Yep. Folks know (or you have bigger problems). Leadership doesn't want FUD nor misleading positivity, they want constructive & predictable leadership... even if late.

The conversation they want is, "As the leader, the risk X has now hit, and to avoid underlying Y happening again and achieving predictability goals Z, I'm leaning to A or B on this timeline with those key delivery+derisking milestones. To get there, can you help with resource/negotiation/decision C, and what are your thoughts on alternatives?"