Superannuation funds are too focused on getting through the Australian Prudential Regulation Authority (APRA) risk management audit process rather than implementing appropriate risk management policies, the Association of Superannuation Funds of Australia (ASFA) said.

As a result, ASFA is calling for a change to the Superannuation Industry (Supervision) Act to lift the audit regulation, so that funds take a more fluid approach to risk management.

"We need a few funds to lead the way ... at the moment they are constrained by the legislative and the APRA guides. We've got to change that attitude," ASFA chief executive Pauline Vamos said.

"The focus is on getting through the audit ... this dumbs down the risk management plan and gives the wrong focus."

Vamos also said that as competition increases in the super industry, so will risk.

"This is the biggest challenge. But while there are risks there are also opportunities, so you've got to look at both sides of the equation," she said.

Together with Deloitte, ASFA has also updated its 2005 best practice paper on risk management to help trustees select an effective enterprise risk management framework.

"In these times of heightened expectations around governance, where reviews such as Cooper's suggest heightened standards, a sound risk management framework is vital," Deloitte superannuation partner Tony Brain said.

"This framework can be used by all types of funds and be easily tailored for any type of fund."

As the trend towards outsourcing functions to providers continues to grow, Vamos said the framework could also be used to make sure those parties had good risk management procedures.

"Funds must be satisfied that their outsourced providers have appropriate risk levels. This framework can be a tool to choose a service provider ... but we are seeing changes with outsourced providers now," she said.