To configure the email first you need to configure the mail server setting on SEPM
https://www-secure.symantec.com/connect/forums/sepm-not-sending-email-notifications
Configure SEPM to connect to the email server:
- In the Symantec Endpoint Protection Manager console, click Admin.
- Click Server panel.
- Select the Management Server for which you wish to configure the email server and go to Edit Server Properties..
- In the Server Properties dialog box, click the Mail Server tab.
- Enter the Server Address, which would be an IP address, host name, or domain name of the email server.
- Enter the Port Number for the email server that sends the notifications.
- Enter the User name of the account on the email server. If you want to configure administrator email notifications, you should use the format user@domain in this text box. If the text box is left blank, SYSTEM@computer name sends the notifications.
- Enter a Password of the account on the email server. This field is mandatory if the email server requires authentication
After that you need to create the notification of the events.
Below link help to guide you about how to create notification
http://www.symantec.com/business/support/index?page=content&id=HOWTO55089#v17108849
Below link help to guide you about how to notification work
http://www.symantec.com/business/support/index?page=content&id=HOWTO55051#v15703905
Below link help to Managing notifications
http://www.symantec.com/business/support/index?page=content&id=HOWTO55083