Self modifying code is not a security issue in and of itself, but it requires memory that is writable and executable (though, not necessarily at the same time). This is usually a bad idea because it makes arbitrary code execution much easier if your code has unrelated bugs in it, because it provides attackers a place to write shellcode and get it to run.

There's a security feature called W^X [0] (also called DEP in Windows). Basically you can use special mode which prevents memory pages to be writeable and executable at the same time, so self-modifying code is not allowed, but it prevents exploits from modifying memory containing executable code. OpenBSD uses it as well.

0: https://en.wikipedia.org/wiki/W%5EX

Some (most?) of the problems with c stem from not checking array bounds.

Now if you break out of an array bound in read only memory, you cant do much damage, but what happens if you could rewrite the code to do what you want?

Theres also the issue that you can have viruses that hide what they're doing until they actually run, so virus scanners cant pick them up.

I'm no expert. There maybe other classes of attack.