Lead with the data, not your opinion. "The numbers show X, which could mean Y or Z. I recommend we investigate further" is better than "the project is failing."
Strong answers show courage and tact: presenting facts without editorialising, providing context and possible explanations, suggesting next steps or deeper investigation, delivering the message privately before a large meeting, and offering solutions alongside problems. Best candidates prepare for pushback with additional data.
Tests integrity and political skill. Analysts who sugarcoat data are dangerous. Those who present it bluntly without context burn bridges. The best analysts deliver truth with empathy and solutions.