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This background note is to accompany the case (692-040-1). The advent of information technology has effected many organisational changes in the world of business in recent years. There is no lack of evidence that many of the day-to-day operations and decision-making of organisations depend largely upon a sound business information system. This case used the example of an accident which brought down the computer systems at Cathay Pacific Airways, Hong Kong in August, 1991. It describes the sequence of events which followed a fire breakout in the building that housed one of Cathay Pacific''s major computer centres. The company had a large-scale contingency plan in place, hence it was soon able to keep the situation under control, and continue with normal daily operations after only a short period of total breakdown.