I regularly read Stratfor’s Geopolitical Weekly. It’s a fascinating glimpse into the world of foreign policy risk management. Take this week’s issue for example. George Friedman analyzes the stalemate between the U.S. and Iran over Iran’s nuclear ambitions.

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In the article, George writes about an Iranian incursion into Iraqi territory (which I hadn’t even heard about) and how it relates to Iran’s strategy for dealing with the U.S. demand to abandon its nuclear program. He provides a detailed analysis of the situation, the risks to each country, the possible consequences and the potential options for how each country might respond to those risks. Does the process sound familiar? It should. It’s the risk management process we’ve been talking about – identify risks, evaluate risks and plan for risks.

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Every time I read one of Stratfor’s articles, I can’t help but wonder how many analysts are working for the U.S. government on these types of analyses. I’m sure the number would scare me. And then I think about how many analysts are working for the other major countries of the world. No doubt it is a very large number indeed – a good thing in my opinion. I shudder at the thought of politicians making world-changing decisions based on gut-feel.

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Risk management plays a critical role in global life and the interactions between countries. It should play a critical role in your business life and the interactions with your stakeholders (customers, employees, financiers, et al.). The process is exactly the same, only the sophistication of the evaluation techniques differ. The decisions the world’s politicians make could change the world for all of us. The decisions you make in your business are world-changing for you and your stakeholders (granted, a smaller scale, but pretty damn important to your stakeholders, don’t you think?). Shouldn’t those decisions get the benefit of the same risk management process?

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Do you see the parallel? Do you agree or disagree? I dare you to share your opinion….

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p.s. I promise to get back to the how-to’s of the risk management process – how to plan for your risks – next week.