The most rational performance measure of a business is not the simple dollar amount of earnings, such as net income, since that will result in accepting virtually all proposals that hint at the prospect of any profit at all, regardless of risk. Nor is it Return on Assets or Return on Equity, which are simple ratios, and which often result in simply attempting to shrink or forego potentially good opportunities.
   The best measure of rational performance is a hybrid concept to maximize dollar amount of earnings in excess of the hurdle Return on Capital. It is no accident that this definition is the only one that is consistent with the goal of performance measure for a business -- maximize the risk-adjusted return to the shareholders over the long run.
   In order to achieve this goal in a prudent manner, businesses will have to measure all risks associated with their investments and contractual obligations accurately and in a timely fashion. With the advent of complex financial derivatives and other financial instruments, and deregulation of the energy industry with its complex physical instruments, quantification of risk has become a permanent necessity for all businesses.
   Cyber Solutions Inc. provides specialized management consulting and quantitative support services in the Financial, Energy and Commodity markets in the United States, Latin America and Asia. We offer service in Risk Management, Risk Measurement, Quantitative and Systems support, Quantitative and Statistical analysis, and Customized Software development.