Derivatives and hedging, by analogy

About this episode

This episode explores how everyday decisions relate to derivatives and hedging, using simple analogies to explain complex financial concepts.

What if we told you that you've been using derivatives and hedging your whole life? Agreeing to buy concert tickets for a show six months away? That's a derivative. Putting a deposit down on a new car? Also a derivative. In this episode of our By Analogy series, we argue that nearly every forward-looking decision you make is a derivative in its purest form, a bet where the payoff depends on something else in the future. Plus, we'll show you how the logic you might use to hedge a risky dinner order is the same logic CFOs use to manage billions of dollars in risk. Join host Nick Tricarichi and KPMG partners, Patrick Garguilo and Mahesh Narayanasami, as they break down these intimidating financial tools using simple, everyday analogies.

People in this episode

Host: Nick Tricarichi

Guests: Patrick Garguilo, Mahesh Narayanasami

Topics covered

• derivatives
• hedging
• financial tools
• risk management
• everyday analogies

Keywords

• derivatives
• hedging
• risk management
• financial tools
• concert tickets
• car deposit
• forward-looking decisions

Mentioned in this episode

Organizations: KPMG LLP

More episodes of KPMG Financial Reporting podcast

• Insurance Insights - Springing into NAIC regulatory changes · May 13, 2026 · 31 min
• Derivatives and hedging, by analogy · April 20, 2026 · 34 min
• Exit ready - The portfolio company playbook · April 7, 2026 · 32 min
• TSR - Regulation nation: The practical reality of reporting · February 25, 2026 · 36 min
• Insurance Insights: NAIC 2025 Fall Meeting Update · February 4, 2026 · 35 min
• The Bottom Line: TSR - I can see clearly now: EU reporting in the US · January 26, 2026 · 4 min