What phase involves identifying potential targets for recruitment?

The correct choice is the Spotting Phase, as it specifically refers to the process of identifying individuals or entities that may be vulnerable to recruitment for intelligence-gathering purposes. During this phase, countersurveillance is employed to analyze potential targets' backgrounds, motivations, and circumstances that could make them suitable for recruitment. This step is crucial in the intelligence cycle because successful recruitment often hinges on a thorough understanding of the targets' characteristics and potential leverage points.

In contrast, options like the Assessing Phase focus more on evaluating the feasibility and risks associated with potential operations, while the Handling Phase involves managing relationships with recruited sources once they have been established. The Developing Phase typically refers to cultivating a relationship with a recruited source to gain deeper insights or to increase the level of trust. Each of these phases plays a distinct role in the broader intelligence context, however, it is the Spotting Phase that centers solely on identifying the right individuals to approach for recruitment.