Ethiopian Railway Corporation has constructed a light rail transit for Addis Ababa. The LRTrnProject in Addis Ababa, the capital city of Ethiopia, consists of the East-west Line and the SouthnorthrnrnLine. Risk management involves assessing the risk sources and designing strategies andrnprocedures to mitigate those risks to an acceptable level. This paper considers the assessment ofrnengineering infrastructures, human factors and surrounding environment as the three mainrnfactors contributing or determining accident at railway level crossings (RLC). Accidents atrnrailways level crossings clearly dominate the railway accident. An important first step towardsrneliminating the cause of these accidents is through understanding and assessing the risksrnassociated with a given level crossing and acting on them. This paper introduces a riskrnmanagement process which involves several activities, including, hazard identification, riskrnevaluation, risk assessment, risk treatment and control and illustrates how it can bernsystematically applied to mitigate risk to AA-LRT level crossing. Improving safety of railrnoperation by risk management of accidents at levelâ€“crossing is considered as significant as arnguarantee of the safe, efficient operation of the whole railway and to better safety at levelrncrossings and upgrades to improve level crossings safety performance. Railway level crossings,rnwhich are used by high number of vehicles and trains each and every day, can severly affect thernefficiency and safety of road. Railway safety will be improved by organized risk managementrnsystem for assessing level crossing safety and safety enhancement measures. Human factors andrntechnical factors are the two major factors of accidents at AA-LRTS. Guard fence damaged andrnsignal equipment damaged is considered as intolerable risk in AA-LRTS and none of thernaccidents recorded are broadly acceptable. Railway-controlled crossing has low cost, minimumrndelay and high safety and best for the future AA-LRTS. Generally; this thesis presentsrnimprovment in safety of rail operation of Ababa-Ababa LRT by risk management of accidents atrnlevelâ€“crossing.