Risk is associated with improper handling of sensitive customer information. Profits from e-commerce that are earned when there is improper use of private customer information are subject to lawsuits, restitution and other undesirable outcomes. So a firm will want to ensure appropriate privacy protections are in place to safeguard customer information. The authors present a profit optimization model for customer privacy protection investments considering the potential value implications that arise. They employ a profit-at-risk approach based on valueat risk methods from financial economics.