The authors are members of the business community and government. They identify possible terrorist threats and discuss the corporate response to terrorism in the areas of airlines, banking, industry, medicine, and diplomacy, as well as the role of the government in helping to counter these threats. Corporate security arrangements as well as possible infringements on personal freedom caused by security precautions are discussed. Crisis management issues are considered and advice on hostage conduct is offered. The cost of terrorism in economic and human terms is measured, and methods for improving corporate and government response to terrorist threats are recommended. Specific issues considered include corporate, governmental, and intergovernmental attitudes, policies, and procedures on prevention and response; corporate and governmental efforts undertaken by private and public security personnel in specific cases of terrorism; relations between corporate security efforts and law enforcement agencies; and the need and prospects for developing a comprehensive national management system dealing with terrorism and corporate targets. Appended are an overview of terrorism and a chronology of transnational terrorist attacks upon American business people between 1968 and 1978. About 200 entries are included in the selected bibliography, and an index is provided. (Author abstract modified)