A company might have a "5 of 8" multi-sig. This means that to move money, five of the eight team member accounts with keys have to agree and sign off on each transaction.
This is massively better than secret sharing - once a secret is put together, that secret then works for all time and could be stole by the person that put it together. By using multi-sigs, every new transactions has to be agreed on.
With a multi-sig, if you forgot your hardware wallet's PIN, or lost it, then other team members can remove the old account from the multi-sig and add the new account. You are back in business.
When you backup a single account's key to paper or other computers, then anyone getting access to one backup compromises the entire thing. However, with a multi-sig, an attacker would have to gain access to many of the signing account keys to steal funds.
This scheme works for individuals too. You could have a 2 of 4 multi-sig wallet, two hardware wallets that you usually use for authentication, and then two backup paper keys stored in different locations. For your normal use, you just use your two hardware wallets. If you forget a password / lose one, then you can use one of the paper wallets, plus your remaining hardware wallet to get it back. If you loose both, use both paper keys. You can also rotate the paper key backups if you want, by removing the old and adding the new.
