I disagree. I mean, I agree those things happen, but the system administrator's job is to anticipate those Real World risks and manage them with tools like quality assurance, redundancy, plain old focus and effort, and many others.
The fundamental of backups is to test restoring them, which would have caught the problem described. It's so basic that it's a well-known rookie error and a source of jokes like, 'My backup was perfect; it was the restore that failed.' What is a backup that can't be restored?
Also, in managing those Real World risks, the system administrator has to prioritize the value of data. The company's internal newsletter gets one level of care, HR and payroll another. The company's most valuable asset and work product, worth hundreds of millions of dollars? A personal mission, no mistakes are permitted; check and recheck, hire someone from the outside, create redundant systems, etc. It's also a failure of the CIO, who should have been absolutely sure of the data's safety even if he/she had to personally test the restore, and the CEO too.