A company as complex as Disney--generating annual revenue of $35.5 billion from four business segments in diverse industries, staffed by over 106,000 U.S. employees engaged in a wide range of occupations in all 50 states--must take into account a wide range of exposures when developing a risk management philosophy.

Each of Disney's four business segments poses its own challenges. For example:

o Theme parks and resorts: Disney operates laundry, construction and energy distribution operations--as well as, in many locations, its own fire department. At the theme parks, there are daily live shows and performances to consider, which often include risky stunts and pyrotechnics.

o Media networks: ESPN, ABC, ABC Family and The Disney Channel "employ news correspondents and camera crews that may enter restricted or hazardous areas, as well as studio technicians, production personnel, television actors, and all the crafts and trades required to support them," Disney noted.

o Studio entertainment: In producing live-action and animated motion pictures, TV animation programs, musical recordings and live stage plays, Disney must consider risks for workers such as stunt performers and those who set and rig special effects.

o Consumer products: This segment comes with the occupational risks inherent in any large retail chain operation.

Complicating the fact that each segment poses its own unique exposures is the company's geographic reach--with Disney operating in all 50 states, as well as internationally. But Tim East, director of risk management at The Walt Disney Company, said the overall approach remains the same: "We think about safety wherever we go and whatever we're doing."

When Mr. East says "we," he means that literally. "From senior executives to front-line supervisors, and in fact to every employee, there is wide support for safety and risk management," his essay noted.

Illustrating his point, Mr. East recalled that several years ago he was in a Disney retail store and used his employee discount. The cast member behind the counter asked where he worked, and Mr. East cited the risk management department.

"At a lot of businesses, that would have brought no response," he noted. "But [the employee] said, 'Oh, risk management. I know what that is. We talk about it every day,' and he went on to point out some of the things they do within the store to address risk management issues."

Talking risk management is one thing, but the real challenge is actually developing and implementing loss control strategies. To that end, Mr. East points to the "expertise within the business units" at Disney.

"Some companies have a large corporate staff of safety professionals and loss control professionals, and certainly we do have professionals at that level on the corporate staff," he said. "But at Disney, we believe that loss control and safety have to be driven at the business-unit level, and that's where the expertise lies."

Support for risk management starts at the top, according to Mr. East, who noted that the then president of Walt Disney World personally participated in the making of a safety video to communicate how important the subject is within that business segment.

Communication plays an important role. Mr. East said experts across the company are constantly in touch with each other, with some specialized groups of safety and claims professionals meeting every week to discuss best practices and programs. Other groups meet monthly or quarterly, and Mr. East said that global risk management conferences are held every 12-to-18 months to reestablish connections.

Safety and workers' comp professionals, the essay added, have taken leadership roles in developing various loss control programs. For the studio entertainment segment, for example, the essay explained that safety professionals read every script to evaluate risks and develop safety procedures for stunts, special effects and other exposures.

For the media networks segment, the company reviews fall-protection for camera operators at sporting events and situation awareness and safety training for news personnel in potential hotspots such as Iraq.

The company also started a "Safety in Motion" program, which focuses on reducing body motion and musculoskeletal injuries--particularly in the theme parks and resorts segment. The essay noted that this program has helped reduce claims at the Walt Disney World Resort by 38 percent, "with similar results at other business units."

Other loss prevention initiatives include:

o A safety scorecard at the theme parks and resorts segment, which reports--by area and line of business--the OSHA frequency rate for both medical-only and lost-time claims.

o The "BedWedge," invented at The Disneyland Resort to help housekeeping departments avoid repetitive motion strains. According to Disney's essay, "this device allows the employee to use leverage when changing linens by gently lifting the mattress, and it has made a significant contribution in reducing injuries."

o A "Shoes for Crews" initiative, in which Disney engaged an external vendor to develop footwear that could reduce slip-and-fall exposures in food service locations.

o The "Safety Management System," a proprietary incident reporting tool used at Walt Disney World that "requires leaders to electronically report all incidents and address the means for future prevention using an online application."

Disney said it also has channels where employees can report safety concerns.

No matter how effective a loss prevention program may be, some workers' comp claims are inevitable--so Disney has developed strategies designed to get injured employees back to work quickly and safely. Its essay noted a commitment to a system called: "Recover While Working."

"Our focus is helping employees remain employed throughout the recovery process and minimizing any time away from work," the essay explained.

Once an injury occurs, Disney looks to establish "a clear understanding and documentation of the demands of the job." Next, the company works to educate physicians by "describing work restrictions consistent with the demands of the job..."

Disney focuses on capability rather than disability. "It is important to know limitations, but it is also essential to know what the injured worker can do," the company noted in its essay. Disney then coordinates with the injured employee's operating department to facilitate a return to the workplace.

Disney also uses onsite medical centers at major locations in California, Florida and New York, staffed by a variety of health professionals that may include physicians and registered nurses.

Mr. East said integration is the biggest advantage of using onsite clinics as a first response to injuries. Medical providers that are essentially part of the Disney team, he added, will understand the "unique demands of our workplace and environment."

In addition, he said onsite medical centers mean "less loss of time in transportation, waiting at home for an appointment, being sent home from work unnecessarily--all of those things are inefficient from the viewpoint of Disney as an employer. But it's also frustrating for the injured worker, because when you've been hurt at work, you want to get treatment as soon as possible. So being close to work, nearby, or actually on the worksite is the best solution for everyone."

Claims management is another post-injury focus for Disney, which noted in its award essay that at its "Walt Disney World and The Disneyland Resort, self-administered claims departments, made up of Disney employees, have been established to oversee claims administration."

At other locations, Disney added, dedicated claims management teams at the corporate level supervise third-party administrator and insurer activities. "The corporate oversight teams have developed specific claim-handling instructions for the carrier/TPA, including compensability evaluation, litigation referrals, assignment of nurse specialists and general mitigation strategies," the essay explained.

Disney works closely with its insurance partners as well. Mr. East said Disney secures excess workers' comp coverage through Liberty Mutual, adding that Disney tries to leverage the carrier's loss control services and expertise, as well as the resources of Aon, Disney's broker.

Mr. East noted that ACE provides coverage for Disney's U.S. employees when traveling overseas, and that Disney uses another brokerage, Marsh, "extensively for consulting on both workers' compensation and safety."

While the larger theme parks and resorts can take a high retention--either by self-insuring or through high deductibles--some of the smaller business units within Disney require more reasonable deductibles.

For this reason, Disney has a wholly-owned captive domiciled in Vermont--Alameda Insurance Company. For business units insured through AIC, losses per employee fell from $662 in 2001 to $337 in 2005, while the workers' comp frequency rate dropped 39 percent.

Disney also has strategies to combat fraud, and it participates in workers' comp reform efforts in various states throughout the country. But the company draws heavily on its ability to adapt to changing circumstances, both internally and externally, when unplanned events occur.

For example, Mr. East said there was rapid growth of workers' comp claims earlier in the decade throughout California, affecting Disney as well. To help cope with the problem, Disney formed a Strategic Workerscomp Action Team.

The SWAT team members were "segregated from their regular claims duties and assigned 996 files," Disney said in its essay. "Their task was to handle these and any additional cases involving these claimants. Within one year, over two-thirds of the claims were closed by the team."

Mr. East added that while this was "a unique response," it was not a unique approach for Disney, "because we're constantly responding to changes in the insurance and risk management environments and pulling together special teams to address emerging issues."

Disney At A Glance Box, with company logo: