From my experience full security and application log won’t fail the server. But when system log is full we can’t remote the server and can’t access shares.
what you want to ask, what do you mean by log rotation??
getting the event log full would not fail the server. But users other than local administrator will not be able to login to the server.
in event logs you can increase the log storage size and keep the logs for long period.
you can define overwrite as and when logs get full.
you can define the period after which the logs should get overwrite.
or you can define to store all the logs but this will need more space to store.
Go to computer management –> Click on Event Viewer –> Right click security logs –> go to properties –> in general you will find the options.