An interesting recent explanation for the continued existence of fixed exchange rates is the so-called fear-of-floating phenomenon (Calvo and Reinhart, 2000). According to this view, the poor credibility of policymakers in some countries implies that the exchange rate, if left unmanaged, would prove excessively volatile. High exchange rate volatility could prove very harmful in these countries, for at least two reasons.
In the COSO framework, ERM consists of eight interrelated components that are derived from the way management runs an enterprise and that are integrated with the management process: (1) internal  BIS Review 34/2006  1  environment, (2) objective setting, (3) event identification, (4) risk assessment, (5) risk response, (6) control activities, (7) information and communication, and (8) monitoring.