Mandate:OAP Event Interruption / Weather Insurance
|Board Member||Kareem Halabi|
|Expected Completion Date||2020-04-30|
The goal of this mandate is to research and implement strategies to mitigate the financial risk that EUS undertakes in order to avoid being overly exposed to factors not within our control. This may include assessing the feasibility of purchasing an Event Weather Insurance Policy for OAP as rain substantially affects OAP’s attendance, implementing a fixed return Endowment Fund (managed by McGill or externally) that could provide a sustainable source of cash flow irrespective of stock market conditions and setting a target profit margin for all services which would provide a reliable source of profit to offset other unforeseen losses.
The EUS relies upon certain revenue sources that can vary wildly from year to year based on factors not within our control. For example OAP is a major source of profit for the EUS whose success is highly dependent on weather conditions. Additionally, EUS currently holds a substantial portion of its cash reserves in a mutual fund whose returns can vary dependent on stock market conditions. Finally, G-Store and Frostbite occasionally fail to break even, relying upon the successful operation of CopiEUS to remain profitable.
Goals first set when the mandate was created
-(If feasible) Setting up an Event Cancellation / Interruption Policy for OAP and OAP Lite
-Establishing a Foundation or internal Endowment fund that provides steady interest returns
-(Low priority) Setting profit targets for Services and implementing a policy for assessing them on a regular basis