Critical incidents particular to an individual or family (such as parental divorce or death of a family member) and incidents of national or international significance (such as wars or terrorist attacks) effect those involved in children's services and can result in some children, families, or staff suffering long-term psychological effects. This booklet is designed to inform staff, parents, management committees, and owners of services about some of the issues involved when managing critical incidents in children's services. The booklet is intended as a guide for policy development and training in the following areas: (1) dealing initially with a critical incident or event; (2) understanding common reactions to critical incidents for children and adults; (3) promoting recovery for children, staff, and parents; and (4) knowing when and if to make referrals to other professionals or to appropriate agencies. Case studies are used to illustrate reactions of children, staff, and parent and the implications for practice. (KB)