The growth of electronic services (e-services) has resulted in large amounts of personal information in the hands of service organizations like banks, insurance companies, and online retailers. This has led to the realization that such information must be protected, not only to comply with privacy regulations but also and more importantly, to attract clients. One important dimension of this goal is to design e-services that protect privacy. In this paper, the author proposes a design approach that incorporates privacy risk analysis of UML diagrams to minimize privacy risks in the final design. The approach iterates between the risk analysis and design modifications to eliminate the risks until a design is obtained that is close to being risk free.