The core business is the main business of libraries to achieve basic and social functions, realize library efficiency, and create library value. In the context of digital transformation, core business innovation is a key variable for achieving high-quality development of the library industry. The paper based on literature research, statistical data, case analysis, field observation, etc., this paper analyzes the development practices and related challenges of library core business, and proposes innovative strategies for library core business from the perspective of risk regulation. Research has found that in the digital transformation environment, libraries face risks such as core business configuration, cost, efficiency, specialization, and evaluation. To promote higher quality development, libraries should scientifically and reasonably determine the scope of core business, strengthen the investment of core business resources, reform core business processes, improve core business governance, and promote the coordinated development of core business and related businesses.