Terrorist organizations and individuals make use of the Internet for supportive activities such as communication, recruiting, financing, training, and planning operations. However, little is known about the level of computer-based (“cyber”) threat such terrorist organizations and individuals pose. One step in facilitating the examination and assessment of the level of cyber threat posed by terrorist organizations and individuals is development of an assessment tool or methodology. This tool would guide intelligence collection efforts and would support and facilitate comparative assessment of the cyber threat posed by terrorist organizations and individuals through the provision of a consistent method of assessment across time, amongst organizations and individuals, and between analysts. This study leveraged the professional experience of experts to engineer a new functional construct – a structured analytical technique designed to assess the cyber threat posed by terrorist entities and individuals. The resultant instrument was a novel structured analytical construct that uses defined indicators of a terrorist organization/individual’s intent to carry out cyber attacks, and their capability to actually do so as measures of an organization/individual’s overall level of cyber threat.