I have been a project manager on many a Government projects and the term 'risk' has never been used in any document. The term 'issue' appears to be the acceptable term, has more of a calming effect. You are correct, that once the r-word is mentioned the hair, ears, antennae, eyebrow or what have you immediately go up.

The most negative I've used is 'problem.' I usually reserve the use of this term if it affects time-money-personnel. I use this as my baseline as learned from when I was inthe Army. Regardless of how elaborate of a briefing you presented, Field Grade Officers (I was a Comapny-Grade Officer then) always wanted to know:

1) How much time will it take?
2) How many personnel is it going to take? and
3) How much is it going to cost?

Good article. Reading these articles helps to keep me focused.

Thank You,

Javier