The best strategy of managing risks is to develop a business environment that minimizes: (1) the probability of the event occurring, and (2):

the impact of the event if it does occur.

Here are the steps to develop such a business environment:

1. Identify the Risks: The first step in managing risks is to identify potential risks. This can be done through brainstorming sessions, SWOT analysis, or historical data.

2. Analyze the Risks: Once the risks are identified, analyze them to understand their potential impact and the probability of their occurrence. This can be done using risk assessment tools or techniques like risk matrix, risk probability and impact assessment, etc.

3. Prioritize the Risks: Based on the analysis, prioritize the risks. The risks with high impact and high probability should be given the highest priority.

4. Develop Risk Response Strategies: For each risk, develop a strategy to manage it. This could be avoiding the risk, mitigating the risk (reducing the probability or impact), transferring the risk, or accepting the risk.

5. Implement the Strategies: Implement the risk response strategies. This could involve changes in business processes, investing in new technologies, training employees, etc.

6. Monitor and Review: Regularly monitor and review the risks and the effectiveness of the risk response strategies. Make necessary adjustments as required.

By following these steps, a business can develop an environment that minimizes the probability of the event occurring and the impact of the event if it does occur.