This article provides a comprehensive framework for conceptualizing, categorizing, and quantifying system performance measures in the presence of uncertain events, component failure, or other disruptions/disasters with the potential to reduce system capacity/performance. The framework clarifies the interrelationships between notions of coping capacity, preparedness, robustness, flexibility, recovery capacity, and resilience, previously espoused as independent measures, and provides a single mathematical decision problem for quantifying these measures congruously and maximizing their values. Required solution methodologies are presented for use in evaluating system performance in terms of these measures and resulting solutions can be exploited to determine an optimal allocation of limited resources to preparedness and response options. A numerical‐transportation‐related example is provided to illustrate its application. Results of this application offer insights into these various performance measures, their relationships, and the relative importance of preparedness and response actions.