Here is where I'm going with flooded paperwork.
Files are kept in HDD's in server rooms and such. And often duplicates are printed out and immediately thrown away when not needed. Before when files existed, you just didn't constantly reproduce something. Got up off your rear and went to the filing room to get what you needed.
At my job, there is so much paper jammed in different places it is sickening. And once a year tons is just thrown out. I guess computers do eliminate paperwork, it is employee's that reprint too many unnecessary copies and just junk them or pile them somewhere that they become buried under a heap to be thrown out.
As for a studio flooding out and having their equipment all fry, I'd hope that there would be full backups kept off site at a different location in case there would be a disaster like a fire, earthquake or giant sandworm swallowing the studio. Let us just hope it doesn't come to the sandworms...