any risk to umask to 000?

[batchas]

if I do not set the unmask parameter in the admin settings to 000, I am not able to use the file manager to add any folder and upload any image to it for the ABFlashGallery for instance.
when I set it to 000 I am finally able to upload something as the permissions on the server are set to 777 (if set top 755 it still does not work).
my question:
is there any server security risk to set unmask to 000?