It should be called a privacy issue or something like that. I think the CEO wanted to avoid having his platform deemed insecure as in has security holes.
The Indian government was asking for a backdoor into the system. That's more of a security issue than privacy.
As that isn't the case, then it's a privacy issue because the Indian government demanded RIM put in a backdoor for reasons or surveillance of its population.
Does this privacy issue potentially lead to a security issue? Yes, but not for RIM, but rather for it's users that depend on the privacy of RIM's service over which they may transmit sensitive information.