Risk Management

Risk management is ingrained in our corporate culture. Effective risk management strategies allow us to identify impacts, risks and opportunities, thereby helping us to mitigate risks while executing our business strategies.

2020

Goal Update

Business Partner Code of Conduct & Ethics

Further develop and implement vendor assurance procedures ensuring compliance with Carnival Corporation & plc’s Business Partner Code of Conduct and Ethics. We comply with regulatory requirements and follow best management practices addressing human rights, ethics, and environmental protection throughout our operations and expect our business partners to adopt and incorporate these into their own organization.

Human Rights

We are committed to furthering our commitment to human rights by developing a human rights policy in 2020.

Animal Welfare

  • We continue our partnership with the Association of British Travel Agents (ABTA) to help us ensure we are responsibly managing excursions involving animals.
  • We continue to work with third-party animal welfare auditors.
  • Completed 100% of animal welfare audits for tour encounters offering dog sledding in Alaska.
  • Completed more than 50% of animal welfare audits for tour encounters with dolphins in captivity between FY2018 and FY2019.
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Here is what we are doing to manage risks

Ethics & Compliance

In 2019, we focused on enhancing our compliance framework by developing a dedicated ethics…

Carnival's Pathway to Decarbonization

Addressing climate change is one of our top priorities and we are committed to continue to lead the…

Civil Unrest

Throughout the world in 2019, as countries experienced outbreaks of civil unrest, we worked closely…

Visible Body Worn Cameras

Most of our onboard security teams now use Body Worn Cameras to record interactions with guests and…

Port & Destination Vulnerability and Threat Assessments

We regularly conduct port vulnerability and threat assessments to ensure the safety and well-being…

Audit & Investigations

Our ships are regulated by various international, national, state and local laws,…

CyberSecurity

In 2019, we continued to enhance cybersecurity capabilities and data privacy initiatives to protect…

Psychometric Evaluation Program

We continue to evaluate our Deck, Technical and Environmental Officers through a…

HESS Event Reporting System

In 2019, we completed the fleetwide rollout of a new health, environment, safety and security…

Human Rights Policy

As part of our ongoing efforts and support for human rights, we are committed to develop a human…

Animal Welfare

We continue our partnership with the Association of British Travel Agents (ABTA)…

Ethisphere Partnership

The Ethisphere® Institute is a global leader in defining and advancing standards of…

Arison Maritime Center - CSMART

We continue to train our officers in our world-class facility equipped with the…

Ethics & Compliance icon

Ethics & Compliance

In 2019, we focused on enhancing our compliance framework by developing a dedicated ethics and compliance program and corresponding strategic plan. Through this, we were able to significantly increase the resources devoted to our compliance function. Our Chief Ethics and Compliance Officer (CECO), a member of the executive leadership team, leads the effort to further develop our ethics and compliance program across the entire corporation. The CECO is assisted by other leaders who focus on key areas (including environmental, health, safety and various general compliance issues), as well as important processes (investigations, compliance training, risks, and communications). It is important to note that the Ethics & Compliance is not just a single Department within All Brands Groups - but rather a corporate-wide program - with key Ethics & Compliance Officers (also known as “ECO’s”) who help shape and implement the program initiatives in each of the operating companies.

Through the collective efforts of these leaders,
this corporate-wide program involves compliance risk management, improved compliance training programs for our employees, thorough investigations and remedial actions relating to health, environmental and safety incidents, and efforts to strengthen our corporate culture. To further heighten the focus on ethics and compliance, the Boards of Directors established Compliance Committees to oversee the ethics and compliance program, maintain regular communications with the Chief Ethics and Compliance Officer, and ensure implementation of the ethics and compliance program’s strategic plan across the corporation.

