I doubt ambushes spawn in the central square, it's just where the ambushers are detected, provided they are ambushers, rather than siegers (ambushers are sneakers, and thus won't be discovered when they enter the map, but only when a dwarf (or tame animal) detects them). I've never seen any ambush, and they are thought to be incredibly rare. Kobold thieves are not that uncommon, though, although they are not much of a risk physically. Thieves can steal things, though, which is annoying.
Your town is completely insecure, in that it's completely open to access, so a rampaging Titan will get its fill of carnage.
Typically you dig down under ground to create safety, but if you want to build above ground for e.g. role playing reasons, that's valid, but more dangerous.
You'd secure your town by building a wall at least 2 tiles high with a further wall jutting out two tiles on top of that (i.e. build a floor out from the top of the wall, and then a wall outside of that. You have to build a temporary floor to be able to access the corner tiles). That wall should keep all walking and climbing enemies at bay. Obviously you will want to have raising drawbridges in the wall to allow access to the outer world (caravans, migrants, tree chopping, ...). Also note that you ought to secure the shore as well.
All of this is not safe, though, because there are flying threats as well, and if you want to be secure against those you'll have to put a roof over all of your town.
Flying pests, such as Keas, can steal things and grind activities to a halt with their pestering of your dwarves, as well as leading to a lot of unhappy thoughts.