FreeBSD Applying Security Updates Using pkg/freebsd-update

Originally published at: https://www.cyberciti.biz/faq/freebsd-applying-security-updates-using-pkg-freebsd-update/

I am a new FreeBSD developer and user. I have root access to my VM running in AWS cloud. How do I update packages and apply security upgrades on FreeBSD? What is the procedure for applying security updates on FreeBSD?