For an organization as diverse as The Walt Disney Company,developing a comprehensive risk management strategy for workers'compensation might have been a daunting challenge, were it not forthe commitment, support and adaptability of its people, fromtop-level executives down to individual employees--which thecompany refers to as "cast members."

Disney's enterprisewide awareness and backing for riskmanagement is generated by "the recognition that our reputation isour greatest asset, and disregard for the safety of our employeesand care for injured workers would be a contradiction to our mostclosely held values and...reputation," the firm said.

Such grassroots dedication--as well as the impact of its losscontrol program on the company's claims experience--is why Disneywas chosen as one of the three winners in the second annualNational Underwriter Award For Excellence in Workers' CompensationRisk Management program, receiving an Honorable Mention.

Disney's multifaceted loss control and safety program has cutthe cost of risk dramatically. At the Walt Disney World Resort inFlorida, for example, the OSHA frequency rate fell 60.3 percentfrom 2002 to 2007, while the lost-time frequency rate fell nearlyin half. The ultimate loss cost per $1,000 of payroll fell 26.3percent. Disney cited similar results at its Disneyland Resort.

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 ofoccupations in all 50 states--must take into account a wide rangeof exposures when developing a risk management philosophy.

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

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

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

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

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

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

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

Illustrating his point, Mr. East recalled that several years agohe was in a Disney retail store and used his employee discount. Thecast member behind the counter asked where he worked, and Mr. Eastcited 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 knowwhat that is. We talk about it every day,' and he went on to pointout some of the things they do within the store to address riskmanagement issues."

Talking risk management is one thing, but the real challenge isactually developing and implementing loss control strategies. Tothat end, Mr. East points to the "expertise within the businessunits" at Disney.

"Some companies have a large corporate staff of safetyprofessionals and loss control professionals, and certainly we dohave professionals at that level on the corporate staff," he said."But at Disney, we believe that loss control and safety have to bedriven at the business-unit level, and that's where the expertiselies."

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

Communication plays an important role. Mr. East said expertsacross the company are constantly in touch with each other, withsome specialized groups of safety and claims professionals meetingevery week to discuss best practices and programs. Other groupsmeet monthly or quarterly, and Mr. East said that global riskmanagement conferences are held every 12-to-18 months toreestablish connections.

Safety and workers' comp professionals, the essay added, havetaken leadership roles in developing various loss control programs.For the studio entertainment segment, for example, the essayexplained that safety professionals read every script to evaluaterisks and develop safety procedures for stunts, special effects andother exposures.

For the media networks segment, the company reviewsfall-protection for camera operators at sporting events andsituation awareness and safety training for news personnel inpotential hotspots such as Iraq.

The company also started a "Safety in Motion" program, whichfocuses on reducing body motion and musculoskeletalinjuries--particularly in the theme parks and resorts segment. Theessay noted that this program has helped reduce claims at the WaltDisney World Resort by 38 percent, "with similar results at otherbusiness 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 frequencyrate for both medical-only and lost-time claims.

o The "BedWedge," invented at The Disneyland Resort to helphousekeeping departments avoid repetitive motion strains. Accordingto Disney's essay, "this device allows the employee to use leveragewhen changing linens by gently lifting the mattress, and it hasmade a significant contribution in reducing injuries."

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

o The "Safety Management System," a proprietary incidentreporting tool used at Walt Disney World that "requires leaders toelectronically report all incidents and address the means forfuture prevention using an online application."

Disney said it also has channels where employees can reportsafety concerns.

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

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

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

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

Disney also uses onsite medical centers at major locations inCalifornia, Florida and New York, staffed by a variety of healthprofessionals that may include physicians and registerednurses.

Mr. East said integration is the biggest advantage of usingonsite clinics as a first response to injuries. Medical providersthat are essentially part of the Disney team, he added, willunderstand the "unique demands of our workplace andenvironment."

In addition, he said onsite medical centers mean "less loss oftime in transportation, waiting at home for an appointment, beingsent home from work unnecessarily--all of those things areinefficient from the viewpoint of Disney as an employer. But it'salso frustrating for the injured worker, because when you've beenhurt at work, you want to get treatment as soon as possible. Sobeing close to work, nearby, or actually on the worksite is thebest solution for everyone."

Claims management is another post-injury focus for Disney, whichnoted in its award essay that at its "Walt Disney World and TheDisneyland Resort, self-administered claims departments, made up ofDisney employees, have been established to oversee claimsadministration."

At other locations, Disney added, dedicated claims managementteams at the corporate level supervise third-party administratorand insurer activities. "The corporate oversight teams havedeveloped 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 throughLiberty Mutual, adding that Disney tries to leverage the carrier'sloss control services and expertise, as well as the resources ofAon, Disney's broker.

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

While the larger theme parks and resorts can take a highretention--either by self-insuring or through highdeductibles--some of the smaller business units within Disneyrequire more reasonable deductibles.

For this reason, Disney has a wholly-owned captive domiciled inVermont--Alameda Insurance Company. For business units insuredthrough AIC, losses per employee fell from $662 in 2001 to $337 in2005, while the workers' comp frequency rate dropped 39percent.

Disney also has strategies to combat fraud, and it participatesin workers' comp reform efforts in various states throughout thecountry. But the company draws heavily on its ability to adapt tochanging circumstances, both internally and externally, whenunplanned events occur.

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

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

Mr. East added that while this was "a unique response," it wasnot a unique approach for Disney, "because we're constantlyresponding to changes in the insurance and risk managementenvironments and pulling together special teams to address emergingissues."

Disney At A Glance Box, with company logo: