1. The Walt Disney Company Risk Finance and Risk Management Strategy
Tim East
Director, Risk Management

2. Organization of The Walt Disney Company
Corporate
Media
Networks
Distribution of
Content
Theme Parks
and
Resorts
11 Theme
Parks and
Consumer
Products
Licencing
and
Retail
Studio
Entertainment
Creation of
Content
Interactive
Media
Media and
Internet

3. Media Networks 3
CONFIDENTIAL

4. Parks & Resorts 4
CONFIDENTIAL

5. Consumer Products
CONFIDENTIAL

6. Studio Entertainment 6
CONFIDENTIAL

7. Interactive Media 7
CONFIDENTIAL

8. Organization of The Walt Disney Company
Corporate
Media
Networks
2010
Revenue:
$17.2B USD
Theme Parks
and
Resorts
2010
Revenue:
$10.7 B USD
Consumer
Products
2010
Revenue:
$2.7 B USD
Studio
Entertainment
2010
Revenue:
$6.7 B USD
Interactive
Media
2010
Revenue:
$.76 B USD

9. Growth in Revenue by Year

10. Highlights Revenue up 5% Net income attributable to Disney up 20%
Toy Story 3 – No. 1 animated movie of all time
Acquisition of Marvel Entertainment
Investing significantly in expanding and enhancing the theme parks
Began Shanghai project

11. How Disney Manages Risk
Risks are identified, defined and quantified
Risk management strategies are developed and implemented
Leadership with the business units
Partnership with external resources and providers
Corporate Risk Management reports through Corporate Treasury
Corporate Risk Management is focused on pure risks
Financial/operational risks managed by Treasury, Finance and the Business Units
Business Unit risk management specialists report to the leaders of the business unit

12. Risk Identification and Quantification
Risk identification in our business is a constant process and repetitive loop
Various techniques and methods are used depending on the exposure
Risk mapping
Dynamic analysis and simulation
Risk modeling
Whether a risk is insurable is a second-question
Three key risk areas

13. Risk Identification and Quantification
Property and Business Interruption

14. Risk Identification and Quantification
Work Injury or Illness

15. Risk Identification and Quantification
Motion Picture and Television Production

16. Risk Tolerance and Appetite
Risk tolerance considers reputational, financial and operational impacts
Processes used depend on the nature of the risk
Strong balance sheet and cash flow increases our financial tolerance
Managing and mitigating a risk is the first strategy
If a pure risk can be economically transferred we use commercial insurance

17. Risk Financing Risk retention and self-insurance Captive insurance
Alameda Insurance Company
Buena Vista Insurance Company
Captives are used strategically
Internally: To help business units understand risk
Externally: To improve placement and reduce the cost-of-risk
Alternative Risk Transfer
CAT bonds
Various weather derivatives and methods

18. Selling Risk We develop long-term partnerships with insurers
Partners must know and understand our business
What sells our risk:
Our people
Our processes
Our infrastructure

19. The Future of Risk Management
Technology
Global risk takers
Continued need for:
Long-term Vision
Trusting Relationships
Creative Problem-solving
Communicating Effectively