The International Olympic Committee has secured $170 million in cancellation coverage for this summer’s Olympic games in Athens. The policy covers cancellation of the games due to terrorist action or natural catastrophes, and protects the interests of the National Olympic Committees and the International Federations, according to the IOC.

The implementation of a risk management policy was suggested by IOC President Jacques Rogge. Following his election in 2001, Rogge stressed the need for the IOC to protect the funding of the Olympic movement by building financial reserves and, when necessary, procuring insurance. “Taking out a policy to manage the risk associated with one’s core business is standard, prudent behavior for any modern organization,” said Rogge. The committee plans to adopt a similar approach to future events, such as those scheduled for Turin in 2006, Beijing in 2008, and Vancouver in 2010.