We consider several physical processes, dominated by plasma effects, t
hat might play roles in producing variability in AGN. One class of pro
cesses involves oscillations in the plasma itself. If accretion disks
around supermassive black holes have coronae not too different from th
ose of the Sun, then magnetoacoustic oscillations of coronal loops can
yield fluctuations on timescales from days to years. Such coronal loo
ps could also produce flares with substantial emission variations over
the short times comparable to those associated with the recently obse
rved broad-band microvariability. A second class of processes depends
upon electromagnetic fields acting to modulate themselves; these modul
ational instabilities can produce filamentation and thence rapid varia
bility. We also consider how a shift in emission and scattering mechan
ism (e.g., from Compton scattering to Raman scattering) can yield vari
ability in the observed emission.