

Below, I demonstrate how to resolve this on Mac OS X Yosemite (10.10.1) by updating the security settings.

This new default, although enabled for security reasons, presents challenges for those simply wanting to run unsigned applets they trust locally on their PC or those developing applets or just learning how to code who want to run applets for quick testing. Selecting the Medium security level is not recommended and will make your computer more vulnerable should you run a malicious application. All other applications are allowed to run with security prompts. Only unsigned applications that request all permissions are blocked. Medium (removed from Java 8 Update 20 and later versions) Applications are also allowed to run with security prompts when the revocation status of the certificate cannot be checked. Applications that are signed with a valid or expired certificate and include the Permissions attribute in the manifest for the main JAR file are allowed to run with security prompts. This is the minimum recommended (and default) security level setting. All the applications that are signed with a valid certificate and include the Permissions attribute in the manifest for the main JAR file are allowed to run with security prompts.

This is the most restrictive security level setting. These security levels are described on the website as stated below. Now, with Java 8u20 and later, only High and Very High levels are available. Prior, changing the setting to Medium would quickly resolve issues where certain unsigned Java applets would not run. Starting with Java 8 Update 20 (Java 8u20) and later versions the option to lower the security setting in the Java Console Panel to Medium has been removed.
