THE TITAN ‘SUB DISASTER: THE ROLE OF REGULATORY COMPLIANCE IN RISK MITIGATION

On June 12, 2023, the world witnessed one of the worst maritime accidents in history, The Titan, a ‘state-of-the-art’ submarine designed for deep-sea exploration and tourism, sank to the bottom of the Atlantic Ocean with a combined 5 passengers and crew on board. The cause of the disaster was a catastrophic failure of the submarine’s hull, which was breached by a sharp object during a routine dive. The investigation revealed that the hull was not built to the required standards of safety and durability and that the submarine manufacturer had ignored several warnings and violation notices from the regulatory authorities.

This tragic event raises important questions about the role of regulatory compliance in risk mitigation, especially in the context of emerging technologies and industries –

• How can regulators ensure that new and innovative products and services are safe and reliable for the public?
• How can operators balance the demands of innovation, competition, and profitability with the obligations of compliance, accountability, and responsibility? And,
• How can consumers make informed decisions about the risks and benefits of using such products and services?

In this article, we will explore these questions and offer some insights and recommendations based on our expertise in regulatory compliance and relative risk management. We will also discuss some of the benefits of regulatory compliance for operators, customers, and society.

REGULATING EMERGING TECHNOLOGIES AND INDUSTRIES: OPPORTUNITIES AND CHALLENGES

Regulatory compliance plays a key role in risk mitigation in any industry or activity, it is especially important for emerging technologies and industries like deep-sea exploration and tourism, where there are constant activities that push the boundaries of what is possible, introducing new risks and challenges that require careful oversight and regulation.

One of the key challenges in regulating emerging technologies is the rapid pace of innovation –  new products and services are constantly being developed, and regulatory bodies must keep up with these advancements to ensure they are safe and compliant. However, striking the right balance between encouraging innovation and ensuring safety can be a delicate task. Regulators must foster an environment that promotes creativity and progress while also setting clear standards and guidelines for compliance.

Another challenge is the lack of established best practices and industry standards. In emerging technologies, there may be limited precedents or benchmarks to guide regulatory decisions, meaning that regulators must work closely with industry stakeholders, experts, and researchers to understand the risks involved and develop appropriate regulations. Collaboration between regulators and industry players is crucial to ensure that regulations are practical, effective, and adaptable to the evolving landscape.

Furthermore, emerging technologies often attract new and inexperienced operators who may not have a deep understanding of the risks involved or the importance of regulatory compliance. In the case of the Titan Submarine Disaster, it was revealed that the manufacturer, OceanGate had ignored warnings and violated regulatory requirements. According to its website in 2023, OceanGate Inc. claimed it “collaborated with experts from NASA, Boeing, and the University of Washington (UW) to design and engineer Titan. However, after Titan went missing in 2023, these former collaborators denied any involvement in the Titan project. UW stated specifically that the University’s Applied Physics Laboratory (APL) had no role in the “design, engineering, or testing of the Titan submersible”. Boeing also said that it “was not a partner on the Titan and did not design or build it”. NASA clarified that it had a Space Act Agreement with OceanGate through its Marshall Space Flight Center, but “did not conduct testing and manufacturing via its workforce or facilities”.

This highlights the need for effective enforcement and monitoring mechanisms to ensure compliance across the industry. To ensure higher compliance performance, regulators should conduct regular inspections, audits, and assessments to identify and address any non-compliance issues before they escalate into disasters.

Despite these challenges, regulatory compliance in emerging technologies also presents opportunities for innovation and improvement. By establishing clear guidelines and standards, regulators can foster an environment that encourages operators to prioritize safety and quality. Compliance requirements can drive research and development efforts, leading to the creation of new technologies, materials, and processes that enhance safety and mitigate risks.

Additionally, regulatory compliance can provide a competitive advantage for operators. Customers are becoming increasingly aware of the importance of safety and compliance, and they are more likely to choose operators who demonstrate a commitment to these principles. Compliance can also help operators differentiate themselves from their competitors and build trust with customers, ultimately leading to greater market share and profitability.

BENEFITS OF REGULATORY COMPLIANCE

Regulatory compliance is not only a legal obligation, but also a strategic advantage for operators who want to establish trust, reputation, and credibility in their markets. By complying with the rules, standards, and guidelines set by the relevant authorities for their industry or activity, operators can enjoy several benefits, such as:

• SAFETY: Compliance helps operators to prevent accidents, injuries, or damages that could harm their customers, employees, or assets. Compliance also helps operators to prepare for and respond to emergencies or crises that could affect their operations or reputation.
• QUALITY: Compliance helps operators to improve the quality and performance of their products or services. Compliance also helps operators to foster innovation and creativity in their products or services.
• EFFICIENCY: Compliance helps operators to optimize their resources and processes. Compliance also helps operators to reduce costs and waste in their operations.
• SUSTAINABILITY: Compliance helps operators protect the environment and natural resources. Compliance also helps operators to contribute to social and economic development in their communities.
• ACCOUNTABILITY: Compliance helps operators to demonstrate their responsibility and integrity. Compliance also helps operators to avoid fines, penalties, or lawsuits that could result from non-compliance.

In the same vein, complying with the regulatory provisions that guide sectoral or industry activities open up benefits to the customers and society at large, some of these benefits include:

1. Satisfaction: Clients are confident in the products or services they receive, trusting in the fact that their expectations and preferences will be met. This is essential, as having a loyal base of returning customers is critical for a thriving business.
2. Choice: Compliance allows customers a wide variety of products and services that suit specific needs, enabling each client to compare and evaluate products from a more objective perspective.
3. Protection: Products and Services that comply with regulatory standards go further to protect the customer from harm or fraud. In many markets across the world, there are consumer protection laws that, from the legal perspective, allow the customer a recourse or compensation in case of injuries or losses resulting from the use of the product or services. In all, Compliance helps to protect the company and its business from damaging legal action, whilst ensuring the company delivers on its responsibilities in protecting its clients and consumers.
4. Participation: Compliance helps customers to have a voice and influence in the development and regulation of products or services. This feedback ensures that products or services are developed to serve the specific needs of identified customer groups, greatly reducing waste and enabling more efficient processes. It also helps in educating the customers on the benefits of using these products and services.

CONCLUDING THOUGHTS:

Looking ahead, the lessons learned from the Titan Submarine Disaster and other similar incidents can serve as valuable insights for improving regulatory frameworks and risk mitigation strategies. Regulators should continuously assess and update their regulations to address emerging risks and challenges. This requires a proactive approach that anticipates potential issues and incorporates new knowledge and technologies into regulatory frameworks.

Furthermore, regulators must invest in research and development to stay ahead of technological advancements and better understand the risks associated with emerging technologies. Collaborative efforts between regulators, industry experts, and researchers can help identify emerging risks, develop appropriate standards, and foster innovation in a safe and compliant manner. This would, in turn, allow more regulatory agencies to move lock-in-step with innovators and vice-versa.

Education and awareness campaigns are also crucial in ensuring that consumers have the information they need to make informed decisions about the risks and benefits of using emerging technologies. Regulators should work closely with consumer advocacy groups, industry associations, and educational institutions to provide accessible and accurate information about compliance requirements, safety measures, and potential risks.

In conclusion, regulatory compliance plays a vital role in mitigating risks in emerging technologies and industries. By establishing and enforcing clear standards and guidelines, regulators can promote safety, quality, and sustainability. Compliance not only benefits operators by establishing trust and credibility but also protects consumers and contributes to societal welfare.