When I was working in technical support, we were discouraged from using the word "problem" when a customer called up with a malfunctioning computer. The logic behind this was that the word "problem" would perhaps suggest to the customer that something could possibly be wrong, putting them in a negative attitude towards the technician, the vendor and the vendor's program.
Instead, we were told to use the word "issue", which admitted that there was something that had to be worked on, but didn't go out and state that whatever that was was somehow negative.
As far as bureaucratic jargon goes, "issue" was a fairly sane, sensical word. It actually functioned fairly well, and is the best way to talk abouta problem without mentioning the word problem.
The major issue with the word issue is that someday I am going to be in a dangerous street situation, and will be attempting to put on a war face, when suddenly out of nowhere I shout "What's your fucking issue?!?!?"