Yes there should. In this case, two. They are recessed as in the photo d_r kindly posted, and usually have some lube on them; so maybe you just missed them? Or they may have been omitted during assembly
But they won't be excessivley hard to undo, unless as bryan said they used some form of thread lock (although I don't know why they would do this, thread lock is designed to prevent threads loosening, not keep them watertight, and since you have to rotate the head to switch the light on and off... no reason for it)
No. A radial o-ring would be the one in the groove at right angles to the axis of the torch. An axial o-ring would be aligned with the axis. Which wouldn't help much in this example