As the next step in its strategy to manage the risks inherent to its core business – the Olympic Games – the International Olympic Committee (IOC) on Tuesday announced that it has taken out an insurance policy, which also protects the interests of the National Olympic Committees and the International Federations.
The first Games to be covered by this new policy will be the Games of the XXVIII Olympiad in Athens, this summer. The total coverage will reportedly be for an amount of US$170 million. A similar approach will apply for the next editions of the Games, i.e. Turin 2006, Beijing 2008 and Vancouver 2010.
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.
Commenting on the announcement, President Rogge said, “Taking out a policy to manage the risk associated with one’s core business is standard, prudent behaviour for any modern organisation. 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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