Log management is the process of collecting, analyzing, and storing logs to help organizations optimize application performance. It involves five key steps: collection, centralized storage, analysis, reporting and alerting, and action. Effective log management provides several benefits, including troubleshooting, performance optimization, security, and compliance. However, it also poses challenges such as lack of standardization, high log volume, limited context, and storage limitations. To overcome these challenges, organizations can implement best practices such as automating log collection and analysis using tools, standardizing log formats, converting logs to a common format, contextualizing log data, configuring effective log levels, and collecting log data in real-time. There are various types of log management tools available, including log collection tools, log analysis tools, log visualization tools, and log rotation tools.