Financial institutions in the Asia Pacific region can look forward in 2016 to further big ticket regulations with implications for business strategy and risk management, according to financial sector analysts and advisers. The Deloitte Asia Pacific Centre for Regulatory Strategy has released a report outlining what Kevin Nixon, lead partner for the centre, called "the moving pieces … from substantial changes in how capital requirements are calculated, to the associated and ongoing reforms such as total loss absorbing capacity and recovery and resolution planning designed to end 'Too-Big-To-Fail', to the ever-constant pressure to improve and demonstrate good conduct and culture."  Nixon predicts that "digital innovation will play a major role in altering the environment for delivery of financial services."  His colleague, Tony Wood, who is the financial services industry risk and regulatory leader for Deloitte China and Hong Kong, said: "Engagement with the policy agenda, particularly in the year of China's G-20 presidency will be essential to ensure that regulatory reforms are pursued in a manner that is sensitive to the interests of the Asia Pacific region." Tse Gan Thio, cyber risk services leader for Deloitte Southeast Asia, said that across the entire APAC region regulators were increasingly worried about the risk posed by high degrees of reliance on technology systems. "We are seeing regulators impose specific risk management requirements for technology with respect to cyber-resiliency, outsourcing and the testing of trading algorithms," he said.The ratings agencies are starting to sound a tad nervous about the dragging effect of all this regulation, too. The Standard & Poor's 2016 credit outlook for Asia-Pacific is "somewhat negative" with borrower refinancing and new financing risks high on Asia-Pacific investors' agendas. That worry is second on the risk ladder, trailing the top risk of investor anxiety about China's economy. Indeed, Standard & Poor's Ratings Services' straw poll in November 2015 indicated that investors fear issuers will face a liquidity squeeze next year because of tighter bank lending and market-making standards and a more discerning bond market.