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We use Hikvision cameras and with that comes LocalServiceControl.exe which needs to be running to see video streams from cameras in a web browser. This exe requires to be run as local admin which is weird.

Attempts to workaround this bevhavior - either by granting additional privileges to an account or by running as invoker - failed.

There is a discussion on the topic here.

What would you recommend from a security point of view?

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    We can't possibly determine whether a random binary might contain a backdoor. So, let's refocus the question.
    – schroeder
    Nov 24 at 9:24

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The risks here are that the program will provide access to sensitive information stored on the machine and use the machine to access the rest of your network. From a security point of view, both of these can be mitigated:

  • Don't run anything or store anything on the machine except what is not sensitive. Use a VM, a container, or some other type of sandbox approach so that if the program is malicious, it doesn't really matter.
  • Isolate the sandbox from the rest of your network. Set up a side network just for this sandbox and only allow it access to what it absolutely needs and nothing more. Keep watch on what the sandbox does to identify any odd or suspicious behavior.

It's best if you don't run potentially malicious programs at all, but if you have to, you can do a lot to contain the impact if something goes wrong.

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