Strategic Risk Management
Risk Assignment of DC
Strategic Risk Management of DC Films
Summary:
This paper focus on two main risks of DC Films, supply chain risk and governance risk.
Considering that the movie is the core of DC’s competitiveness, every link in this
supply chain is crucial. Supply chain risk mainly derives from operational risk, demand
risk and competitive risk. Governance risk is also a big challenge for DC, as the
company’s recent restructuring may bring up new problems to the company.
There are some possible solutions that have brought out. For example, DC should try
to focus on character’s individual experience rather than blindly enhancing their
connection and also improve its current culture, system and structure of internal control
and risk management.
A. Risk Assessment
1. Supply chain risk
DC Films is facing severe supply chain risks because there is not a complete and clear
supply chain in its strategy. At the same time, they are faced with obvious risks in a
different component of the supply chain.
a. Domestic environment:
Supply risks:
Overview of risk: There are two components of the suppliers of DC Films, one is a
content supplier, the other is a fund supplier. DC Film adapts its own comics into films,
so its content supplier drivers from its comics. And its fund supplier mainly is its parent
company Warner Bros.
Impact of risk: DC Films has a great dependence on content supplier (DC comics).
The quality of comics determines more than 80% of the film content. However, due to
the leading sales and a large fan base of comics, DC Films faces moderate supply risk.
