guess I don't get it... how can software that's used locally be a security exploit?
In the case of stuff like 7z:
Create an archive with malicious code and a way that unpacking that archive crashes 7z in a way that the next instruction pointer of the CPU points at the malicious code already in memory. Exploits like this are really the bread-and-butter of hacking. Stuff like that has hit multiple archivers in the past, image viewers, anti-virus (also often with an unpacking crash hack - and esp. malicious since AV has system rights).
Also most rootings of game consoles worked with stuff like that: Controlled crashing of the original bootloader/OS to inject your own code.