Unless the story is told in the first person, I'm going to assume the POV is as an observer. So the wound would only be over Riley's right hip if the line had been "Cameron pulls off my shirt and examines the bullet wound, a couple inches to the right of my navel."

As for the second; I'm assuming it's you speaking, so you're not getting my clothes. If Cameron was asking, my reply would be different. Heck, if Arnie were asking my reply would also be different, but not for the same reason. :-)