Hi Ashley,
just to be clear this is a risk analysis from observations about the road and surrounding environment - not actual events. The risk analysis is calibrated against actual events on a national level.
Specifically about your question, the road is analysed every 100m ?, with associated x y location , from video imagery is captured with a car also fitted with GPS, profilometers, accelerometers, etc. The imagery is used to measure the location of objects adjacent to the road, lane width, edge drop, grade etc and all the other factors used to measure the risk. These factors are run through a model calibrated against real world incidents to produce the risk ratings - google ARRB iRAP risk factors for more information or https://www.arrb.com.au/anram
this link is the Australian national star rating using a similar methodology:
http://www.raa.com.au/motoring-and-road-safety/safer-roads/road-safety-ratings
Finally, for each location we have the raw input data and the resulting risk scores for each risk group (intersection, run-off road, etc), a total score then a 'star rating'