Carnival's Pathway to Decarbonization icon

Carnival's Pathway to Decarbonization

Addressing climate change is one of our top priorities and we are committed to continue to lead the path within the cruise industry. Our entire management team, including our Board of Directors, is committed to addressing climate change. Our path to decarbonization involves multimillion-dollar investments and a multi-faceted strategy. Key components of this strategy include adopting international frameworks and working with industry regulatory bodies to: address upcoming regulatory requirements and conditions, maximize efficiency opportunities/gains, implement low carbon fuels, invest in carbon-efficient technologies, support and accelerate industry-specific research & development projects, establish internal goals supporting the path as well as partner with other companies, NGOs, and relevant stakeholders. In the coming years, we are likely to see an array of emerging technological innovations as currently there is not a single (nor a combination of technologies) that can move the maritime industry straight into a decarbonization path. As we navigate this journey, we are committed to evaluate options, work with various stakeholders, and adjust our path as needed.

Civil Unrest icon

Civil Unrest

Throughout the world in 2019, as countries experienced outbreaks of civil unrest, we worked closely with industry partners and regional governments. We implemented appropriate security measures which allowed us to navigate through protests with limited impact.

Visible Body Worn Cameras icon

Visible Body Worn Cameras

Most of our onboard security teams now use Body Worn Cameras to record interactions with guests and gather video evidence of developing security situations. The use of cameras is clearly marked on the security officer’s uniform. These cameras have proven useful in capturing interactions between guests and crew members and in preventing confrontations by defusing tense situations.

Port & Destination Vulnerability and Threat Assessments icon

Port & Destination Vulnerability and Threat Assessments

We regularly conduct port vulnerability and threat assessments to ensure the safety and well-being of our passengers and crew. These assessments document a port’s physical security, vulnerabilities, and any threats specific to the location. The assessments dictate the risk-mitigation actions that must be taken by ships calling on the port.

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Audit & Investigations

  • Our ships are regulated by various international, national, state and local laws, regulations and treaties enforced in the jurisdictions in which they operate. Compliance with these laws and regulations is verified through regular third-party inspections, surveys, and audits.

  • Internal Health, Environment, Safety and Security (HESS) compliance audits are conducted annually of each of our brands’ head offices, 100% of our fleet, our ports, hotels, and land transport assets.

  • HESS investigations are also carried out as needed to determine the root cause of incidents and identify corrective and preventative actions that will reduce the risk of future occurrences. In 2019, we made a number of improvements to our investigative function, which included: a) adding additional investigators; b) revising our investigation policies to reduce the tendency to place blame and to emphasize the need to learn from incidents; c) improving investigative training on root cause analysis; d) reducing the backlog of investigations. Additional improvements to the investigation program are planned and on- going throughout 2020.

  • To better promote sharing of “lessons learned” throughout the corporation, all incident investigation recommendations, audit observations, findings and non-conformities are periodically reviewed by HESS leaders, reported to the brands and to relevant corporate groups for review and resolution. Additionally, internal focus reviews are performed based on identified root causes from incident investigations, audits, and management risk assessments.

CyberSecurity icon

CyberSecurity

In 2019, we continued to enhance cybersecurity capabilities and data privacy initiatives to protect the fleet, employees and our guests from any threats that could impact operational technology systems and data privacy. We introduced data privacy and cybersecurity training for applicable shipboard staff and shoreside employees. Cybersecurity policies and procedures were introduced into our Global Health, Environment, Safety and Security (HESS) management system. We also have implemented procedures to ensure compliance with applicable data privacy laws in various jurisdictions.

Psychometric Evaluation Program icon

Psychometric Evaluation Program

We continue to evaluate our Deck, Technical and Environmental Officers through a Psychometric Evaluation Program. The program is utilized across all brands for the selection and promotion of officers through the evaluation of specific psychological attributes at certain career stages. To ensure that all officers possess the attributes required for each of their roles, a variety of psychometric evaluations, both online and in-person with psychologists are utilized. The program includes a series of online and proctored evaluations as part of the new hire process including a comprehensive in-person evaluation as part of the senior officer promotion process and ongoing “check in” evaluations of our senior officers.

HESS Event Reporting System icon

HESS Event Reporting System

In 2019, we completed the fleetwide rollout of a new health, environment, safety and security (HESS) event reporting system. This platform has allowed us to standardize our HESS event reporting and analysis capabilities across the entire fleet.

Human Rights Policy icon

Human Rights Policy

As part of our ongoing efforts and support for human rights, we are committed to develop a human rights policy that will be in alignment with the Universal Declaration of Human Rights in 2020.

