Passwords must not be sent through email in plain text. Passwords must not be stored in plain text on any electronic media. It is acceptable to store passwords in a file if it is encrypted with PGP or equivalent strong encryption (once again depending on your organization policy). All vendor supplied default passwords must be changed.

The level of logging will be according to your company requirements. Below is a list of items that could be logged, please note that some of the items may not be applicable to all operating systems. What is being logged depends on whether you are looking for performance problems or security problems. However you have to be careful about performance problems that could affect your security.

Risk acceptance is the practice of accepting certain risk(s), typically based on a business decision that may also weigh the cost versus the benefit of dealing with the risk in another way.
For your exam you should know below information about risk assessment and treatment:
A risk assessment, which is a tool for risk management, is a method of identifying vulnerabilities and threats and assessing the possible impacts to determine where to implement security controls. A risk assessment is carried out, and the results are analyzed. Risk analysis is used to ensure that security is cost-effective, relevant, timely, and responsive to threats. Security can be quite complex, even for well-versed security professionals, and it is easy to apply too much security, not enough security, or the wrong security controls, and to spend too much money in the process without attaining the necessary objectives. Risk analysis helps companies prioritize their risks and shows management the amount of resources that should be applied to protecting against those risks in a sensible manner.
A risk analysis has four main goals:
Identify assets and their value to the organization.
Identify vulnerabilities and threats.
Quantify the probability and business impact of these potential threats.
Provide an economic balance between the impact of the threat and the cost of the countermeasure. Treating Risk
Risk Mitigation Risk mitigation is the practice of the elimination of, or the significant decrease in the level of risk presented. Examples of risk mitigation can be seen in everyday life and are readily apparent in the information technology world. Risk Mitigation involves applying appropriate control to reduce risk. For example, to lessen the risk of exposing personal and financial information that is highly sensitive and confidential organizations put countermeasures in place, such as firewalls, intrusion detection/prevention systems, and other mechanisms, to deter malicious outsiders from accessing this highly sensitive information. In the underage driver example, risk mitigation could take the form of driver education for the youth or establishing a policy not allowing the young driver to use a cell phone while driving, or not letting youth of a certain age have more than one friend in the car as a passenger at any given time.
Risk Transfer Risk transfer is the practice of passing on the risk in question to another entity, such as an insurance company. Let us look at one of the examples that were presented above in a different way. The family is evaluating whether to permit an underage driver to use the family car. The family decides that it is important for the youth to be mobile, so it transfers the financial risk of a youth being in an accident to the insurance company, which provides the family with auto insurance. It is important to note that the transfer of risk may be accompanied by a cost. This is certainly true for the insurance example presented earlier, and can be seen in other insurance instances, such as liability insurance for a vendor or the insurance taken out by companies to protect against hardware and software theft or destruction. This may also be true if an organization must purchase and implement security controls in order to make their organization less desirable to attack. It is important to remember that not all risk can be transferred. While financial risk is simple to transfer through insurance, reputational risk may almost never be fully transferred.
Risk Avoidance Risk avoidance is the practice of coming up with alternatives so that the risk in question is not realized. For example, have you ever heard a friend, or parents of a friend, complain about the costs of insuring an underage driver? How about the risks that many of these children face as they become mobile? Some of these families will decide that the child in question will not be allowed to drive the family car, but will rather wait until he or she is of legal age (i.e., 18 years of age) before committing to owning, insuring, and driving a motor vehicle. In this case, the family has chosen to avoid the risks (and any associated benefits) associated with an underage driver, such as poor driving performance or the cost of insurance for the child. Although this choice may be available for some situations, it is not available for all. Imagine a global retailer who, knowing the risks associated with doing business on the Internet, decides to avoid the practice. This decision will likely cost the company a significant amount of its revenue (if, indeed, the company has products or services that consumers wish to purchase). In addition, the decision may require the company to build or lease a site in each of the locations, globally, for which it wishes to continue business. This could have a catastrophic effect on the company's ability to continue business operations
Risk Acceptance In some cases, it may be prudent for an organization to simply accept the risk that is presented in certain scenarios. Risk acceptance is the practice of accepting certain risk(s), typically based on a business decision that may also weigh the cost versus the benefit of dealing with the risk in
another way.
For example, an executive may be confronted with risks identified during the course of a risk
assessment for their organization. These risks have been prioritized by high, medium, and low
impact to the organization. The executive notes that in order to mitigate or transfer the low-level
risks, significant costs could be involved. Mitigation might involve the hiring of additional highly
skilled personnel and the purchase of new hardware, software, and office equipment, while
transference of the risk to an insurance company would require premium payments. The
executive then further notes that minimal impact to the organization would occur if any of the
reported low-level threats were realized. Therefore, he or she (rightly) concludes that it is wiser for
the organization to forgo the costs and accept the risk. In the young driver example, risk
acceptance could be based on the observation that the youngster has demonstrated the
responsibility and maturity to warrant the parent's trust in his or her judgment.
The following answers are incorrect:
Risk Transfer - Risk transfer is the practice of passing on the risk in question to another entity,
such as an insurance company. Let us look at one of the examples that were presented above in a
different way.
Risk Avoidance - Risk avoidance is the practice of coming up with alternatives so that the risk in
question is not realized.
Risk Mitigation - Risk mitigation is the practice of the elimination of, or the significant decrease in
the level of risk presented.
The following reference(s) were/was used to create this question:
CISA Review Manual 2014 Page number 51
and
Official ISC2 guide to CISSP CBK 3rd edition page number 534-539

The activity that best identifies operational problems, security misconfigurations, and malicious attacks is periodic log reviews. Log reviews are the process of examining and analyzing the records of events or activities that occur on a system or network, such as user actions, system errors, security alerts, or network traffic. Periodic log reviews can help to identify operational problems, such as system failures, performance issues, or configuration errors, by detecting anomalies, trends, or patterns in the log data. Periodic log reviews can also help to identify security misconfigurations, such as weak passwords, open ports, or missing patches, by comparing the log data with the security policies, standards, or baselines. Periodic log reviews can also help to identify malicious attacks, such as unauthorized access, data breaches, or denial of service, by recognizing signs of intrusion, compromise, or exploitation in the log data. The other options are not the best activities to identify operational problems, security misconfigurations, and malicious attacks, but rather different types of activities. Policy documentation review is the process of examining and evaluating the documents that define the rules and guidelines for the system or network security, such as policies, procedures, or standards. Policy documentation review can help to ensure the completeness, consistency, and compliance of the security documents, but not to identify the actual problems or attacks. Authentication validation is the process of verifying and confirming the identity and credentials of a user or device that requests access to a system or network, such as passwords, tokens, or certificates. Authentication validation can help to prevent unauthorized access, but not to identify the existing problems or attacks. Interface testing is the process of checking and evaluating the functionality, usability, and reliability of the interfaces between different components or systems, such as modules, applications, or networks. Interface testing can help to ensure the compatibility, interoperability, and integration of the interfaces, but not to identify the problems or attacks.
References: CISSP All-in-One Exam Guide, Eighth Edition, Chapter 7, p. 377; Official (ISC)2 CISSP CBK Reference, Fifth Edition, Chapter 7, p. 405.