This paper is concerned with the current tunnel practices in Ethiopia, the main challenges and risks which were associated with tunneling, risk assessment and controlling measures. In this paper the qualitative risk analysis is performed based on the surveyed data from the tunnel experts and other professionals participated on the tunneling work. The qualitative risk analysis has been conducted as an input for the risk matrix analysis method. The qualitative analysis incorporates risk identification, risk classification, risk ranking, risk responding and risk monitoring mechanism. So, based on the qualitative analysis made and the result, those risks which occurred in the tunneling phase are ranked and controlling mechanism is developed. Accordingly, a guideline of risk management for tunneling work has been developed by referring different standards and based on the current tunnel practices in Ethiopia. The study helps to easily understand the most risks which are associated with tunneling and the risk controlling mechanism. This gives guidance to those who will be participated in the tunnel project for tunneling risk management throughout the entire project implementation.