First you need to activate the password reset. This is done by following these steps:
Once the service is activated you may configure the service:
Email template
The password reset email sent to the user is based on a email template that uses the Email service (read more about the email service here). When the password reset service was activated a default email template was created. To modify the email template follow the instructions here. For a full list of all the values supplied to the email template read this article.
Complexity
Set the complexity of the password reset code.
When you are done click on the SAVE button to save your changes.