Lack of transparency. Many crisis countries suffer from a lack of transparency in governmental activities and in public disclosures of business conditions. Investors need to know the financial situation of firms in order to make informed investment decisions. If accounting rules allow firms to hide the financial impact of actions that would harm investors, then investors may not be able to adequately judge when the risk of investing in a firm rises. In such cases, a financial crisis may appear as a surprise to all but the "insiders" in a troubled firm. Similarly, if the government does not disclose its international reserve position in a timely and informative manner, investors may be caught by surprise when a devaluation occurs. The lack of good information on government and business activities serves as a warning sign of potential future problems.