Upload failed - Security risk??

I just tried uploading a file through my file manager in DA. It failed with a message to ensure that /home/tmp is created and chmod'd to 1777.

I found a post to add

modify tmpdir=/tmp

to my directadmin.conf file and restart.

I did that but I still got the error.

I then created /home/tmp and chmod'd it to 1777

It worked find, upload successful.

However.... Is this a security risk? When hardening my server, I read many things that said /tmp should not be executable. Having it set to 1777, isn't that a risk?