Is there a safety standard ( besides common sense ) about placing the handrail on the closed wall side of a stairway, and leaving the stairway open on the other side for someone to potentially fall? This doesn’t make sense…
Common sense aside, I believe that arrangement is in compliance. I might mention it anyway as a safety concern.
You need a stair rail from the top step to the bottom. The open side would not need any railing unless it is > 30 inches off the floor.
Well said Joe, I believe that this would be approximately 40" at a minimum.
Personally in my home I would prefer a nice turning radius like that.
Just place the Safety concern blinker to “on” in the report.
I see nothing wrong with leaving the bottom 2 or 3 steps open. That way you can swing around at the bottom. 
From 2009 IRC:
Also, the handrail is too low. I calculated the height by looking at the number of stair risers between the floor and the chair rail.
It is 4 steps high.