I agree. I deal a lot with model risk management in my position. Answer A was more clearly correct to me based on that experience (because really only the modeler can properly document his own model and this is part of owning your model). However, I thought the answer about challenge was very plausible because, even though that's the best way for second line to do its job effectively and "challenge" implies more of an outsider, 1LOD is the First LOD for a reason. Our modelers and users are constantly monitoring and discussing model performance, and users have to approve the use of the model, too. All of that is arguably a "challenge" and in my experience modelers and users are better positioned to vet a model than 2LOD; 2LOD is a control against 1LOD wanting to overlook defects in a model because it benefits business operations/modelers don't want to admit of errors.Is this the model risk question? I reviewed all the options and I thought option A made the most sense. I think A was something along the lines of the CRO should challenge the model developers to document the model and manage its inventory. I mean these are 2 challenges with model risk management, shouldn't the people designing the model should be the ones documenting assumptions and managing inventory but they can be passive about this or disregard this part of the process, so isn't it up to model risk or CRO to call this out?
overall these question highlights the flaw of the exam, poorly structured answered choices that are up for different interpretation. I wouldn't fault anyone who picked A or B in this case. I can't even count how many questions I was torn between two close answers.