The crisis management system outlined consists of three phases: pre-event preparation, including identification and research of issues and the development of tools, programs, policies, and tactics; establishment of control during the event by application of these tools and tactics; and postevent debriefing, evaluation, and adjustment of the system. To handle these phases, management should adopt three lines of corporate defense. The corporation will need a program for the collection and analysis of information. Risk management principles should be used to make sure that risk assessment provides the most comprehensive and objective data. In addition, preventive programs are needed. These require a security officer, the implementation of programs and actions to ensure site security, and preventive programs to reduce the possibility that executives will be kidnapped or fall prey to other terrorist acts. Finally, a corporate response system is needed to minimize all losses of corporate assets in crisis situations. This requires gathering information, analyzing threats, considering alternatives, making recommendations, and establishing communications with the adversary and all public and private resources. This response is provided by a multidisciplinary team of executives and should include a leader; legal, finance, personnel, and security officers; and a liaison person. Eight steps usually are involved in the development of an organization's competence to handle crisis situations: the crisis readiness survey, the charter to create a crisis management team, individual preparation, simulation of a realistic crisis, evaluation of the objective analysis of the team's operations and capabilities, followup training, and ongoing threat assessment. Photographs are supplied.