The answers differ depending on whether one is talking about the long term or the short term. In the longer term, significantly greater flexibility in exchange rates to reflect market forces would be desirable and achievable. That flexibility would help facilitate global rebalancing and reduce the problems of policy spillovers that emerging market economies are confronting today.
As with COSO's enterprise risk management framework, I encourage you to read the operations risk paper. Operations risk has always been a part of banking.