There's a particular kind of status report that should make you nervous. Not the one covered in red. The one that's been green for eight weeks straight.
In PM circles it's called watermelon reporting. Green on the outside, red on the inside. Everything looks fine right up until the day it very much isn't, and then it goes from green to red overnight with no amber in between.
Projects don't actually work like that. Things drift. Estimates stretch. Somebody's off sick for a week. A client takes ten days to sign off something they promised in two. Real projects spend a fair bit of time in amber. If yours never does, either it's very simple or somebody isn't telling you something.
Why PMs do it
Rarely out of malice. Usually one of two reasons.
The first is that they genuinely don't know. They're reporting what they've been told, without digging, and the team's own optimism is flowing straight into the status column.
The second is that they think amber is a failing grade. Admitting a risk feels like admitting they've done something wrong, so they hold on, hoping it'll sort itself out before anyone notices. Sometimes it does. That's what makes the habit stick.
Either way, the outcome's the same. Problems arrive late, when they're expensive, rather than early, when they're cheap.
How to spot it
Look at the history, not the latest report. A string of greens followed by a sudden red is the classic shape.
Read what's actually written. Watermelon reports describe activity rather than progress. "Lots of good conversations this week." "Development is well underway." Busy words, no evidence. Ask what's done, and what's left, and see how specific the answer gets.
Check the risk log. If it hasn't changed in a month, nobody's looking at it.
And ask the team directly how the project's going. If their answer and the report don't match, believe the team.
Where it really comes from
Watermelon PMs are often made, not born.
If amber gets treated as a crisis, people stop reporting amber. If every risk raised leads to a grilling, risks stop being raised. Plenty of organisations say they want honest reporting, then react to it like it's a confession.
So if you're seeing nothing but green across the board, it's worth asking whether your PMs are hiding things or whether they've just learnt what happens when they don't.
What good looks like
A good PM flags amber early and often, and treats it as normal. They'll tell you something's at risk on a Tuesday, with a plan, rather than telling you it's failed on a Friday, with an apology.
It's less comfortable to read. It's also far less expensive.
Green isn't good news. Accurate is good news.