Discusses how stability has become a value of civilisation and supposedly an effect of global interconnectedness, though the terrorist attacks of 2001 indicate that destabilisation is also possible. Explores the nature of stability, how it relates to the global financial system and to the rule of law. Goes on to the nature of terrorism and how it compares with organised crime and white‐collar crime in terms of risk and adherence to the rule of law. Outlines how the law is responding to the threats to stability, including the USA PATRIOT Act, the 2002 Terrorism Risk Insurance Act, and suggests how terrorist activity may be predicted. Compares the financial losses from terrorism with those from natural disasters, and describes private business’s use of risk management. Indicates why anti‐terrorist measures are likely to be of limited effect, and the risks of legal reforms against terrorism: these include restrictions on human rights and privacy.