Question regarding Role Delineation Study

Hi,

Just wish to get some explanations on below:

Under RDS, process group of Closing, if we see Task 3 -> It says "Obtain financial, legal,administrative closure using generally accepted practices and policies in order to communicate formal project closure and ensure transfer of liability"

What it means by "..transfer of liability"?

Thanks.

admin's picture

Liability is what you owe to others. When you transfer liability you de-risk yourself and now the other party owe it.

 

Eg - when you take insurance, you are transfering your liabilities to insurance company