Priority countries include: India, Mexico, Brazil (more generally, Mercosur and Latin America), Turkey, UAE and Saudi Arabia (more generally the Gulf countries), ASEAN countries (in particular Thailand, Vietnam, Indonesia and the Philippines), some African countries (in particular South Africa and Algeria), Western Balkans (in particular Serbia) and Central Asia.

Emerging markets offer significant opportunities in terms of demand for machinery and equipment, infrastructure, energy, agritech and digitalization, but also entail high risks in various respects:

credit risk, buyer insolvency or payment delays
political risk, institutional instability, conflicts, sanctions
regulatory risk, legal and fiscal uncertainty, regulatory barriers
exchange rate risk, local currency volatility and convertibility risk
logistics and execution risk, infrastructure problems, customs, supply chain disruptions.
Credit risk is not just a matter of insolvency, it constitutes a real threat to business continuity, especially in high-risk countries often characterized by an unstable banking system.

Credit risk directly affects the liquidity of the company, the possibility of accessing financing and the solidity of the relationship with international partners. In the absence of adequate protection, even operations that seem profitable can quickly turn into significant losses.

In emerging markets, credit risk is amplified by:

poor financial transparency of buyers
uncertainty in contractual enforcement
weakness of local banking systems.
How to manage credit risk and protect the company
To effectively manage credit risk, Italian companies can use, in addition to insurance tools, also financial solutions widely adopted at international level:

Letter of Credit (LC) guarantees payment to the supplier against the presentation of compliant documents. It is a widely used tool in high-risk markets.
Standby Letter of Credit (SBLC) guarantees payment for a specific supply, in the event that the buyer is insolvent or defaults.
Payment Guarantee guarantees payment for a specific supply, in the event that the buyer is insolvent or defaults.
The substantial differences between a Standby Letter of Credit and a Payment Guarantee can be found in the respective regulatory bodies: UCP 600/ISP98 for the Standby and URDG 758 for the Payment Guarantee.

These instruments perform three key functions:

Settlement: payment instrument (function performed by the LC and the SBLC)
Risk Mitigation: mitigation of credit risk for the seller
Financing: they allow the buyer to obtain payment extensions, while guaranteeing the seller immediate collection. (function performed by the LC and the so-called performance SBLC)
Advantages of hedging instruments
The conscious use of credit risk management tools allows companies to:

operate in complex contexts with greater security
plan investments and supplies without fear of defaults
reduce financial exposure by improving cash flow
access bank credit lines with more advantageous conditions
improve competitive positioning in foreign markets.
Training, access to specialist consultancy and integration with corporate export strategies are essential to transform risk management into a real competitive advantage.

Equipping oneself with the right tools and knowing how to use them consciously is today an indispensable condition for successfully tackling internationalization. Risk coverage is not a cost, but a strategic investment for growing safely and sustainably in the world.