This is a somewhat cynical take, but there are kernels of truth in there. Often, organizations not focused on quality will allow such things to happen. More than one startup has also been out out of business by not having a backup. But it’s often negligence / ignorance and not budget. When you put all the cards on the table for an organization and give them the information they need, they make much better security choices.

I think backups come up some time after MVP and launch for most organizations, this means that you don't know when it actually has to come, so someone with technical skills says hey at some point we need to put in the effort and money to get good backups and ability to restore of all this data, and someone in charge of how the business grows has to say yes we better do it.

Unless you do not open for any sort of business without having all backup system set up then you run the risk, and with thousands of companies running the risk so as to not be out-competed by faster, riskier companies someone will suffer a bad outcome of their risk-taking.

It’s negligence / ignorance that leas to stupid budget cuts.

> Their successors won't get any bonuses by increasing the budget for something that has no ROI.

Possibly, but not if the business has a culture of recognising downside risk. Single events that are not extremely unlikely and that could cripple the business are things that every company should be looking out for.