Olympics Takes Out $170 Million Policy
NU Online News Service, April 28, 4 :09 p.m. EDT?The International Olympic Committee announced from its headquarters in Lausanne, Switzerland yesterday that it had secured $170 million in cancellation coverage for this summer's Olympic games in Athens.
The IOC, which did not identify what carrier was providing the coverage, said it covers cancellation of the games due to terrorist action or natural catastrophes, and the policy protects the interests of the National Olympic Committees and the International Federations.
The IOC said the action was part of a "strategy to manage the risks inherent to its core business--the Olympic Games."
A similar approach, IOC said, will be applied for future editions of the Games?Turin 2006, Beijing 2008 and Vancouver 2010.
The organization said the idea to put in place a risk management policy was initiated by IOC President Jacques Rogge following his election in 2001, when he clearly indicated that there was a need for the IOC to protect the funding of the Olympic movement by building financial reserves and, when necessary, taking out insurance.
First discussions on the matter were held during the 114th IOC Extraordinary Session in Mexico City in November 2002.
"Taking out a policy to manage the risk associated with one's core business is standard, prudent behavior for any modern organization," said Mr. Rogge. "We are happy with the terms agreed, which will support not only the IOC but also the National Olympic Committees and the International Federations."
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