Animal Welfare icon

Animal Welfare

  • We continue our partnership with the Association of British Travel Agents (ABTA) to help us ensure we are responsibly managing excursions involving animals.

  • We continue to work with third-party animal welfare auditor.

  • Completed 100% of animal welfare audits for tour encounters offering dog sledding in Alaska.

  • Completed more than 50% of animal welfare audits for tour encounters with dolphins in captivity between FY2018 and FY2019.

Ethisphere Partnership icon

Ethisphere Partnership

The Ethisphere® Institute is a global leader in defining and advancing standards of ethical business practices that fuel corporate character, marketplace trust, and business success. We are honored to be a member of The Business Ethics Leadership Alliance (BELA) within the Ethisphere organization. BELA supports the sharing of experiences and best practices within its members to improve ethics and compliance programs globally.

Arison Maritime Center - CSMART icon

Arison Maritime Center - CSMART

  • We continue to train our officers in our world-class facility equipped with the latest maritime simulation technology and equipment. The Center provides rigorous safety training for bridge, engineering and environmental officers responsible for the navigation, operation and environmental compliance of the world’s largest fleet of cruise ships. Participants receive a maritime training experience that fosters critical thinking, problem solving, ethical decision making and skill development. Click here for more information.

  • Carnival Corporation’s CSMART Training Center received the 2019 SAFETY4SEA Training Award, for providing high-quality maritime training services for industry-wide safety, sustainability and operational excellence. Read more here.

Our

Commitment

Like companies in any industry, we face a number of challenges and opportunities related to our performance, including the regulatory environment, global political and socioeconomic landscape and the advancement of science and technology. We take an

active approach to identifying risks and opportunities and use a variety of strategies to manage and take advantage of them. We work to identify the best approaches to managing these issues, while simultaneously focusing on our sustainability.

Our

Strategy

Risk management is embedded throughout our organization. Our strategy to manage our risks and seek out opportunities consists of a system of internal controls comprised of our management systems, organizational structures, audit processes, investigations, standards, and our Code of Business Conduct and Ethics. Risks are managed at every level of the organization and discussed openly with leadership in order to minimize the impact of foreseen and unforeseen events. Upper management and the Boards of Directors are regularly advised on corporate risk management issues and on the status of compliance with our health, environment, safety, security and sustainability policies and procedures.

Our key impacts, risks and opportunities are addressed throughout this report. The following is a partial list of our impacts, risks and opportunities:

  • Protecting the health and safety of our guests and crew.

  • Ensuring the security of our guests, crew and ships.

  • Building and maintaining trust and integrity in our supply chain.

  • Preserving the natural environment.

  • Remaining transparent in our sustainability performance accountability and reporting.

  • Recruiting, training and retaining qualified employees.

  • Operating in a changing geopolitical climate.

  • Improving our performance through technological solutions and initiatives.

  • Conserving fuel and minimizing engine emissions.

  • Climate change - reducing greenhouse gas (GHG) emissions.

  • Operating in an evolving regulatory landscape.

  • Improving natural resource management.

  • Strengthening stakeholder engagement.

  • Partnering with communities/ports-of-call.

Our health, environment, safety, security and sustainability principles focus on detection, prevention, implementation, feedback and improvement. We plan and establish objectives and processes necessary to achieve the required and expected results. We then implement the plan and processes. Studying the actual results of implementation and comparing against the expected results, we then take action on significant differences between actual and planned results. Finally, we analyze these differences to determine their root causes and then determine where to apply changes that will improve the process or results.

Identification and mitigation of risks is a management responsibility. To facilitate this process, the Risk Advisory and Assurance Services department (RAAS) provides the enterprise with a holistic risk framework and methodology for quantifying risk and assessing management’s capabilities for improving risk management. RAAS also provides services via their internal audit program that can provide assurance that risk mitigations are designed and operating effectively.

Pursuant to this program, the RAAS department works closely with management to perform annual assessments, identify risks and evaluate controls to ensure compliance with company policies and procedures, as well as laws and regulations. Management reviews the assessments and updates with the Audit Committees.