02-17-2013, 10:36 AM
Unfortunately, the need to make a profit is coming in for some hard hits in this story. It's worth pointing out that not every industry puts profit above the need to continue in business (which of course also involves the need to continue to make a profit). Banks are fully aware that if the ATM network goes down for any period of time, you've got the makings of a large-scale situation like that of the Carnival cruise ships: people can't get along without cash. As a result, there are detailed regulatory requirements for banks to have backup computer systems in multiple layers to be able to keep ATMs up, or bring them back up in a fairly short period of time. And remember that if the banks didn't want these requirements, they wouldn't be there -- they keep every player up to the same standard. I used to participate in tests and exercises once or twice a year to rehearse the procedures for going to backup on bank computer systems. There have been numerous hurricanes, as well as 9/11, that put major bank computer systems out of operation, but the banks were able to maintain their ATM networks. Even in the absence of specific regulatory requirements, auditors look for credible corporate contingency plans. Clearly, with a cruise ship losing power and drifting for days in 2010, a sinking in 2012, and another power loss with no lessons learned in 2013, this should be raising questions about Carnival's ability to continue in business. It's not just some sort of a call that says it's cheaper to pay off litigants every year or two (haw haw), or we don't mind three major PR hits in four years (haw haw). I would say people are going to be out at Carnival. You can't run a company that way and stay in business.