The newspaper says your product may have killed someone. That's serious headline risk. What do you do?

Short answer: Act fast and take your punishment. That's what pharmaceutical giant Baxter International (nyse: BAX) did in January when it issued a voluntary recall of Heparin, a blood thinner that has since been linked to more than 80 deaths.

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In late December, Baxter began receiving an unusual number of calls about patients having adverse reactions--though it wasn't immediately clear if the problems were due to Heparin. On January 17, the company initiated the recall, triggering some news stories. A week later, Baxter issued a press release formally announcing the recall.

This Tuesday, Baxter Chief Executive Robert Parkinson, while contrite, blamed the problems on the company's suppliers in China: "We're alarmed that one of our products was used, in what appears to have been a deliberate scheme ... and that people have suffered as a result."

Contrast Baxter's quick steps to lead-footed Hallmark/Westland Meat Packing, a beef supplier to many U.S. public schools. In January, a video series was released by the Humane Society highlighting questionable slaughtering practices at a Hallmark/Westland Meat Packing plant. The media descended as haunting footage of cattle being jabbed with electric prods and rolled with forklifts hurtled through cyberspace. The company's initial response: "No comment."

In fact, Hallmark/Westland issued no statements until March 18--more than a month after it had shuttered the plant and announced the largest beef recall in U.S. history. In a Congressional testimony, after refusing other requests to testify, Chief Executive Steve Mendell said that he had never seen two of the three Humane Society videos. The company has not filed for bankruptcy protection, but according to Mike Smith, a ground beef supervisor: "We are not going to reopen. We're shut down permanently." (By contrast, Baxter's shares have barely budged.)

Tainted meat; lead-laced dolls; busted mortgage securities; cancelled airline flights. Crises are downright de rigueur these days. According to the U.S. Consumer Product Association, 2007 was the worst year ever in terms of the number of product recalls, with 467 consumer products recalled--and that doesn't include auto and medical snafus.

Crises don't just evaporate. That's why entrepreneurs need a plan before the storm hits. You could pay a fortune to a public relations agency skilled in the art of crisis management--or you can take triage into your own hands. If you do, there may be broader legal ramifications to consider, so be sure to run any serious crisis-management strategy by an in-house counsel.

In the Internet age, preparation starts with monitoring adversarial groups and blogs that might be inclined to dig up dirt or even spread false rumours. It also means defining--ahead of time--the specific partners, customers, stakeholders and media outlets that you will contact if bad stuff happens.

Once the crisis hits, act quickly. If you don't control the message from the get-go, someone else will. "You need to run to the crisis," says Richard Levick, co-author of Stop the Presses: The Crisis and Litigation PR Desk Reference. "The quicker you do that, the more likely you are to solve it."

Any spin-master will tell you that "no comment" is never the right answer. It smacks of guilt. "There are a hundred ways to say 'No Comment' without saying that specifically," says Howard Rubenstein, founder of Manhattan-based Rubenstein Public Relations. Even if all the facts aren't clear yet, establish that you are actively addressing the situation and will report back as soon as possible, he says. If you can, demonstrate that you have experience with this sort of situation and that you know how to handle it.

While under fire from customers, employees and reporters, it might be tempting to delegate the dissemination of information. Don't--especially when dealing with the media. "Senior management must be front and center," says Bill Keegan, director of crisis management at Edelman, a large Chicago-based PR company called on to manage several product recalls. "Don't delegate leadership and visibility."

If several people are fielding phone calls, it's a recipe for disaster, says Rubenstein. Delegate the task of fielding press calls to one or at most two people. Better yet, ask members of the media to send questions in writing and carefully prepare written responses.

If things go really wrong, you may need to call in the pros. Where to look: The Council of Public Relations Firms, an industry trade group, and the Public Relations Society of America have helpful Web sites. Fees run the gamut, but typically you'll pay more for crisis-related work than other forms of PR.

The good news in all of the bad, says Rubenstein: "The public's institutional memory is very short, absent criminal or moral transgressions. [They] are ready to forgive."

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In Pictures: Seven Tips For Running A Crisis PR Campaign