The risk associated with initiative and financial status of Disney provides an array of information to include development, and future performances. Increased competitor pressure internationally and domestically provides challenges and leads to additional marketing challenges to remain at the top of the food chain in the Theme Park Industry. The financial status of the United States economy and international economic struggles provides challenges, which impedes the process of taking on additional loans or investment responsibilities because of the fluctuation in the economy. The economic conditions of Disney provides objectives to manage interest rates by lowering loan cost and maintaining fixed debt ratio between minimum and maximum values set by company guidelines. Foreign policy plays a vital role in risk reduction by providing a hedge coverage with maximum and minimum percentages that does not exceed a five- year threshold. In addition (“VAR”) Value at Risk provides guidelines associated with a potential one- day- lost in normal marketing conditions at a 95% accuracy rate using currency sensitive financial instruments, interest rate sensitive financial instruments, and combined portfolio. In addition there are several risk associated with Disney financial status to include compliance risk, people in the workforce are working longer, which effects the dollar to include the climbing medical cost and increasing wages and the consumer demands during these tough economic, and financial times. Some method to offset the risk include taking on additional established organizations like Lucas films the founder of Star Wars, and Pixar, which helps minimize risk and keeps Disney as one of the Vacation spot in the World.

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